Vertically integrated chrome specialist lays solid foundation

With its diverse range of niche ferroalloy and speciality alloy products, Finnish mining company Afarak Group is primed to become a major player in the global chrome market. "Our competitive advantage lies within our ability to focus on specialities," says Michael Lillja, executive director. "This unique ability sets Afarak Group apart from every other producer of ferrochrome."

Among only a few global suppliers of specialised ferrochrome, Afarak's low-carbon and ultralow-carbon products have passed stringent quality and performance standards to be incorporated into Boeing and Airbus aircrafts. Certain Afarak products have found niche applications in the automotive, aerospace, oil and gas industries, and even in high-end consumer goods such as Rolex watches. 

Through strategic acquisitions and organic growth, the company has built a complete mine-to-market organisation, comprising mining assets in South Africa, Zimbabwe and Turkey; the Elektrowerk Weisweiler smelting operation in Germany; the Mogale Alloys processing plant in South Africa; and a centralised sales and marketing division operating as RCS. This vertically integrated structure allows the company to mine, process and market a range of chrome products for use primarily in the steel and stainless steel sectors. 

"Integral to our success is our mine-to-customer model," says Sakari Knuutti, head of corporate affairs. "Having full control of the supply chain, we can automatically adjust our output rate and product mix to match market demand."

Listed on the Helsinki and London stock exchanges, Afarak is continuously evaluating organic and inorganic opportunities to generate more value for its shareholders. For Afarak, China is one market that is showing strong growth potential, particularly in its aerospace, automotive and rail sectors.

"China is currently the primary destination for our surplus raw chrome ore," Lillja says. "But now, as Chinese companies start to expand from bulk production to higher-value end products, we are seeing demand for our speciality and super alloys. We are ready to support them in this new venture."