Market implications for technology acquisition modes in the South African ferrochrome context

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Authors

Van der Lingen, Elma
Paton, A.

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Publisher

Southern African Institute of Mining and Metallurgy

Abstract

The South African ferrochrome industry has been faced with various challenges during the past few years, such as influences from the market, manpower strikes, China’s control over the demand for both ferrochrome and chrome ore from South Africa, and electricity supply constraints, placing increased pressure on the local industry to improve output in order to remain globally competitive. The year 2016 brought a dramatic change in the local ferrochrome industry, being marked by higher chrome ore prices and the takeover of some idle smelters. This study investigates the methods of technology acquisition used in various parts of the ferrochrome smelter value chain throughout a business cycle, and whether there is a preference for a specific acquisition in an explicit part of the value chain. The study also considers whether companies prefer to partner with local or global institutions for collaborative development, and the methods used by companies to protect their technologies.

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Keywords

Ferrochrome, Value chain, Business cycle, Chains, Commerce, Competition, Mergers and acquisitions (M&A), Smelting, Collaborative development, Electricity supply, South Africa (SA), Technology acquisition mode, Technology transfer

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Citation

Van der Lingen, E. & Paton, A. 2018, 'Market implications for technology acquisition modes in the South African ferrochrome context', Journal of the Southern African Institute of Mining and Metallurgy, vol. 118, no. 10, pp. 1087-1094.