December, 29 2005
SAIL reports 8% increase in production in 8 months
Steel Authority of India Limited is poised to achieve the best ever production figures during the current fiscal with the overall steel production touching 10.3 million tonnes by November 2005 as against the annual target of the production of saleable steel at 13.5 million tonnes by March 2006
SAIL Chairman Mr VS Jain said that since 2005-06 was the first year of their Corporate Plan till 2012 the initial phase involved various de-bottlenecking, up gradation of critical units, optimum utilization of valuable resources and full exploitation of the existing potential of the company. "With the present level of performance, SAIL's integrated steel plants had been operating at 107% capacity level," Mr Jain said adding that Bokaro Steel Plant attained 100% capacity utilization for the first time this year.
"There has been a sustained improvement in techno-economic parameters in the current year, including drastic reduction in energy consumption level of nearly 15%" the SAIL Chairman said adding "the labor productivity grew by 9% during the current financial year."
Billet AD duty case by Kalyani steel stayed
It is informed by Kalyani Steel that subsequent to the order of CESTAT dated November 25th 2005, the matter was taken up again the New Delhi High Court.
On December 20th the writ petition was disposed of with the observation that what was expected in the Order dated 1.8.2005 was that the application for interim relief filed along with the Appeal before Customs Excise and Service Tax Appellate Tribunal (CESTAT) would be disposed of on merit on the Appeal being listed.
The court order notes that the Notification is stayed till such time as the Petitioner application for stay and/or interim relief is disposed of by the CESTAT by means of a speaking Order.
SAIL plans JV with CIL for coking coal
In order to reach 20 million tonne production target by 2011-12, the Steel Authority of India Limited is looking for a joint venture with the Coal India Limited to increase availability of indigenous coking coal to all its plants.
SAIL Chairman Mr VS Jain told media that in view of the necessity of augmenting supply of indigenous coking coal they had decided to jointly develop at least three iron ore mines including the Munidih, Kapuria and CM16 with an estimated investment of nearly Rs 400 crores within the next one year.
If required, SAIL can fund the development of these mines, Mr Jain said. It will invest Rs 116 crore to develop the Munidih-16 mine under Bharat Coking Coal Ltd, a CIL subsidiary. It could be adjusted with the companys coal bill to CIL. Similarly, Seam-15 of the Munidih mine and Kapuria block could be developed. Seam 15 and 16 would give SAIL 1.2 million tonnes of coking coal.
"Moreover, we have explored the possibility of acquiring a number of mines abroad particularly in Australia, Russia and Poland," Mr Jain said and informed that a number of official delegations had already visited these countries to identify suitable mines and do the necessary groundwork.
PSL to supply 197 kilometers of 30 X70 pipes to GAIL for Uran pipeline
PSL Ltd. has announced that it has bagged an order worth over Rs 2.40 billion from GAIL through an international bidding process for GAIL's Dahej Uran Pipeline Project. PSL would manufacture and supply 30" API 5L X 70 Grade pipes of 197 Kilometers with three layer of external Polyethylene and Internal Coating.
Pipe manufacturing order is for Rs2.02 billion and the pipe coating order is for over Rs380 million. The supplies are expected to be completed within eight months from now
SAIL wants NINL & MOIL
Steel Authority of India Limited chairman Mr VS Jain called for merger and consolidation of the public sector steel units as this will help the industry to face competition from the global steel majors such as Arcelor, Mittal Steel and Posco which are setting up plants in India. Only a mega steel entity on the domestic front will be able to face the challenge.
Mr Jain said that SAIL is ready to upgrade its saleable steel production capacity from the present 8.6 million tons to 20 million tons by the year 2011. For this purpose, SAIL is investing Rs 3,800 crore in various schemes for up gradation of its units in Rourkela, Durgapur, Bokaro and Bhilai. SAIL chairman said that mergers are also necessary to support its expansion drive.
The process of merger of IISCO with SAIL is likely to be completed shortly. SAIL is reported to be keen on merger of Neelanchal Ispat Nigam Limited NINL in Orissa and Manganese Ore and Iron Ltd MOIL
Minerals & Metal Trading Corporation MMTC is the principal promoter of NINL and holds around 40 % and several Orissa Government undertakings hold a 25 per cent stake in NINL, whose annual crude steel capacity is 1.1 million tonnes. NINL recorded a profit of over Rs 200 crore in 2004-05 and also won an iron ore-mining lease from the Orissa Government. It had merged its subsidiary Konark Met Coke Ltd with itself last year.
