The Georgian Manganese Zestafoni Ferroalloy Plant is cutting silicomanganese production by 60%, citing a continued decline in global market prices and reduced demand.
As the country’s largest ferroalloy producer and a key exporter, the plant announced that starting in October, six out of its 11 operating furnaces will be shut down, reducing monthly output from 20,000 tons to 8,000 tons.
“The crisis in the ferroalloy market is driven by challenges in the Chinese real estate sector and the ongoing war in Ukraine. Although silicomanganese prices reached a favorable point in mid-summer 2024, it was only a temporary improvement,” said Giorgi Tatishvili, Financial Director of Georgian Manganese.
Tatishvili added that demand for ferroalloys remains at a minimum, and despite the passage of two years and earlier positive expectations, the market crisis persists.
Gocha Kurdadze, Director of the Zestafoni Ferroalloy Plant, emphasized that the production cut has not occurred at the expense of reducing employees. "We are working to retain our entire workforce, hoping that we will eventually return to our previous production levels," Kurdadze stated.
In September last year, the plant also reduced production by 75% due to similar market conditions.
