December, 13 2005
TATA Tinplate evolves itself into a metal packaging solution provider
The Tinplate Company of India Limited TICL, an associate company of TATA Steel and the market leader in India, has integrated downstream into production of lacquered and printed tinplate sheets. This will enable the company to service the needs of the nascent processed foods industry of India and thereby facilitate the company to evolve itself into a cost effective Metal Packaging Solution Provider. TCIL is the first tinplate manufacturing company in South East Asia to have taken this step of immense value-addition to its customers, catering to the end-users demand of attractive appearance, excellent brand differentiation and creating user preference through packaging of their products.
Mr B Muthuraman Chairman of TCIL and MD of TATA Steel inaugurated a newly built up, State-of-the-Art facility named as Solution Center at the TCILs works at Jamshedpur on 3rd December 2005. This facility will provide world-class lacquered and printed tinplate sheets to service the differentiating needs of both the domestic & international markets. Presently the capacity of the Solution center is 10,000 MT per annum which will be scaled up by addition of new lines in the near future.
The Solution Center is equipped with Crabtree 2 color Marquess Plus Metal Decorating Model MT2/4538 with universal sheet metal feeder main drive. The Inline Coater is Crabtree 1200/F IL Front Register Coater with Anilox system in line model including electrical equipment used for varnish of printed sheets. The Lacquering Line consists of Crabtree 122 F / FS Front Register with Anilox coating head free standing model with universal sheet metal feeder and including main drive motor exclusively used for Lacquering product. The oven unit has applied metal sheet specification (maximum 1143 X 965 mm, minimum 712 X 432 mm) with metal sheet thickness 0.20 0.50 mm, and highest working temperature of 225 C and can produce 100 sheets per min.
Mr Bushen Raina MD of TCIL said that the Company is committed to its customers towards delivering cost effective, innovative and consumer convenient metal packaging solutions to complement the efforts of brand owners and to enhance the equity of their brands. He assured that the Solution Centre, would be a very capable entity to deliver value added services to their customers and similar facility for producing easy open ends for can components are in the project pipeline.
Indian iron ore prices move up in China
According to a report in a Chinese daily, last week's spot price of Indian iron ore in China rose marginally
The FOB price for 63.5% of Indian iron ore released by the China Chamber of Commerce of Metals, Minerals, and Chemicals Importers and Exporters (CCCMC) is up from $54 to $55 per ton. The CIF price also increased from $69 to $70 per ton.
Ispat Industries commissions sinter plant in Dolvi
Ispat Industries Limited IIL has commissioned a sinter plant, built with Chinese technology, with a capacity of 2.24 million tonnes per annum at its steel making facility at Dolvi in Maharashtra. This will allow the IIL to use iron ore fines to produce steel as, until now, it has been using pellets and lump ore for producing steel and will reduce its cost of production significantly
With the commissioning of the sinter plant, Ispats 3 million tonnes integrated steel complex at Dolvi, which requires 5.25 million tonnes of iron ore raw materials like pellets, lump ore, fines and scrap should achieve lower operating costs by replacing lump ores and pellets by sinter partially
Ispat Dolvi, which produced 2 million tonnes of finished steel last year, also recently commissioned its new electric arc furnace taking its rated capacity from 2.4 million tonnes to over 3 million tonnes per annum. The sinter plant has been.
The sinter plant and the second EAF are part of Ispats turnaround plan under corporate debt restructuring proposal approved by a consortium of lenders. Of the total CDR approved investment of about Rs 1,035 crore, Ispat has already invested about Rs 825 crore, including investments in the gas cleaning plant, ladle furnace, coal injection plant and infrastructure like jetty expansion etc
TATA Steel opens first steel retail shop Steeljunction in Kolkata
TATA Steel has opened India's first organized steel retail store ''Steeljunction'' in Kolkata to provide a one stop destination for customers intending to go for steel shopping. Alongside home construction and maintenance products, the store also sells lifestyle steel products and the products on display include 15-20 brands of equipment, furniture and kitchenware made by Tata Steel.
Apart from displaying versatility of steel, it will bring innovation of steel products and make steel buying pleasurable, Mr Muthuraman MD of TATA Steel said. We have pioneered steel making in India. Now we are making an effort to popularize the usage of steel in the country, Mr Muthuraman said.
Tata Steel deputy MD Dr T Mukherjee said if the new experiment succeeds it change the rules of selling steel in the country. The company will go on replicating the new retailing experience throughout the country if this pilot project succeeds, he said.