He, however, clarified that these were his personal views and Union Government would be considering all opinions, including those of the State Governments and individual employees, before taking a final decision.
Indian coal production up in 2005
Coal Production in India during the calendar year 2005 has been 354.97 million tonnes as against 338.53 million tonnes during the year 2004 and the dispatch of coal to the power sector has also increased from 270.30 million tonnes in 2004 to 278.12 million tonnes in 2005.
Coal India Ltd CIL has achieved all time high production and dispatch to power sector during 9mmonths by dispatching 171.35 million tonnes of coal to power sector, which is 6.36 million tonnes more than dispatches in the same period last year. This has resulted in an improved coal stock position at the end of power houses.
Gujarat NRE Coke's steel mill at Kutch starts production
According to a release issued by Gujarat NRE Coke commercial production has commenced from the steel plant set up by Gujarat NRE Coke at village Lunva in the Kutch district of Gujarat. The plant has been set up with an investment of nearly Rs 50 crore for manufacturing semis and hot rolled products.
"The company is also in the process of setting up a captive power plant of 20 MW. The steel plant and the captive power plant are in adjacent premises of its coke manufacturing facility at Bhachau. The power plant would be using the waste heat generated by the coke oven plant thereby leading to substantial savings in cost," the release added.
PSL Vizag to expand pipe making capacity
Mr Ashok Punk MD of PSL has been reported to have said that PSL plans to expand its steel pipe making capacity by 150,000 tonnes per annum at its Vizag plant.
The plan is to enhance the capacity of the two mills by 75,000 tonnes per annum each at Vizag, Mr Punj said. "The expansion plan has been undertaken owing to unfolding market in Orissa, particularly in steel sector, and Andhra Pradesh for oil & gas related activity in the Kakinada region," Mr Punj added. The project is expected to be completed by March 2007.
The company is also planning to set up a unit abroad to cater to the overseas markets. "The unit is likely to be located in the West Asian region. However, plan for the overseas project including site selection would be finalized in the next fiscal," Mr Punj added. The company is currently executing orders from Doha and has been bearing additional cost on logistics by serving them from the country.
Live bombs recovered in Punjab
At least 18 bombs, many of them live, were recovered from a dry sewage canal that runs alongside the national highway in Ludhiana on Tuesday. Police said that the explosives, which were discovered by an employee of the municipal council, could have been hidden in metal scrap and dumped in the canal by scrap dealers.
We received information from the municipal corporation in the morning that while cleaning a gutter; workers came across a few shells. Police party reached on the spot immediately and found 18 shells, of which three or four had been used, while others were live. We also found one or two grenades.
Power tariff hikes on cards
It is reported that National Thermal Power Corporation and most State electricity boards are slated to jack up tariffs to counter increased domestic coal prices and having to use expensive imported coal to tide over shortage in domestic production.
It is reported that NTPC faces an incremental fuel cost of 7 paisa per unit purely on account of an increase in domestic coal prices, besides an expected jump in tariffs on account of the use of 3.98 million tonnes of imported coal for several of its stations since the second half of the year.
NTPC faces a hefty increase in fuel costs which could go up to Rs 1.20 per unit, against its current average fuel cost of around 65 paisa per unit, for its Talcher and Rihand expansion projects. Some of its newer stations coming up next year, including the ones at Kahalgaon and Vindhyachal, will also depend heavily on imported coal. Also, NTPC faces increased transportation costs for moving imported coal using the Railways from the ports to its non-coastal stations.
While NTPC accounts for around 30 per cent of the total power generated in the country, coal-fired generating stations of SEBs, which account for much of the remaining generation, are also faced with increased costs on account of coal imports.
SAIL de-lists shares from Calcutta stock exchange
Steel Authority of India Ltds shares have been voluntary de-listed from the Calcutta Stock Exchange Association Ltd (CSE) with effect from December 21, 2005.
TopKanoria Chemicals 2nd power plant begins production
Kanoria Chemicals & Industries Ltd said its second 25 MW coal-based power plant at chemical works division in Uttar Pradesh has commenced commercial production.
The company, which deals in manufacturing and marketing of industrial chemicals and agro chemical informed the Bombay Stock Exchange today about the commencement of production at the Renukoot chemical works division at Renukoot, UP.
