FNI acquires 20% of Chinese nickel alloy firm

Global Ferronickel Holdings Inc. (FNI) is set to acquire a 20% stake in the Guangdong Century Tsingshan Nickel Industry Co. Ltd. (GCTN), a Chinese nickel alloy enterprise.Â

In a disclosure to the Philippine Stock Exchange, FNI said that it signed a definitive agreement acquiring stakes at GCTN through the purchase of shares in GHGC Holdings, Inc.Â

â€œThe acquisition is expected to create reliable and consistent synergies between FNI as a nickel ore supplier and GCTN as a value-added processor, and support our ongoing diversification projects to boost profitability,â€ FNI President Dante R. Bravo said in a statement.Â

FNI said that this acquisition would help manage risks, optimize value to stakeholders, and develop downstream integration of the value chain.Â

GCTN is a nickel alloy enterprise in China that operates one of the worldâ€™s advanced smelters in rotary kiln-electric furnace (RKEF) technology. It produces 28,000 tons of pure nickel annually.Â

FNIâ€™s affiliate, Ipilan Nickel Corporation (INC), shipped out 54,700 wet metric tons of medium-grade nickel ore to CGTN.Â