SAIL zeroing onto BHPs Maruwei coal mine
According to a report BHP Billiton India Chairman Mr MS Ramachandran said that SAIL is eager to take part in the companys Maruwei mine. No specifics were released. The Maruwei project is expected to have an annual output of 5 million tons and will be commissioned in 2009.
TopIndian steel majors participating in AEC World Expo in Mumbai
It is reported that some of the steel majors including TATA Steel, BlueScope, JSW and ESSAR shall be taking part in AEC World Expo. TATA Steel has announced plans to launch a new brand for hollow sections during the Expo
The AEC World Expo is a special event to target architects, engineers and contractors across the country with participation from the construction industry including steel. Positioned as Indias first-ever and largest exposition for Architecture, Engineering and Construction (AEC) industry, the AEC World Expo & Conferences organized by Jasubhai Media Pvt Ltd and Indian Architect & Builder aims to create a platform for the AEC fraternity.
Over 300 companies would be participating in this exhibition and would showcase the most innovative trends and material in the fields of Architecture, Engineering & Construction. The event shall be held at the MMRDA Grounds, Bandra-Kurla Complex, Mumbai, India from 14th - 18th December 2005.
China plans to control steel production to 400 million tonnes
China will limit annual steel production capacity to not more than 400 million tons during its 11th five-year plan which starts next year, according to the National Development and Reform Commission NDRC. In a drive to curb surging investments that cause excessive supply of steel, the country plans to phase out 100 million tons of iron production capacity and 55 million tons of steel making capacity by 2010, the top economic planning body said in a statement.
The steel output capacity in China last year jumped 35% to 419 million tons, while another 119 million tons of capacity are planned or under construction.
A policy the central government adopted in July encourages more industry mergers and aims to have the top 10 domestic mills account for more than 50% of the country's total output by 2010 and 70% by 2020.
"Steel demand in the country next year will grow at a limited pace as government measures are set to take effect," said Mr Wu Xichun, former chairman of the China Iron and Steel Association.
Mittal Steel to buy another 41% stake in Bosnia's Zenica
Mittal Steel announced that it has acquired another 41% stake in Bosnia's Zenica steel company, bringing Mittal Steel's total stake in Zenica to 92%.
Mittal Steel said it paid $98 million to the Kuwaiti Investment Agency, which is now no longer a shareholder in Zenica.
The only other shareholder in Zenica is the Bosnian Federal government, which holds the remaining 8%
Mittal Steel had acquired 51% of the company then known as BH Steel, from the Government of the Federation of Bosnia-Herzegovina and the Kuwaiti Investment Agency in August 2004.
China sets 2006 coal export quota qt 80 million tonnes
China's coal export quota for 2006 has been set at 80 million metric tons, unchanged from 2005, according to National Development and Reform Commission. In China, only state-owned coal export enterprises that are authorized export management rights can apply for the coal export quota.
China exported 60.76 million tons of coal in the January-October period in 2005, down 15.2% on year. During 2004 China exported 87 million tons of coal to countries, including Japan and South Korea, to exceed the quota of 80 million tons, but for 2003, it was about 94.1 million tons, about 15% higher than for 2004.
Sources from the NDRC's Economic and Trade Department also estimated that China's coal output will reach 2.2 billion tons next year.
AZE starts new wide plate mill
Abu Zabeel Engineering Industries AZE, owned by the Organization of Military Production, is starting production of flat special steel plates near Cairo. The mill is capable of producing up to 3.5 meter wide plates in 4-80mm thick, in special and alloy steel. The factory was inaugurated on 6th of December 2005.
In the initial phase, slabs for this project will still be imported.
Arcelor is the technology partner for this project, while equipment was supplied by SMS.
Kuzbassrazrezugol reports 2.2% increase in coal production
Russian coal mining company Kuzbassrazrezugol produced 36.933 million tones of coal from January to November period, up 2.2% from the prior years production of 36.121 million tonnes. The production during the eleven months includes 3.518 million tonnes of coking coal. Over the eleven months it has shipped 35.938 million tonnes of coal
In November it was produced 3.396 million tonnes of coal, including 287,600 tonnes of coking coal.
Bid for El Mutun iron project in Bolivia due on December 21st
It is announced that the interested companies could submit their bid for to develop the El Mutun iron project in Bolivia on December 21st. It is reported that five international companies are likely to submit their offers as they have purchased the bidding documents and are gathering data on the projects
The likely bidders include Brazil's EMPX Siderrgica Brasil, China's Luneng Shandong Group, Mittal Steel, Argentina's Siderar and India's Jindal Steel & Power Limited. Other interested companies can still buy bidding rules and make an offer
El Mutun is one of the world's largest iron ore deposits, with some 40Bt of reserves over 60 sq km at an average content of 50% iron, according to Bolivia's government. The deposit is close to the Bolivia-Brazil border, 41 kilometers south of the city of Puerto Suez.