Weak Indian iron ore prices give China leverage in supplier talks
China is expected to benefit from weak Indian iron ore prices as it negotiates 2006 supply agreements with the world's three major iron ore suppliers, the China Non-ferrous Metals Association CNMA said quoting Mr Jiang Liangqun, a steel expert in Shanghai saying that China has new leverage against CVRD, BHP and Rio
CNMA said that FOB prices for Indian iron ore with 63.5% Fe content have fallen to $51 to $52 per ton recently from $55 per ton, due to falling demand from China. Iron ore imports from India accounts for about 20% of China's total imports CNMA added
China's domestic iron ore prices have been falling since November, and have dropped by about 100 yuan per ton so far, the association added.
Chinese media had reported earlier this month that demand projections for iron ore products in 2006 have emerged as a major sticking point in the ongoing talks between Asian importers and iron ore suppliers. Talks with Chinese importers started on Nov 30, and after two rounds, the parties are still far apart on fundamental issues, according to reports.
Mittal Steel seeking 49% of China's Baotou Steel
It is reported that Mittal Steel has confirmed that it was in talks to buy a stake in China's Baotou Iron & Steel (Group) Co Ltd. Sources close to the deal are reported to have said that Mittal Steel was in negotiations to acquire a 49% stake. Mittal Steel said it was too early to comment on the potential outcome of the talks.
If it goes through, Mittal's latest deal would be its second major investment in a Chinese mill. Baotou, a mid-sized mill based in the eponymous Inner Mongolian industrial city, has annual capacity for 7 million tonnes of steel and is targeting 8.5 million tonnes next year and 10 million tonnes by 2007.
A deal between the two could apply pressure on rival Arcelor, which is locked in negotiations to try and buy a chunk of Laiwu Steel Corp Ltd., a mid-sized mill in Shandong province in Eastern China. "The move could also help speed up the Arcelor and Laiwu negotiations, as foreign giants are eager to get a head start," said Mr Mingchao, an analyst with Tianxiang Investment Consulting.
Shougang output surpasses 10 million tonnes
Beijing-based Shougang Corporation, one of China's major iron and steel groups, has announced that its steel output has for the first time in history surpassed 10 million tons this year. According to a report of the latest China Economic Herald, the group realized the target 17 days ahead of schedule.
In May this year, the corporation achieved a new monthly record of one million tons of steel in a month.
Shougang has maintained a stable growth in production despite the challenges brought by rising and falling steel prices this year.
PSMC privatization Preparations on
Pakistan government has directed the Pakistan Steel Mills Corporation PSMC management to prepare financial impact of the possible Golden Handshake Scheme GHS and Voluntary Separation Scheme VSS or other benefits for its employees and officers at the earliest. The PSMC management has been directed to play an active role in negotiations with unions and officers associations for smooth completion of privatization process of the PSMC early next year
These decisions were taken at an inter-ministerial committees meeting held here recently to discuss and agree on the action plan for resolution of critical issues concerning privatization of the PSMC.
The PSMC will repay Rs.8.5 billion government of Pakistans guaranteed or extended loans to the federal government before its privatization. The PSMC will arrange around Rs 3 billion credit from commercial banks to meet its post-privatization cash shortfall after payment of the government of Pakistan loan.
The ministry of finance will arrange out-of-court settlement between the House Building Finance Corporation and the PSMC on the HBFCs Rs 440 million loan claims against the PSMC, and it will also adjust Rs 260 million NAB recovered amount against PSMC loans to the government of Pakistan.
Credit Suisse raises stake in Dofasco
Credit Suisse Group has more than doubled its stake in Dofasco Inc., a Canadian steelmaker that's the target of a takeover fight between Arcelor SA and ThyssenKrupp AG. Credit Suisse First Boston Canada Inc and CSFB LLC have acquired 2.9 million shares since November 23, raising the bank's stake to 4.23 million shares, according to a release. Credit Suisse's 5.5 percent stake in Dofasco is worth C$275 million ($236 million) at the current price.
The common shares were acquired for investment purposes only and not for the purpose of influencing control or direction over Dofasco,'' Switzerland's second-biggest bank said in the statement.
Shares of Hamilton, Ontario-based Dofasco have surged 47% since November 22, the day prior to Arcelor's bid for the company.
