Sakura Ferroalloys FeMn expansion accelerates sinter plant and converter investment in Malaysia

Sakura Ferroalloys

The Sakura Ferroalloys FeMn expansion marks a major upgrade of its Sarawak ferro-manganese operations. The company has opened a new sinter plant and started building a converter for refined FeMn products. As a result, the Sakura Ferroalloys FeMn expansion will improve raw material efficiency and diversify carbon grades for global steel customers.

The Sakura Ferroalloys FeMn expansion also reflects a strategic shift in ownership and technology. Assore now holds 54.36pc of Sakura Ferroalloys after acquiring Assmang’s stake in June. Meanwhile, ore from Assmang continues to feed the plant, while Sumitomo and JFE help secure international sales channels. Therefore, the Sakura Ferroalloys FeMn expansion combines South African ore, Japanese trading muscle and Asian steel demand.

New sinter plant boosts furnace stability and ore utilisation

The new sinter plant is central to Sakura’s plan to lift efficiency and stability. The 141mn ringgit facility, completed after 22 months, prepares more consistent feed for smelting. This consistency should improve furnace performance, energy efficiency and metallurgical recovery rates.

By sintering ore fines and optimising feed size, Sakura can use a broader range of manganese raw materials. This flexibility matters as ore quality varies across mines and market cycles. As a result, the sinter plant supports more stable high-carbon FeMn output from Sakura’s existing 250,000 t/yr capacity.

The project also underpins environmental and cost performance. Better furnace stability usually reduces specific energy consumption and slag generation. Therefore, the sinter plant strengthens Sakura’s competitiveness against other Asian and global FeMn suppliers. It helps secure long-term contracts with steel mills that demand reliable quality and delivery.

Project Salamander moves Sakura into refined ferro-manganese

Project Salamander is the second pillar of the Sakura Ferroalloys FeMn expansion. The 346.5mn ringgit converter project will produce medium-carbon and low-carbon ferro-manganese. These refined grades are essential for high-quality steel, including automotive, structural and special steels.

Construction is planned over 21 months, with hot commissioning targeted for April 2027. Full production ramp-up is expected by mid-2027, adding 70,000 t/yr of refined FeMn capacity. Meanwhile, high-carbon FeMn output will continue to serve bulk steel applications worldwide. This product diversification reflects evolving customer demand for tighter alloy specifications and cleaner steels.

JFE Mineral & Alloy’s acquisition of a 7.5pc stake in Sakura in July was a key enabler. The deal gives Sakura access to JFE’s refining technology and process expertise. Therefore, the Sakura Ferroalloys FeMn expansion is not only about hardware, but also about advanced know-how transfer. Over time, this should lift product quality, yield and margins across Sakura’s FeMn portfolio.

The Metalnomist Commentary

Sakura’s combined sinter and converter investments show how ferro-alloy producers move up the value chain under margin pressure. By pairing ore-flexible sintering with refined FeMn capability and Japanese technology, Sakura positions Sarawak as a regional ferro-manganese hub. Market participants should watch contract terms and utilisation after 2027, as these will signal how quickly higher-value FeMn displaces basic grades in Asian steelmaking.