KCI Konecranes receives major crane order from Mittal Steel Poland
KCI Konecranes will be supplying 8 steel mill cranes to Mittal Steel in Poland, through SMS Demag, who is responsible for a turnkey contract which includes installation of a 2-strand slab caster at Dabrowa Gornicza Works of Mittal Steel Poland and was formerly know as Huta Katowice
KCI Konecranes supplies the cranes as part of the turnkey delivery by SMS-Demag. Two cranes will be used for maintenance purposes and the remaining in the handling process. The cranes have high duty ratings with lifting capacities up to 70 tons and are designed to operate in hot environments. Five cranes will handle 1 to 3 slabs of 900x176mm simultaneously and the sixth crane is equipped with magnets to handle slabs on the cutting table. All cranes are equipped with KCI Konecranes' patented inverter frequency control technology; DynAPilot anti sway system and air-conditioned E-rooms.
Mittal Steel's Dabrowa Gornicza Works will start to produce approximately 3 million tons of slabs after commissioning of this new slab caster from current levels of 1.5 million tonnes
SMS Demag AG is the Metallurgical Plant and Rolling Mill Technology Business Area of the SMS Group. SMS Demag AG is a plant builder and worldwide leader in the steel, aluminium and copper industries, embracing the entire product range from the entire steel-making plant, continuous casting and rolling mills technology, up to finishing lines for hot and cold strip.
KCI Konecranes is a world leading crane technology and service company. The company is organized along three business areas, Maintenance Services, Standard Lifting Equipment and Special Cranes In 2004, Group sales totaled Euro 728 million.
Malaysian Hiap Teck to supply line pipes to oil and gas industry
Hiap Teck Venture Bhd, which has invested RM40 million in a plant to manufacture line pipes, is poised to supply the products to the oil and gas industry in two years, said its MD Mr Kua Hock Lai. He said the group had applied for the American Petroleum Institution's certification for the line pipes and the facility in Klang would mark the group's entry into the lucrative industry.
We plan to supply pipes not only to the domestic market but also to international oil and gas players. Demand will not be an issue as the global oil and gas industry is booming, Mr Kua added
Separately, the group had also invested RM45 million in a new pipe mill to produce a wider range of steel products to cater to a wide spectrum of industries. The new plant, which started commercial production last month, is said to be the first in the region to produce pipes of up to 18 inches in diameter.
Mr Kua said the group planned to expand its exports to the United States, Europe, Canada and the Middle East. He said the group had received orders from these countries for pipes to be used in the construction of buildings and infrastructure projects. We will increase the percentage of our exports from the current 30% to 50% in the financial year ending July next year, he said.
USIMINAS announces investment strategy
Brazilian Usinas Siderurgicas de Minas Gerais SA USIMINAS, Latin America's largest steel producer has announced its medium and long term investment plans to create more value and further strengthen its competitive position and domestic market leadership
The medium and long-term strategy of USIMINAS will advance on two fronts. Firstly strengthening and growing in the local market by making investments in quality and product mix improvement in its mills. The program will total US$1.5 billion over the next five years. The plans include construction of a new coke oven plant in Ipatinga, capacity expansion in the plate mill by 300,000 per year, a new hot strip mill with a capacity of up to 4 million tons per year at the Cubatao plant revamping of two continuous casting machines and auxiliary steel shop equipment
The second strategy is growth and internationalization by taking advantage of its capacity as an efficient and competitive steel producer, actively seeking partners and or acquisitions abroad, which will allow the company to grow internationally in such a way as to create value. The key factor of this strategy is the construction of a 5-million ton per year plant, an investment of around US$3 billion. The project and selection of main partners, such as CVRD, is in progress. The necessary strategic partnerships and assured international demand for slabs are pre-conditions for the new mill.
USIMINAS is an integrated steel producer with consolidated net revenues of R$ 12.2 billion in 2004. The USIMINAS System, made up of USIMINAS and Cosipa, has an annual production capacity of 9.5 million tons of raw steel and occupies a position of leadership in the domestic flat steel market in the automobile industry, auto parts, agricultural and highway machinery sectors, electrical and electronic equipment segments and large-diameter pipe industry.
