Korean firm to set up ferro alloys unit in Vizag

The KTC Korea Company Ltd is setting up a ferro alloys manufacturing unit at Visakhapatnam.

KTC Ferro Alloys Private Limited will be a 100 percent subsidiary of the Korean company in which it is investing Rs 100 crore, DASN Varma, director of the company, told Business Standard.

The company has taken 30 acres of land from the Andhra Pradesh Industrial Infrastructure Corporation at Parawada industrial area to set up the unit. In the first phase, the company will set up a ferro alloys unit with a production capacity of 60,000 tonnes per annum and a 10 Mw power plant, he said.

The unit will commence production by the end of March 2008. However, the proposed captive power plant will take a year more for beginning power generation, he added.

"For our power requirements in the first year, we will rely on the state government. From second year we will depend on our own power."

Of the total ferro alloys production, 50 per cent will be exported to other countries. Depending on the demand, the company has plans to expand the capacity after one or two years, Varma said.