Arcelor, the world's second-biggest steelmaker, made a hostile C$4.3 billion bid for Dofasco. ThyssenKrupp, Germany's biggest steelmaker, topped the offer Nov. 28 with a C$4.8 billion bid backed by Dofasco. Arcelor increased its offer to C$4.9 billion or C$63 a share on December 23.
Eramet loses court appeal versus Falconbridge
French miner Eramet has lost a last ditch legal appeal to keep hold of a giant nickel deposit in New Caledonia over which it had clashed with Canadian miner Falconbridge and the French state. A Paris court ruled against Eramet on Wednesday in a dispute about the $2.2 billion Koniambo nickel project in New Caledonia, a French overseas territory in the South Pacific.
"The court found there was not a case to uphold," said Mr Bernard Grelon, a lawyer representing the French state, which had backed Falconbridge in the dispute.
In 1998, the French government told state controlled Eramet to transfer its stake in Koniambo to Falconbridge after a standoff between New Caledonia politicians and France over investments and job creation. The move was designed to ease growing tensions in the island's quest for independence from France. In bringing the case to court, Eramet accused Falconbridge of not honoring its side of the agreement, and had sought to break off the deal.
Falconbridge said it was pleased to have cleared the legal hurdle and said the project was now positioned to enter the next phase of development.
Koniambo, in the northern part of the main island of New Caledonia, is forecast to yield about 60,000 tons a year of nickel, which is used to make stainless steel. Falconbridge said in a statement on Wednesday that detailed engineering plans for Koniambo would be advanced in 2006. It also said it is set to begin construction in 2007 with an operational startup in 2009 at the earliest.
Doubts had been raised over whether Falconbridge was fully committed to the deal, partly because the company is being taken over by fellow Canadian miner Inco Ltd, which is developing its own similar-sized nickel project on the island. A lawyer for Eramet told that the Paris court had ruled that if Falconbridge did not fulfill its commitment to develop Koniambo, then Eramet could claim back the nickel site.
Dry bulk shipping rates may rise by 20% - Mr Hansteen
Freight rates for the ships carrying iron ore and coal may rise in the first quarter as Chinese steel mills increase imports before a gain in ore prices, said Mr Nicolai Hansteen, chief economist at Oslo-based shipbroker Lorentzen & Stemoco. There is potential for a 5 to 15% increase in ore prices next year and this will make steel producers go from drawing on inventories to building stocks ahead of an April price increase, boosting capesize demand'' Mr Hansteen said
Therefore revenue for capesize ships minus costs such as fuel and port fees may climb as much as 20% from the $30,553 a day assessed on December 22 by the Baltic Exchange Mr Hansteen said
Capesize rates rose to a record on December 7 last year, according to the Baltic Exchange. Mr Hansteen had predicted four weeks earlier that dry bulk shipping costs would reach an all time high as growth in Asian trade clogged ports with vessels loading and unloading cargoes. Mr Hansteen on March 14 correctly predicted freight rates would rise for a month before a second quarter slump. Capesize earnings gained 18% to peak at $79,633 a day on April 15 before falling 74% to this year's low of $21,058 a day on August. 2
The Baltic Dry Index, which measures costs to charter different sizes of ships on global routes, stood at 2,407 points on Dec. 23. It has more than halved since rising to an all-time high of 6208 points on December 6 last year.
Kobe Steel goes green on galvanized stock
Kobe Steel of Tokyo has begun commercial production of hot-dipped galvanized steel sheet with no chromate layer. Instead, it is using a Greencote GX-GC treatment, which coats an inorganic composite film on the galvanized layer of the steel.
The Greencote GX-GC steel is noted for its corrosion resistance, paintability and weldability, and has the same or higher mechanical and chemical properties as conventional chromate-treated steel. The sheet is used in construction, home appliances, electronics and office equipment.
Kobe Steel believes that when production of chromate-treated hot-dipped galvanized sheet ends in March, it will be the first Japanese steelmaker to meet chromate-free requirements for all steel products sold in the European Union under RoHS (restriction of hazardous substances) standards for electrical and electronic equipment.
The company stopped production of chromate-treated electro galvanized steel sheet in March 2005. Chromate treatment has been widely used for over 50 years since it improves the corrosion resistance and paint ability of coated steel sheet. However, it has hexavalent chromium banned under RoHS, which takes effect this July.
