Tokyo, August 21, 2006 — Kawasaki Plant Systems, Ltd. (K Plant) today announced that it has received an order for approximately ¥15 billion [US$ 130 million] from SNNC Co., Ltd., an affiliate of Korea’s POSCO, for what will be one of the world’s largest ferronickel plants.
The 30,000 tons/year plant will be constructed near POSCO’s Gwangyang Works, with startup scheduled for December 2008. K Plant will design and manufacture all the main equipment except the electric furnace, including the rotary dryer and rotary kilns, as well as supervising installation and commissioning.
The new plant’s ferronickel will be supplied as a raw material for POSCO’s stainless steel production. The integrated steelmaker currently outsources procurement of ferronickel, but increased demand for stainless steel has necessitated the securing of a steady supply. Thus, POSCO has decided to build its own plant through SNNC.
K Plant has delivered ferronickel plants to such clients as PT Antam Tbk in Indonesia and Pacific Metals Co., Ltd. in Japan, and has plants under construction in Japan as well as worldwide. Winning this order for this large-scale plant is expected to enhance K Plant’s efforts to expand into global markets.