Under the pandemic, India chromium products manufacturer Balasore Alloys stopped its production due to the debt of an energy company.
After Covid-19 broke out, the price and demands for chromium products fell harshly, and it led to the disruption of supply chain, which made this company indefinitely stop its production. It is said that Balasore Alloys was unable to pay the electricity fees, and the amount was half of its raw materials cost.
During April to August, partial power was cut off. And since 14th September, the power in Balasore Alloys has been totally cut off, and its production was fully stopped.
Regarding on this, Balasore Alloys appealed to Supreme Court in Orissa State. And the court considered it as a force majeure factor, allowing this company of the delayed payment.
Meanwhile, according to the information provided by the company, Balasore Alloys is unable to restart the factory and resume to be in stale operation currently. The company has already informed its clients, and they will not take any responsibilities for the disruption of supply and the contracts signed before Covid-19. And the company didn’t disclose its restarting time.
Balasore Alloys Ltd, formerly known as Ispat Alloys (IAL) is one of the largest chromium producers and a part of Ispat Group was incorporated on 31 May ’84 as a public limited company and engaged in the business of manufacturing silicon and ferro alloys in India. It owns factories in Balgopalpur and Jabamoyee. The chromium material comes from its own mines in Orissa. In 2017, the company acquired 70% shares of the integrated chromium producer ZimAlloys, which production capacity reach 89 thousand tons per year.