Krivy Rih iron ore mine complex privatization in first quarter of 2006
Ukrainian Industrial Policy Minister Mr Volodymyr Shandra said last week that Ukraine would soon sign protocols with Slovakia and Romania on the arrangements for selling the Kryvy Rih plant. He said the protocols would state that Ukraine sells its interest in the plant at a tender, and that the winner would then come to an agreement with the co-owners Slovakia and Romania. "I think the Krivy Rih mine's sale will take place in the first quarter of 2006," Mr Shandra said.
Following the collapse of the Soviet Union, construction of the Krivy Rih mining complex, which began in 1985, passed to Ukraine. Completing and commissioning the first phase of the plant will cost an estimated $200 million. The budgeted construction cost for the mine was $2.4 billion, of which $1.65 billion has been spent. The complex will use output from the Pivdenny and Novokryvorizhsky mines, as well as the Valyavkivskoye deposit, which has reserves of 800 million tonnes of low-grade ore.
The complex will initially be able to produce 6.6 million tonnes of pellets, but this will later increase to 10 million tonnes. The investor, who wins a future tender, will have to ship 17 million tonnes of pellets to Slovakia and 30 million tonnes to Romania in the decade following the Kryvy Rih complex's completion.
The State Property Fund recently said eight potential buyers had expressed an interest in the mine, but it did not name them. However it is reported that Mittal Steel, Ukraine's Inhulets and Poltava iron ore producers, Russian MMK, Chinese Sinosteel and Russia's Metalloinvest are believed to be interested in the mining complex
Nizhneserginsky Wire and Steel plant starts production in Ural Russia
The EAF Shop No 1 of Nizhneserginsky Wire and Steel Plant has started commercial production recently. The EAF shop No. 2 is expected to start production by 30 June 2006 with an installed capacity of 1 Million tons
During the installation process EAF NO 1 has shown very good results by recording 39 heats in a day with a ladle of 90 Tonnes. Taking into account a number of other results, the steel mill could be benchmarked with Germany's Badische Stahlwerke BSW.
South Korean steel imports forecast to reach new high
South Korea's steel imports will likely reach a new high this year due to a surge in imports of Chinese products, an industry body said. South Korea's steel imports gained 8.1% from a year earlier to 17.4 million tons in the January-November period, with a monthly average of 1.5 million tons, the Korean Iron & Steel Association said. Compared to last year's annual figure of 17.7 million tons, this year's total imports will definitely be higher, the association projected.
The percentage of Chinese shipments out of the entire imports has risen from 9.7% in 2001 to 24.4% in 2004. As of the end of November this year, over 41% of all inbound steel shipments were from China, according to the association. Chinese imports increased from about 1 million tons in 2001 to 4.3 million tons in 2004 and 6.2 million tons this year, the association said.
However, imports from Japan, South Korea's biggest source of steel from overseas, have remained at about the same level in recent years. They amounted to 6.1 million tons in 2001 and edged up to 9 million tons in 2004. This year, the figure was 7.1 million tons, only slightly higher than that of China.
The association predicted steel imports will likely total 18.7 million tons in 2006, an amount similar to this year's figure. "A surge of Chinese imports will likely continue next year despite a high inventory level in the country," said the association.
Belarus increases steel output by 7.7% in 11 months
Belarus has increased crude steel production by 7.7% to 1.91 million tonnes, finished steel by 10% to 1.76 million tonnes.
The state department informed that the production of ordinary grade wire increased by 20.2% to 130,100 tonnes but steel pipe production fell by 6.9% YOY to 97,300 tonnes.
Simmons fires up majority interest in Alton Steel
Attorney Mr John Simmons, founder of the Simmons Cooper law firm bought out all but one of his partners in Alton Steel Inc on November 30, bringing his interest in the Alton Steel to more than 90% up from 16%. Now Mr Simmons and Mr Michael Cook, GM of the mill and son of CEO Mr Mel Cook, are now the sole stockholders. Mr Simmons, with five other investors, helped resurrect the former Laclede Steel Inc in 2003.
Alton Steel produces 30,000 tons of steel a month as steel bars, slabs and billets
Mr Simmons' involvement in the reopening of the mill in Alton, which closed in 2002 after Laclede Steel declared bankruptcy, stemmed in part from sentimental reasons as Mr Simmons' father had worked in the mill. Mr Simmons and his partners made an initial investment of $14 million to reopen the mill. The purchase was well-timed, taking place shortly before steel prices began to soar.
