2. Organization and Subsidiaries
Ferroglobe has a diversified production base consisting of production facilities across the United States, Europe, South America, South Africa and Asia.
The subsidiaries of Ferroglobe as of December 31, 2017, classified by business activity, were as follows:
|
|
|
Percentage of Ownership |
|
|
|
|
||
|
|
|
Direct |
|
Total |
|
Line of Business |
|
Registered |
|
Alabama Sand and Gravel, Inc. (2) |
|
— |
|
100.0 |
|
Electrometallurgy ‑ North America |
|
Delaware - USA |
|
Alden Resources, LLC (2) |
|
— |
|
100.0 |
|
Electrometallurgy - North America |
|
Delaware - USA |
|
Alden Sales Corporation, LLC (2) |
|
— |
|
100.0 |
|
Electrometallurgy - North America |
|
Delaware - USA |
|
Core Metals Group Holdings, LLC (2) |
|
— |
|
100.0 |
|
Electrometallurgy - North America |
|
Delaware - USA |
|
Core Metals Group, LLC (2) |
|
— |
|
100.0 |
|
Electrometallurgy - North America |
|
Delaware - USA |
|
Gatliff Services, LLC (2) |
|
— |
|
100.0 |
|
Electrometallurgy - North America |
|
Delaware - USA |
|
GBG Holdings, LLC (2) |
|
— |
|
100.0 |
|
Electrometallurgy - North America |
|
Delaware - USA |
|
Globe Metallurgical Inc. (2) |
|
— |
|
100.0 |
|
Electrometallurgy - North America |
|
Delaware - USA |
|
Globe Metals Enterprises, Inc. (2) |
|
— |
|
100.0 |
|
Electrometallurgy - North America |
|
Delaware - USA |
|
GSM Alloys I, Inc. (2) |
|
— |
|
100.0 |
|
Electrometallurgy - North America |
|
Delaware - USA |
|
GSM Alloys II, Inc. (2) |
|
— |
|
100.0 |
|
Electrometallurgy - North America |
|
Delaware - USA |
|
GSM Enterprises Holdings, Inc. (2) |
|
— |
|
100.0 |
|
Electrometallurgy - North America |
|
Delaware - USA |
|
LF Resources, Inc. (2) |
|
— |
|
100.0 |
|
Electrometallurgy - North America |
|
Delaware - USA |
|
Norchem, Inc. (2) |
|
— |
|
100.0 |
|
Electrometallurgy - North America |
|
Florida - USA |
|
QSIP Canada ULC (2) |
|
— |
|
100.0 |
|
Electrometallurgy - North America |
|
Canada |
|
Quebec Silicon LP (2) |
|
— |
|
51.0 |
|
Electrometallurgy - North America |
|
Canada |
|
Tennessee Alloys Company, LLC (2) |
|
— |
|
100.0 |
|
Electrometallurgy - North America |
|
Delaware - USA |
|
West Virginia Alloys, Inc. (2) |
|
— |
|
100.0 |
|
Electrometallurgy - North America |
|
Delaware - USA |
|
WVA Manufacturing, LLC (2) |
|
— |
|
51.0 |
|
Electrometallurgy - North America |
|
Delaware - USA |
|
Cuarzos Industriales, S.A.U. |
|
— |
|
100.0 |
|
Electrometallurgy - Europe |
|
A Coruña - Spain |
|
Ferroatlántica, S.A.U. - Electrometallurgy (1) |
|
— |
|
100.0 |
|
Electrometallurgy - Europe |
|
Madrid - Spain |
|
FerroPem, S.A.S. |
|
— |
|
100.0 |
|
Electrometallurgy - Europe |
|
France |
|
Grupo FerroAtlántica, S.A.U |
|
100 |
|
100.0 |
|
Electrometallurgy - Europe |
|
Madrid - Spain |
|
Hidro-Nitro Española, S.A. - Electrometallurgy (1) |
|
— |
|
100.0 |
|
Electrometallurgy - Europe |
|
Madrid - Spain |
|
Rocas, Arcillas y Minerales, S.A. |
|
— |
|
66.7 |
|
Electrometallurgy - Europe |
|
A Coruña - Spain |
|
Rebone Mining (Pty.), Ltd. |
|
— |
|
100.0 |
|
Electrometallurgy - South Africa |
|
Polokwane - South Africa |
|
Silicon Smelters (Pty.), Ltd. |
|
— |
|
100.0 |
|
Electrometallurgy - South Africa |
|
Polokwane - South Africa |
|
Silicon Technology (Pty.), Ltd. |
|
— |
|
100.0 |
|
Electrometallurgy - South Africa |
|
South Africa |
|
Thaba Chueu Mining (Pty.), Ltd. |
|
— |
|
74.0 |
|
Electrometallurgy - South Africa |
|
Polokwane - South Africa |
|
Cuarzos Industriales de Venezuela (Cuarzoven), S.A. |
|
— |
|
100.0 |
|
Other segments |
|
Venezuela |
|
Ferroatlántica de Venezuela (FerroVen), S.A. |
|
— |
|
90.0 |
|
Other segments |
|
Venezuela |
|
Actifs Solaires Bécancour, Inc |
|
— |
|
100.0 |
|
Other segments |
|
Canada |
|
Emix, S.A.S. |
|
— |
|
100.0 |
|
Other segments |
|
France |
|
Ferroatlántica Brasil Mineraçao Ltda. |
|
— |
|
70.0 |
|
Other segments |
|
Brazil |
|
FerroAtlántica Canada Company Ltd |
|
— |
|
100.0 |
|
Other segments |
|
Canada |
|
Ferroatlántica de México, S.A. de C.V. |
|
— |
|
100.0 |
|
Other segments |
|
Nueva León - Mexico |
|
Ferroatlántica Deutschland, GmbH |
|
— |
|
100.0 |
|
Other segments |
|
Germany |
|
Ferroatlántica I+D, S.L.U. |
|
— |
|
100.0 |
|
Other segments |
|
Madrid - Spain |
|
FerroAtlántica India Private Limited |
|
— |
|
100.0 |
|
Other segments |
|
India |
|
Ferroatlántica y Cía., F. de Ferroaleac. y Metales, S.C. |
|
— |
|
100.0 |
|
Other segments |
|
Madrid - Spain |
|
Ferroatlántica, S.A.U. - Other segments - Energy (1) |
|
— |
|
100.0 |
|
Other segments |
|
Madrid - Spain |
|
FerroAtlántica International Ltd |
|
— |
|
100.0 |
|
Other segments |
|
United Kingdom |
|
Ferroglobe Services plc |
|
100 |
|
100.0 |
|
Other segments |
|
United Kingdom |
|
FerroManganese Mauritania SARL |
|
— |
|
10.0 |
|
Other segments |
|
Mauritania |