Gerdau Ameristeels Beaumont plant lockout ends
After more than 6 months of closure, Gerdau Ameristeels Beaumont plant has reopened on Monday. About 25% of the workers are scheduled to return now. The Union says most of its workers will be called back by mid-January. The company is expected to hold orientation sessions Monday, with actual production resuming later in the week.
However, the United Steelworkers of America Local 8586 union and Gerdau Ameristeel have not agreed on contract terms. For now, it appears the Union will not work under its own terms. "I understand the company is going to impose its last offer, which could be problems down the road for us" said Mr Williford, a member of the Union. "If we don get a contract, there the possibility of a strike. Of course, we hope it doesnt come to that."
Egypts Kandil Industry commissions new CR line
It is reported that the production at the second cold rolling mill of Egypts Kandil Industries started last month. The new cold rolling flat steel line has a production capacity of 240,000 tonnes per year and with the new line in production, the companys annual production capacity of CR has been increased to 306,000 tonnes per year
Kandils new galvanizing line will also be commissioned next month. This line will be capable of producing thickness between 0.25 and 2mm and width of below 1250mm. The totally galvanizing production capacity will reach about 240,000 tonnes
Vietnam plans to cut coal exports from 2007-2010
Vietnam plans to reduce its crude oil and coal exports from 2006 to 2010, to increase energy supply in the domestic market as per a government report. The Ministry of Planning & Investment MPI has proposed that for export of coal during 2006 should remain unchanged to 14 million metric tons but should be gradually reduced such that it will stand at 8 million tons by 2010.
In the first 11 months of 2005 Vietnam is estimated to have exported 15 million tons of coal valued at $571 million, up 44.6% on year in volume and 82% in value over 2004
Slovenian tube maker Alpos opens a production facility in Bosnia
Alpos, a producer of steel pipes, has opened a new production facility in Prnjavor, Bosnia-Herzegovina and a part of the production from its central production facility in Slovenia's Sentjur will be relocated to the new location. The facility is part of the UNIS steel pipe factory that Alpos bought a year ago and then set out to renovate. After it makes all the payments to the government of the Republic of Srpska, Alpos is to become a 90% owner of UNIS
The facility in Bosnia costing Euro 5.3 million will allow the Alpos to double its output of cut steel strips and welded steel pipes. It is reported that the company is planning to move such production from Sentjur to the new location.
Alpos generated SIT 28 billion (Euro 117 million) in revenues in the first nine months of the year, making a net profit of SIT 200 million (Euro 834,000). The company expects to increase revenues by 16% next year as it expands production to other locations in the former Yugoslavia.
Rock face collapse at Russian coal mine in Rostov kills 2
It is reported that an accident took place on Sunday night in the Krasnosulinsky District in Rostov region at Mine No. 37, which belongs to the Sulinugol Company. A rock face collapsed at a depth of 100 meters, while 13 miners were working there and as a result two people died, one was hospitalized and ten people were rescued
The removal of rock is going on in the coal face and specialists are working to establish the cause of the accident. A task group from the local prosecutors office is analyzing the reasons for the rock collapse. Deputy Prosecutor of the district Mr Maxim Yudin said that After the examination of the scene of the accident and the establishment of all the details, we shall decide whether or not to institute criminal proceedings
Native title agreement signed for Wilpinjong Mine
Wilpinjong Coal Pty Ltd a wholly owned subsidiary of Excel Coal Limited and the North East Wiradjuri Native Title Claimants Group has concluded a Native Title Agreement for the Wilpinjong Coal Project Mining Lease area on Monday at the Wilpinjong site and was to be sent for signing to the Minister for Mineral Resources, The Hon Ian MacDonald MLC.
Details of the agreement, which deals with employment and training opportunities and other benefits, remain confidential.
"This agreement shows that when mining companies and the local community sit down and talk, native title works," NSW Native Title Services CEO Mr Warren Mundine said. A spokesman for the North East Wiradjuri people Mr Bill Allen also welcomed the agreement saying: "Our community looks forward to a strong, committed relationship with Wilpinjong Coal throughout the life of the mine and beyond.
Excel Coal MD Mr Tony Haggarty said: "We are extremely pleased with the agreement reached with the North East Wiradjuri Native Title Claimants and look forward to continuing this constructive relationship for many years.
Search for 6 trapped in Cebu coal mine suspended
It is reported that the search for the six miners who were trapped inside a mine tunnel following an explosion on Saturday night in a mountain village in Dalaguete town has been suspended as Mr Antonio Labios regional energy director did not allow anybody to enter the tunnel until it was cleared of carbon monoxide.