Drozapol-Profil to start building steel group in January 2006
Drozapol-Profil, Poland's listed distributor of steel products has been currently talking to three companies for acquisition. We want all the mergers to become one process Mr Wojciech Rybka, Drozapol-Profil CEO said. We may tell you about the first acquisition soon, at the beginning of January. In the first quarter, we will execute the next acquisition, Mr Wojciech Rybka said. The group may be complete in the middle of next year.
He added that one of these companies is smaller than Drozapol, while the two others are bigger. Drozapol has sales of PLN 100 million (Euro 26.1million). The annual sales of the new group should amount to PLN 400-500 million.
Georgian ferro alloy plant raided by financial police
It is reported that Georgian Financial Police has sealed Zestaphoni Ferro Alloy accounting department and railway lines connecting the factory's workshops over the weekend saying they need to check all financial documents and contracts in order to find suspected violations.
Representative of the Financial Police say the inspection will allow the factory to function normally. "We are not hindering the factory's operations. We are not stopping their work. However there is an inspection going on there based on specific information," the head of the investigative department of the Financial Police Mr Levan Mkheidze said.
However the head of the supervisory board of the factory Mr Ilia Kokaia has blamed the state for sabotaging the company and fearing possible arrest, Mr Kokaia left the country for Austria over the weekend after the Financial Police started their inspection.
One of the main shareholders of Zestaphoni is the Austrian company DCM. The Zestaphoni plant produces ferromanganese and silicon manganese and is a major customer of the Chiatura Manganese Mine. In 2004 the plant produced 120,000 tons of ferroalloys. In Soviet times, the plant's annual output averaged around 500,000 tons.
Iran's Choghart development plan operational
Choghart Development Plan has already started its pilot production and it is expected to be fully operational by the year end, deputy commissioner of the plan Mr Hassan Nuraddin Musa said. The full supply of water, gas and electricity, as required by the plan, is at final stages and additional water supply from Yazd to the location for future need is also underway, he stated
The Choghart Development Plan is aimed at producing raw materials for steel industries with the capacity of 1.6 million tons concentrate each for two lines
Voss Clark to spend $2 million on facility expansion
Steel processor Voss Clark will spend $2 million to expand its facilities at Clark Maritime Centre and the ground was broken on November 15 and is expected to be complete by April 1. Voss will add 66,115 square feet of warehouse space onto the 420,000 square feet existing plant
Mr Joseph Rhodea, president and CEO of Voss Clark, a division of Voss Industries Inc said that "We were basically running out of room with our current setup and this will give us more storage capacity for steel in raw form and finished product."
As a part of the expansion, Voss Clark will also upgrade its flat-rolled steel pickling operations, Mr Rhodea said.
Power supplies to Krivy Rih iron ore mine complex snapped
The Kirovohradoblenerho power utility cut power supplies to the incomplete Kryvy Rih Oxidized Ore Mining and Beneficiation Plant, a prime asset that Ukraine hopes to privatize in the first quarter of 2006 as per a press release.
The utility warned the plant last week that it risked being cut off for electricity debts of more than 500,000 hryvni. It said it had left the mine with the minimum supplies necessary to avoid damage to the environment.
Bakrie secures pipe deal from Indonesian PGN
Bakrie & Brothers spokesman Mr Lalu Mara Satria Wangsa in a press statement said that a contract worth Rp 374 billion ($38.1 million) has been signed between Indonesian state owned gas utility firm PT Perusahaan Gas Negara PGN and a consortium consisting of PT Bakrie Pipe Industries and PT Bumi Kaya Steel Industries for supply of steel pipes to PGN
The pipes of diameter 4 to 24 will be used for the construction of PGN's gas distribution facilities in West Java, which will have a total length of around 272 kilometers. The first delivery of the pipelines is expected to arrive by March next year, and will be installed in distribution areas around Cikampek, Karawang, Bekasi, Bogor, Jakarta, Tangerang and Banten.
Publicly listed PT Bakrie & Brothers, a diversified group with companies in the infrastructure, plantation, property and telecommunications sectors, is owned by the family of Coordinating Minister for People's Welfare Aburizal Bakrie.
