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.
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.
“The 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,” FNI President Dante R. Bravo said in a statement.
FNI said that this acquisition would help manage risks, optimize value to stakeholders, and develop downstream integration of the value chain.
GCTN is a nickel alloy enterprise in China that operates one of the world’s advanced smelters in rotary kiln-electric furnace (RKEF) technology. It produces 28,000 tons of pure nickel annually.