NEW HAVEN, W.Va.--(BUSINESS WIRE)--Felman Production, LLC (“Felman”) today announced that West Virginia’s Public Service Commission (“PSC”) issued an order (“Order”) that establishes a special variable rate plan based on market conditions in which Felman would receive a discount off its electricity costs when the ferroalloy market is down and pay a premium when times are good.
Felman’s Chief Executive Officer Mordechai “Motti” Korf commented, “While we did not get everything we requested from the PSC, we are very pleased with the ruling. We believe this Order provides an important step in making Felman a viable producer able to weather the ups and downs of the ferroalloy market long term. We thank the United Steelworkers Local Union 5171, representing workers at Felman, which strongly supported the company when it filed its petition with the PSC last August. Members of Local 5171 will vote next week on modifications to the current collective bargaining agreement with the company, which, if passed, will have the effect of further strengthening Felman’s long term viability.”
According to the Order, should Felman choose to accept the approved special rate and enter into a contract with Appalachian Power Company (“APCo”), the contract must be filed with the PSC by June 30, 2014. Any restart at Felman would take several weeks after entering into a contract with APCo.
About Felman Production, LLC:
Founded in 2006 and headquartered in New Haven, WV, Felman Production, LLC is a leading producer of high-quality ferrosilicomanganese, an essential deoxidizer and alloy additive used in the manufacturing of steel. When utilizing multiple furnaces in around-the-clock operations, the company has the capacity to produce approximately 105,000 metric tons of silicomanganese annually at its 190 plus acre facility. Felman Production’s products are distributed to steelmakers across North and South America through its sister company Felman Trading, Inc., an international ferroalloys trading company. Felman Production is one of only two companies in the United States that produces critically important silicomanganese. Felman Production is a wholly-owned subsidiary of Miami-based Georgian American Alloys, Inc. For more information, please visit: www.fpiwv.com