SIMPAC Group and Brazil's Lima Group Promote Joint Production of 'Ferro Silicon'

Secured 50% Stake with $10 Million Investment in Joint Venture Silbraco
Co-Producing Low-Carbon High-Purity Ferro Silicon, Supplying 2,000 Tons Monthly Domestically
"Global Demand Surges, 70% China Monopoly, Urgent Need for Independent Supply Chain"

One of the largest ferroalloy manufacturers in Korea, SIMPAC Group, is pushing forward with the establishment of a joint venture with RIMA Industrial S.A., a leading silicon alloy manufacturer in Brazil.

On the 31st of last month (local time), Ricardo A. Vicintin (Mr. Ricardo A. Vicintin, photo left), Chairman of the Lima Group, and Choi Jin-sik, Chairman of the SIMPAC Group, shook hands after signing an investment agreement.
[Photo by Junggyeonryeon]

SIMPAC Group, the chairman company of the Korea Federation of Medium-sized Enterprises, announced on the 5th that it signed a $20 million investment agreement with RIMA Group in S?o Paulo, Brazil, on the 31st of last month (local time) for the joint production of low-carbon high-purity ferrosilicon.

SIMPAC Group plans to invest $10 million in the joint venture SILBRAKOR, securing a 50% stake, and aims to stably supply at least 2,000 tons of low-carbon high-purity ferrosilicon monthly to the domestic market.

RIMA Group, a leader in the production and sales of silicon alloys in Brazil, will participate in the joint venture establishment through a $10 million in-kind investment.

SIMPAC Group, Korea's largest industrial machinery manufacturer, expanded its business portfolio into the ferroalloy sector by acquiring POSCO M-TECH's ferrosilicon division in 2019. Currently, it is the only domestic manufacturer of high-purity ferrosilicon, producing and supplying top-grade low-carbon high-purity ferrosilicon based on its unique proprietary technology.

Since 2020, SIMPAC Group has been actively advancing the production technology of low-carbon high-purity ferrosilicon, a key material for electrical steel sheets used in electric vehicle motor cores, in cooperation with RIMA Group.

A SIMPAC Group official stated, "With the spread of eco-friendly culture and the increase in electric vehicle usage, the global demand for ferrosilicon used as a deoxidizer in steel production processes, as well as for electric vehicle motor cores and electrical steel sheet materials, is rapidly increasing. Given that China monopolizes 70% of the global silicon market, it is necessary to secure an independent supply chain for the sustainable growth of various industries including electric vehicles."

Ferrosilicon is classified into general, high-purity, and low-carbon high-purity types depending on titanium content and silicon ratio. General ferrosilicon is used as a deoxidizer in steel production, while high-purity and low-carbon high-purity ferrosilicon are used as key materials for generator steel sheets and electrical steel sheets for electric vehicle motor cores.

Mr. Ricardo A. Vicintin, Chairman of RIMA Group, said, "As electric vehicles rapidly replace internal combustion engines, the growth prospects for the low-carbon high-purity ferrosilicon market have become very high. We will actively cooperate to establish a stable and sustainable production and supply base for low-carbon high-purity ferrosilicon based on SIMPAC Group’s advanced technology."

Choi Jin-sik, Chairman of SIMPAC Group, emphasized, "If semiconductors are the rice of the industry, then the materials sector, which is the foundation of all production, is the soil that nurtures even that. We will do our best to contribute to building the foundation for sustainable economic and industrial development by actively utilizing Brazil’s optimized production conditions such as low electricity costs from hydropower, abundant natural resources, and low labor costs to enhance the self-reliance of the domestic materials industry."

This content was produced with the assistance of AI translation services.