|
Ferroquartz Company Ltd |
|
— |
|
100.0 |
|
Other segments |
|
Canada |
|
Ferroquartz Holdings, Ltd |
|
— |
|
100.0 |
|
Other segments |
|
Hong Kong |
|
FerroQuartz Mauritania SARL |
|
— |
|
90.0 |
|
Other segments |
|
Mauritania |
|
FerroQuébec, Inc. |
|
— |
|
100.0 |
|
Other segments |
|
Canada |
|
FerroTambao, SARL |
|
— |
|
90.0 |
|
Other segments |
|
Burkina Faso |
|
Ferrosolar OPCO Group SL. (3) |
|
— |
|
75.0 |
|
Other segments |
|
Spain |
|
Ferrosolar R&D SL. (3) |
|
— |
|
51.0 |
|
Other segments |
|
Spain |
|
Ganzi Ferroatlántica Silicon Industry Company, Ltd. |
|
— |
|
75.0 |
|
Other segments |
|
Yuanyangba, Kanding Country -Sichuan -China |
|
Globe Metales S.A. (2) |
|
— |
|
100.0 |
|
Other segments |
|
Argentina |
|
Globe Specialty Metals, Inc. (2) |
|
100 |
|
100.0 |
|
Other segments |
|
Delaware - USA |
|
Hidro-Nitro Española, S.A. - Other segments - Energy (1) |
|
— |
|
100.0 |
|
Other segments |
|
Madrid - Spain |
|
Mangshi FerroAtlántica Mining Industry Service CompanyLtd |
|
— |
|
100.0 |
|
Other segments |
|
MangShi, Dehong -Yunnan -China |
|
MangShi Sinice Silicon Industry Company Limited |
|
— |
|
100.0 |
|
Other segments |
|
MangShi, Dehong -Yunnan -China |
|
Ningxia Yongvey Coal Industrial Co., Ltd. (2) |
|
— |
|
98.0 |
|
Other segments |
|
China |
|
(1) |
FerroAtlántica, S.A.U. and Hidro Nitro Española, S.A. carry on business activities in both the Electrometallurgy – Europe and Other segments – Energy. |
|
(2) |
Entered to the scope of consolidation during 2015 as a result of the business combination (GSM subsidiary). |
|
(3) |
Entered to the scope of consolidation during 2017. |
Subsidiaries are all companies over which Ferroglobe has control.
Control is achieved when the Company:
|
· |
has power over the investee; |
|
· |
is exposed, or has rights, to variable returns from its involvement with the investee; and |
|
· |
has the ability to use its power over the investee to affect the amount of the investor’s returns. |
The Company has power over the investee when the voting rights are sufficient to give it the practical ability to direct the relevant activities of the investee unilaterally. The Company considers all relevant facts and circumstances in assessing whether or not the Company’s voting rights in an investee are sufficient to give it power, including:
|
· |
the total voting rights held by the Company relative to the size and dispersion of holdings of the other vote holders; |
|
· |
potential voting rights held by the Company, other vote holders or other parties; |
|
· |
rights arising from other contractual arrangements; and |
|
· |
any additional facts and circumstances that indicate that the Company has, or does not have, the current ability to direct the relevant activities at the time these decisions need to be made, including voting patterns at previous shareholders’ meetings. |
Consolidation of a subsidiary begins when the Company obtains control over the subsidiary and ceases when the Company loses control of the subsidiary.
The Company uses the acquisition method to account for the acquisition of subsidiaries. According to this method, the consideration transferred for the acquisition of a subsidiary corresponds to the fair value of the assets transferred, the liabilities incurred and the equity interests issued by the Company. The consideration transferred also includes the fair value of any asset or liability resulting from a contingent consideration arrangement. Any contingent consideration transferred by the Company is recognized at fair value at the date of acquisition. Subsequent changes in the fair value of the contingent consideration classified as an asset or a liability are recognized in accordance with IAS 39 either in the income statement or in the statement of comprehensive (loss) income. The costs related to the acquisition are recognized as expenses in the years incurred. The identifiable assets acquired and the liabilities and contingent liabilities assumed in a business combination are initially recognized at their fair value at the date of acquisition. The Company recognizes any non-controlling interest in the acquiree at the non-controlling interest’s proportionate share of the acquiree’s identifiable net assets.
Profit or loss for the period and each component of other comprehensive (loss) income are attributed to the owners of the Company and to the non-controlling interests. The Company attributes total comprehensive (loss) income to the owners of the Company and to the non-controlling interests even if the profit or loss of the non-controlling interests gives rise to a balance receivable.
All assets and liabilities, equity, income, expenses and cash flows relating to transactions between subsidiaries are eliminated in full in consolidation.