He, however, declined to declare the six as dead, saying "we should not lose hope" of finding them alive. But Dalaguete Mayor Mr Ronald Sesante said only a miracle could save the trapped workers.
Eight miners were on their way out of the 490-meter tunnel in Barangay Dumalan, a mountain village about 25 km from the town proper, when an explosion occurred at about 7 p.m. on Saturday. The bodies of two miners were immediately retrieved by fellow miners shortly after the explosion because the fatalities were closer to the entrance of the tunnel. Six miners, however, were still trapped.
Algoma Steel shelves sell off plans
Algoma Steel is reported to be taking down the "for sale" sign after determining that an acceptable transaction would not occur between the steelmaker and a potential buyer. Instead it will instead pay shareholders a special dividend
"An acceptable transaction is not available at this time and we will continue to explore growth opportunities through joint ventures, acquisitions and other options."," said Mr Denis Turcotte President and CEO. Mr Turcotte says that the overriding factor for not pursuing the sale of Algoma was that no company was willing to pay the price executives and its board thought the company was worth.
Grande Cache Coal secures $20 million debt financing
Grande Cache Coal Corporation announced that it has established a $20 million secured credit facility with Brookfield Bridge Lending Fund. The credit facility consists of a $10 million term facility and a $10 million revolving facility. The facility is secured by a general security agreement and has a maturity date of April 8, 2006, subject to a two-month extension option.
The credit facility has financed the retirement of a loan the Corporation received from a related party in October 2005, and will finance Grande Cache Coal's working capital.
Grande Cache Coal is an Alberta based metallurgical coal mining company whose experienced team of coal professionals are developing a long-term mining operation to produce metallurgical coal for the export market from Grande Cache Coal's coal leases covering over 15,000 hectares in the Smoky River Coalfield located in west-central Alberta.
Stelco facing shareholder battle
Stelco Inc said that it intends to seek court approval of its restructuring plan on January 17. Creditors finally endorsed the plan last Friday, following months of fighting over the refinancing deal that was more than a year in the making. But between now and mid January, Stelco must contend with its shareholders.
Lawyer Mr Peter Jervis, who is representing a group of shareholders led by Toronto investment firm Pollitt & Co, said his clients believe Stelco needs to put itself up for sale now to unlock its real value. Mr Jervis's group contends in court documents that Stelco's shareholder equity should be worth $1.1 billion to $1.3 billion.
Stelco abandoned a sale process earlier this year. While it received a handful of offers, including one from Russian steel giant OAO Severstal, the firm said they were all inadequate. Rather than accept a takeover, Stelco decided to restructure on its own with new financing.
Shareholders are on the lowest rung of groups to be paid during a restructuring, and normally don't get anything from a company that's filed for bankruptcy protection.
IPSCO announces appointment of Mr Burnett as Corporate Treasurer
IPSCO Inc announced that Mr Gregory R. Burnett has joined the Company as Corporate Treasurer. Mr. Burnett brings nearly 20 years of financial, treasury, and accounting management experience to IPSCO, including 8 years in the steel industry. Mr Burnett will be based at IPSCO's operational headquarters in Lisle Illinois and will report directly to Ms Avril
IPSCO's Senior VP and CFO Ms Vicki Avril are pleased to welcome Mr Burnett to IPSCO. "Mr. Burnett's nearly 20 years of broad financial experience in finance and treasury, including as Director of Treasury for a large publicly traded company, and his familiarity with steel industry issues, makes him a strong addition to the IPSCO financial and management team," she stated.
IPSCO operates steel mills at three locations and pipe mills at six locations in the United States and Canada. As a low cost North American steel producer, IPSCO has a combined annual steel making capacity of 3,500,000 tons. The Company's tubular facilities produce a wide range of tubular products including line pipe, oil and gas well casing and tubing, standard pipe and hollow structural. Steel can also be further processed at IPSCO's five temper leveling and coil processing facilities.
O'Neal Steel appoints Mr Brockman as in-charge for Gulf
O'Neal Steel Inc. has announced the appointment of Mr Gerald Brockman, a 26 year veteran of the company, to the position of regional VP of O'Neal's Gulf Region, which includes Dallas, Houston and Lafayette
Brockman served previously as district manager of O'Neal's Birmingham district. He also served earlier as district manager for the company's Houston operations.
O'Neal Steel is the nation's largest family owned metals service center. Based in Birmingham, the company has more than 40 locations nationwide. O'Neal's family of companies also includes Metalwest LLC, Aerodyne Alloys LLC, Leeco LLC and TW Metals.