PSMC privatization PPP starts opposition
Mian Raza Rabbani, leader of the opposition in Senate has accused the government of privatizing Pakistan Steel Mills PSMC in hurry to benefit the land mafia and make the country a client state by selling strategic assets to foreign investors. He said his party was opposed to the privatization of national strategic assets to foreign investors and PSM is a national asset, which is considered to be the key to industrial development and its privatization would make Pakistan a client state depending upon the foreign investors
The government seems in a hurry to privatize the PSM and there are rumors that the City Bank is behind this move, he said. The PPP legislator said the government was violating its own policy by privatizing a profit-earning public sector asset, running with the production capacity of 93 percent.
Pacific Steel Casting to clean up its act
Pacific Steel Casting Berkeley, which has been the target of hundreds of complaints by neighbors, will pay $17,500 to clear nine violations it received this year from the Bay Area Air Quality Management District. Under terms of the settlement reached last week Pacific Steel Casting also agreed to install the $2 million carbon filtration system at one of its three plants to reduce odor emissions.
Air quality regulators received 330 odor complaints about the factory, between January of 1998 and March of 2005, with neighbors complaining that the smell of burning plastic caused headaches and nausea.
Steel Technologies setting up unit in Mexico for Electrolux
Sheet steel processor Steel Technologies is following client Electrolux to Juarez, Mexico, and is building an 80,000 sq ft plant to start producing in the latter half of 2006. Mr Michael J. Carroll, Steel Technologies president and COO, says the investment is between $9 million and $10 million.
"Theres a lot of manufacturing activity in the entire region of Juez and El Paso, Texas, and many companies we are familiar with, and we intend to support them with a highly service-oriented steel processing facility in Juez," Mr Carroll says.
Steel Technologies, based in Louisville Ky., processes flat-rolled steel products for the automotive, appliance, lawn and garden, agriculture, office equipment and railcar industries.
OMZ changes GDs of two units
Russian OAO United Machine Building Plant OMZ has replaced the general directors of two of its key enterprises. Mr Marek Krsek, GD of Skoda Steel, has been named head of OMZ-Spetsstal and director of the Ukrainian Konstar Mr Boris Vasilyev has been named head of Uralmashzavod.
Industry analysts tie the new appointments with the change of ownership at OMZ that occurred at the beginning of November.
Samarco's Esprito Santo pellet plant construction underway
Construction has started on the third pellet plant of Brazilian iron ore miner Samarco in Esprito Santo state as per a report in a local newspaper. Outokumpu Technology, a subsidiary of Finnish metals and mining supplier Outokumpu Group, will be responsible for building the plant, which is due to take 24 months.
The $200mn project will have capacity of 7.5 million tonnes of iron ore pellets. The investment also includes a new concentrator plant in Germano, Minas Gerais state, and a 400 kilometer pipeline. With the expansion, Samarco will increase its production capacity by 54% from the current 14 million tonnes to 21.6 million tonnes
Samarco is a 50:50 joint venture between CVRD and BHP Billiton which approved a $1.18 billion plan to boost pellet output in October. "When the third pellet plant project starts up in February 2008, Samarco will have consolidated its position as the second largest iron ore pellets seaborne supplier," Samarco said in a statement in October.
Evrazs NKMK renews ISO 9001:2000 certificate
The Evraz Group's Novokuznetsk Iron & Steel Works NKMK renewed its ISO 9001:2000 quality management certificate following an audit by Germany's TUV CERT
NKMK received the certificate at the beginning of 2005.
SMI orders Goodfellow EFSOP package for 120-ton EAF
Techint Goodfellow Technologies Inc has taken an order from SMI Texas Inc for its EFSOP system to optimize the melting process on its 120 ton electric furnace at Sequin TX.
Techint Goodfellow will install and commission the system. No timetable has been stated for the project. The Goodfellow EFSOP (Expert Furnace System Optimization Process) system monitors furnace off-gases to gather data for a continuous closed-loop process control system.
SMI is a mini-mill in the Structural Metals Inc chain, a unit of Commercial Metals Corp.
Hadeed to expand its output capacity in 2006
The existing hot strip mill of Saudi Iron & Steel Co Hadeed, with designed capacity to 1,137 million tons, is going to be upgraded in January 2006. The plan s to install the expanding equipment like reheating furnace, extra finishing stand from 5 to 6 stand, extra decoiler and offline skinpass.
The expanding equipment will help to double Hadeeds annual output of HR coil and extend the thickness range unto 1.2mm
Saudi Iron & Steel Co Hadeed is going to start its new pre-painting line in the fourth quarter of 2006
Hadeed is also reported top be considering a 1.76 million tonnes DRI unit and an extra electric furnace in 2007
