INTERVIEW-Yildirim to apply for ferrochrome anti-dumping case

* Focus on China, Russia, Kazakhstan and S. Africa imports

* Vargon to cut output from end-May to Nov. 1

(Adds details, background)

By Thomas Grove

ISTANBUL, April 16 (Reuters) - Turkey's Yildirim Group will apply to the European Commission to open an anti-dumping case against ferrochrome imports from India, Russia, Kazakhstan and South Africa, the company's chief executive said on Thursday.

Yildirim Group, which has already slowed ferrochrome production at the four furnaces at its Swedish company Vargon, will cut output totally at the end of May until Nov. 1, CEO Robert Yildirim told Reuters.

Yildirim said cheaper imports from India, Russia, Kazakhstan, and South Africa had driven European ferrochrome prices below the cost of production for the firm, which imports its chrome ore to Sweden from Turkey.

Yildirim is petitioning the European Commission on behalf of its Swedish concern, Vargon.

"We will apply to the European Commission in Brussels to open an anti-dumping case against those four countries to protect ourselves from injury," Yildirim said.

"Stainless steel mills are not buying the amount their contracts oblige them to buy, which is forcing prices down. Low cost producers in India, South Africa, Kazakhstan and Russia also bring the materials to Europe at a low price," he added.

Global ferrochrome prices have tumbled in response to slumping demand, forcing producers worldwide to cut output by around two-thirds in recent months.

Ferrochrome is used in stainless steel to prevent corrosion.

Yildirim said an anti-dumping tax could be exercised against the imports from the four countries if the case is decided in Yildirim's favour.

Yildirim says Vargon is operating at 30 to 32 percent capacity with two furnaces working at 50 percent capacity, but the global slowdown in demand has forced the company to shut down output until Nov. 1.

Two furnaces have been closed since October, he said.

"At the end of this month one more furnace will be shut down and the other one will be shut down by May 28. At the end of May we will be shut down until Nov. 1, and we will see. The market -- if it recovers we will reopen, if not we will stay closed," he said. (Editing by Sue Thomas)