Korea Zinc buyout could jeopardize high-tech supply chains: sources

(The Korea Herald, Nov. 18)

Young Poong’s bid to buy Korea Zinc has been met with concerns that the takeover of the world’s largest zinc smelter could erode its position in the global markets and cause high-tech supply disruptions.
Industry watchers have cast doubt over the ability of Young Poong and private equity firm MBK Partners to run Korea Zinc, which exerts negotiation power in setting global zinc prices.

“Based on Korea Zinc’s track record in the zinc smelting market, which has been built on trust over a long period of time, we are creating a global standard that will continue to lead the market,” a Korea Zinc official said.

Since the late 2000s, Korea Zinc has set the benchmark treatment charge for zinc, the fee a smelter earns for converting mined concentrates into metal.
The annual benchmark treatment charges are renewed through contracts at the beginning of every year and used as a reference point to other smelting and mining firms in the world.

 

 

※ Full Article: Korea Zinc buyout could jeopardize high-tech supply chains: sources (The Korea Herald, Nov. 18)

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