Establishes Operational Foothold in Eastern Europe

Adds to GAA’s Growing Portfolio of Leading Ferroalloy Companies

22/04/2013 — MIAMI — (BUSINESS WIRE)

In a cross-border merger, Miami, FL-based Georgian American Alloys, Inc. (“GAA” or the “Company”), a leading manufacturer, supplier and trader of ferroalloys, today announced that it has acquired 100 percent ownership interest in Georgia-based Georgian Manganese, LLC and Vartsikhe 2005 LLC (collectively “GM”), the country’s top producer and exporter of standard and high-grade silicomanganese.

GM is compromised of three separate divisions including Chiatura Manganese Mine, a manganese ore mining operation; Zestafoni Ferroalloy Plant, a silicomanganese processing plant; and Vartsikhe, the hydroelectric facility which powers the Zestafoni plant and Chiatura mine. This unique organizational structure allows GM to control all facets of the production process, providing it significant cost and operational advantages.

GAA’s strategic acquisition of GM establishes the Company’s growing network of complementary ferroalloy businesses, which includes Felman Production, LLC, Felman Trading, Inc. and CC Metals & Alloys, LLC. GAA has previously provided management oversight of GM, and this history gives GAA the intimate knowledge necessary to ensure a seamless integration of GM into its portfolio.

“We are very happy to complete this acquisition, as it directly aligns with GAA’s long-term goal of building the world’s premier ferroalloys source,” said Mordechai Korf, chief executive officer of GAA. “The rare combination of a mine, refining facility and power plant creates a number of unique competitive advantages and cost synergies. Furthermore, the addition of GM solidifies GAA’s international presence and capabilities, and strengthens the relationship the US enjoys with Georgia.”

The added production capacity will help GAA meet its demand for silicomanganese. GM’s divisions will continue to operate under their existing management teams. Felman Trading, GAA’s ferroalloys trading company, will continue to serve as the primary distributor of silicomanganese produced by GM.

“We are pleased to join the GAA family, and look forward to contributing to the Company’s history of operational excellence,” said Velvel Lozynskyy, director of Georgian Manganese. “We are eager to take full advantage of GAA’s financial capabilities and distribution platform, in order to better serve our clients through stronger, more comprehensive offerings and more reliable service than ever before.”

About Georgian American Alloys, Inc.:

Georgian American Alloys, Inc. (“GAA”), headquartered in Miami, FL, owns and operates a number of companies, both domestic and international, which manufacture and supply various grades of ferrous alloys, elements essential in the manufacturing of steel. Companies under the GAA umbrella include North American-based Felman Production, LLC, Felman Trading, Inc., CC Metals & Alloys, LLC, and Eastern European-based Georgian Manganese, LLC which is comprised of Chiatura Manganese Mine, Zestafoni Ferroalloy Plant, and Vartsikhe Hydroelectric facility. With a diverse portfolio of complementary businesses and marketing arrangements, GAA is a global leader in the ferroalloy industry, offering seamless, reliable delivery of quality products at competitive prices. For additional information please visit: www.gaalloys.com

About Georgian Manganese, LLC:

Based in Georgia, Georgian Manganese, LLC and Vartsikhe 2005 LLC (collectively “GM”) is the country’s top producer and exporter of silicomanganese. GM is comprised of three divisions: 1) Chiatura Manganese Mine, a manganese ore mining operation; 2) Zestafoni Ferroalloy Plant, a silicomanganese processing plant; and 3) Vartsikhe, the hydroelectric facility which powers the Zestafoni plant and Chiatura mine. The Company’s unique organizational structure allows it to control all facets of the silicomanganese production process, providing it significant cost and operational advantages. GM is an indirect, wholly-owned subsidiary of Miami, Florida-based Georgian American Alloys, Inc. (“GAA”) a leading manufacturer, supplier and trader of ferroalloys. GM’s products are distributed to steelmakers across the globe through Felman Trading, Inc., its sister company under the GAA umbrella, which also includes Felman Production, LLC and CC Metals & Alloys, LLC.

CONTACT:

ICR, Inc.
Jason Chudoba, John McKenna, Ted Lowen
203-682-8200
Jason.Chudoba@icrinc.com
John.McKenna@icrinc.com
Ted.Lowen@icrinc.com

KEYWORDS: United States Europe Asia Pacific North America Florida Georgia

INDUSTRY KEYWORDS: Manufacturing Steel Natural Resources Mining/Minerals

MEDIA: