February, 02 2006
Indian government lends support to Mittal Steel
India's government is concerned about the attitude of French leaders toward Mittal Steel's bid for Arcelor Trade Minister Kamal Nath said on Wednesday. After a meeting with EU Trade Commissioner Mr Peter Mandelson, Mr Kamal Nath said that he had "brought to Mandelson's notice concern about comments emanating from the French government."
"India is closely watching the takeover and comments by the French government," Mr Kamal Nath said. Mr Kamal Nath said any actions the French and Indian governments take about deal must be "conducive" to business relations between the two countries. "It's a business-to-business issue," he said. "When Lafarge was taking over much of the cement industry the Indian government supported it
Former Chairman SASTC calls to cancel all MoUs in Orissa
Former chairman of the Scheduled Areas and Scheduled Tribes Commission Mr Dillip Singh Bhuria demanded the cancellation of all the MoU signed by the state government for the establishment of steel and other plants since the tribal were not taken into confidence before inking these pacts with private companies. If the tribals do not want establishment of industries in their areas the MoUs should be cancelled, opined the veteran tribal leader.
The tribal community has dignity and cant be purchased through money nor suppressed through bullets, said Mr Bhuria. He regretted that both the Union and state government had no political will to implement the recommendations of the committee on Pesa Act, headed by him.
He also urged the state government not to sign any MoU without the approval of gram sabhas in all tribal areas. Mr Bhuria said the essence of self-governance in the Scheduled Areas is that the community should have full command over industries based on local resources. However, the government had not taken the prior approval of gram sabhas before the signing of MoUs with various private companies for setting up steel plants and other industries, he noted.
Steel Ministry exploring foreign JV in coking coal
The Union Steel Ministry is exploring possibility of entering into a joint venture with foreign collaborations for coking coal mining to meet the demands against meager production in the country. "We are exploring possibilities in countries like Australia, Canada and China where availability of coking coal is abundant for joint venture with steel ministry to augment supply to the sector," Union Minister for Steel, Chemical and Fertilizers Mr Ram Vilas Paswan told reporters
He said presently India is importing about 10 million tonne of coking coal while only about four million tonnes is produced in the country towards our requirement of about 14 million tonnes.
AML Steel to set up a 2 million tonnes plant in Jkarkhand
AML Steel Limited is planning to set up a 2 million tonne integrated plant in Jharkhand, to be completed in three phases. The first phase will be set up at an investment of Rs 114 crore and work is in progress on the project, AML Steel MD Mr Ashok Agarwal told reporters .The plant, named Green Field is expected to become operational by 2007 he said.
The plant is being set up by linking itself with iron ore and coal mines and will also have a power plant to ensure continuous and cheap power supply.
Agarwal said Rs 20 crore has been contributed by the promoters of the company while Rs 50 crore will come from bank loans. The remaining fund of the Rs 114 crore, required for the completion of the project would be funded by a public issue, modalities for which are being worked out. The total investment required for all the three phases would be Rs 1,944 crore and would be completed over a period of six years
AML has plans to go in for a 'forward integration project' by setting up rolling mills at its Pondicherry unit and Karaikal
India Australia Coal & Mining Forum to boost bilateral business
Government is working on an Emergency Coal Production Plan to produce an additional 71 million tonnes of coal per year from 16 of existing mines to meet energy demand in the country. The Minister of State for Coal, Dr. Dasari Narayana Rao said this while delivering keynote address at the two-day meeting of the India-Australia Coal and Mining Forum in New Delhi
He stated that Coal India is looking at acquiring coal properties in other countries with a view to enhance energy security of our country. Government is keen to promote private and foreign investments in the mining sector in a big way and it is for the business people of India and Australia to capitalize on emerging opportunities following governments recent decision to allow 100% FDI on automatic route in the mining sector. Mr. Rao added.
Speaking at the Forum, the Australian High Commissioner to India, Mr John McCarthy said Indias mining sector contributes only a small percentage of GDP at present. It has great potential, but needs further investment. He said, Energy and resources are the drivers of the bilateral relationship.
The India-Australia Coal and Mining Forum is a joint initiative by the Indian and Australian Governments. The Forum aims at enhancing the collaborative relationship between both the countries to stimulate increased information exchange and joint projects provide an opportunity for industry to showcase expertise and capabilities and bring Indian and Australian industry, research institutions and governments together.
POSCO bent to build captive port at Orissa
POSCO has finally decided to go ahead with its proposal to set up a dedicated port and has submitted a formal application to the state government to develop a captive port at Jatadhari, near Paradip Port. POSCO says Paradip Port, besides getting seriously congested, is located quite far from the site proposed for the plant.
POSCO has three options to use the facilities that Paradip Port has to offer, set up a dedicated berth in the port, or have its own captive ports. The filing of the application makes it quite clear that the company has decided it wants a dedicated port.
POSCO proposal for setting up a captive port north of Paradip Port has resulted in objections from some quarters in past
Visakhapatnam Port creates single day coal handling record
Visakhapatnam Port, the largest bulk cargo handling port in the country, unloaded a record 29,390 tonnes of coking coal in a single day, yesterday, surpassing its previous best. The cargo imported by SAIL was unloaded from MV Yong Feng at general cargo berth with the help of two floating cranes.
The previous best of 28,315 tonne was achieved on December 15 last.
TATA Power shortlists Nagpur & Chandrapur for power plants
TATA Power Company has short listed Nagpur and Chandrapur in Vidarbha region of Maharashtra for setting up two thermal power stations of 500 MW capacities each. If they come up, these would be the first Tata plants in Vidarbha.
TPC is conducting an inspection in both the areas and would firm up its decision within 6-7 months. Once the site is finalized, it would take around 3 to 4 years for the plant to become fully operational. It is learnt that the power plants will require around 700 acre of land each. Other factors such as availability of coal, water, as well as facilities for disposal of fly-ash will also be considered.
France & Luxembourg oppose Mittal Steel bid
The rhetoric in Europe's five-day-old steel war has risen to a new pitch as two of the three European nations that gave birth to Arcelor four years ago struggled to find concrete ways of blocking the bid. France and Luxembourg pledged to defend Arcelor on Wednesday against a $24 billion bid by Mittal Steel.
"This hostile bid by Mittal Steel calls for a reaction that is at least as hostile," Luxembourg Prime Minister Mr Jean-Claude Juncker said after meeting French President Mr Jacques Chirac. Politicians in both countries have voiced concerns that a takeover could threaten tens of thousands of European jobs. Mr Juncker said he and Mr Villepin had a common response to Mittal without saying what it was.
Political and financial analysts say the French government has little leeway beyond the power to create significant political nuisance for Mittal, whose company is Dutch. If the bid succeeds, French Prime Minister Mr Dominique de Villepin will have little to show for a year-long "economic patriotism" campaign to prevent hostile foreign takeovers.
Mr Juncker was also in Brussels in a bid to persuade Belgian Prime Minister Mr Guy Verhofstadt to join the opposition camp. But Mr Verhofstadt was reluctant to be drawn. "We have agreed to name investment bankers to help us assess the deal," he told reporters after the meeting. The French-speaking Walloon region in Belgium, the fourth-biggest owner of shares in Arcelor with a stake of 2.3 percent, has held off from joining the opposition.
He meets European Commission President Jose Manuel Barroso on Thursday when Mittal is due in Spain where the government has been cautious on the deal.
Arcelor shareholders have to finally decide - Mr Mittal
In spite of the opposition from Luxembourg government, Mr LN mittal refuses to be cowed down and vowed he would not be intimidated. "I'm not really scared about politicians' reactions. I'm sad about it," he told reporters in Brussels
"Only three days have passed since the launch of the public offer for Arcelor... The comments made by politicians only go to show that we have not yet showed them our industrial plan; that will come in time," Mr Mittal said.
Mr Mittal said at this evening's press conference that the steel giant is "very confident of succeeding," adding that the Arcelor shareholders which Mittal has already met with are "very satisfied." "At the end of the day, they are the people who will decide," he said. "Shareholders whom we have met generally are very, very satisfied, very positive about the whole deal and at the end of the day shareholders will decide...we are confident we will succeed," Mr Mittal said.
Mr Mittal said that the entire industry is in the midst of a new wave of consolidation that was needed to safeguard European jobs. "We believe consolidation is a good step for the industry," he said. Cost-savings would come from slimming down the companies' purchasing, distribution and operational businesses, not from layoffs, he said.
He also reiterated he would not accept a stake of less than 50.1% in the merged company and that he would move the head office of Mittal Steel to Luxembourg if it succeeds with its bid.
Arcelor CEO needs support from another 35% stakeholders
Arcelor CEO Mr Dolle said he needed to convince a further 35% of shareholders the future of Arcelor was as a stand-alone company.
The state of Luxembourg, the Spanish Aristrain family and Arcelor and its staff own a combined 16.7% of the world's number two steel maker and an additional camp of 35% would create a majority to block the bid.
An Aristrain family spokesperson said it had voted to oppose the Mittal bid at a board meeting but declined further comment.
Russian Metalloinvest interested in Highveld
Holders of Metalloinvest intend to bid for 79% in the world vanadium leader, Highveld Steel & Vanadium Corp, competing with Mittal Steel. The steel division of Anglo American, Highveld is of particular interest to Metalloinvest holder Alisher Usmanov and his partners. We have been added to the short list, said a source close to Metalloinvest, confirming the plans of the company related to Highveld.
In view of the offered size of the stake in Highveld, its acquisition could become long-term investment for Usmanov, unlike the speculative deal for buying 13.4% in Corus, said UFG analyst Mr Alexander Pukhaev.
Metalloinvest is eyeing Highveld Steel primarily because of its leadership in vanadium production in the world, specified Denis Nushtaev from Metropol Capital Co
West Virginia Governor seeks halt in coal production
West Virginia Governor Mr Joe Manchin called for all coal companies in West Virginia to halt production and perform safety checks. "We're going to check for unsafe conditions, and we're going to correct any unsafe conditions before we mine another lump of coal," Mr Manchin said.
"West Virginia remains committed to putting the safety of every one of our miners first and foremost, far above any production that might come from that mining operation," Mr Manchin said at a news conference. The governor said he did not know how long it would take the state's 229 surface and 315 underground mines to conduct safety checks, which would include reviewing mine conditions, safety checklists and designated escape routes.
USW express support to Mittal Steel
The United Steelworkers International Union expressed support for Mittal Steel's proposal to merge with Arcelor. "We supported Mittal's acquisition of International Steel Group, and we see the same benefits in this combination," said Mr Leo W. Gerard, USW president. "The steel industry needs much more consolidation in order to remain strong over the long term," he added. "We've said for a long time that there aren't too many steelworkers; there are too many companies."
Mr Gerard noted that much of the shop-floor management in Mittal's plants today is in the hands of the workers, rather than front-line supervisors. He added that Mittal has invested extensively to position itself at the very top of the value chain. "We've had a few differences over issues from time to time," Mr Gerard said, "but we have worked them out in a constructive and positive manner. In our experience, Mittal is a company that lives up to its commitments to employees and communities, as well as its other stakeholders."
Mittal Steel to hold talks with Spain's Minister
It is reported that Mr LN Mittal CEO of Mittal Steel, which has made a $23 billion hostile bid for Arcelor, will hold talks in Madrid on Thursday with Spanish Economy Minister Mr Pedro Solbes. Economy Ministry spokesman declined on Wednesday to give any further details of the time or place of the meeting and said there would be no media coverage.
France and Luxembourg pledged on Wednesday to defend world number two steel maker Arcelor against the bid, which European politicians fear could threaten tens of thousands of jobs. But Spain has been more circumspect so far. Mr Solbes said on Monday he wanted more information on what Mittal's bid meant for workers in Spain. "What we have to know is what this means for jobs, in terms of activity in Spain, in terms of the project," Solbes told reporters. "However, the final decision is up to shareholders." "We will study the problem calmly," Mr Solbes said, adding that the European Commission was responsible for competition aspects of the proposed deal.
Mr Mittal has also called a news conference at 11AM local time on Thursday at a Madrid hotel to give details of the bid.
PSMC Privatization Sell off date after settlement of all issues
Pakistans ministry of industries and production and the Privatization Commission have decided not to issue any new date for the privatization of Pakistan Steel Mills till the settlement of all outstanding issues pertaining to the deal
Minister of Industries and Production Jahangir Khan Tareen and Minister of Privatization and Investment Dr Abdul Hafeez Sheikh will take up the issue on Friday at a meeting of inter-ministerial steering committee on the privatization of Pakistan Steel. This will be the third meeting of the committee. According to the tentative agenda of the meeting, the committee will take up transfer deed relating to the transfer of non-core land and assets from the PSMC to the government. The transfer deed will also incorporate the PSMCs future obligations with respect to supply to utilities downstream industrial park and the township.
There are serious differences between the government of Sindh and the ministry of industries over the deal. The Sindh government has been asking the federal government that 14,663 acres of non-core land of PSMC should be reverted to Sindh government since the province had given the land to the PSMC. The inter-ministerial meeting in December had agreed, in principle, that out of the nearly 19,120 acres of land that the PSMC owns, only 4,457 acres would remain with the company and would be sold to the investor together with PSMC.
Initially the date for the privatization of the Pakistan Steels was planned to be finalized by December 31. However, the Privatization Commission and ministry of Industries failed to meet the deadline. Then it was told that deal will be finalized by January 31, and once again, the deadline could not be met
World's widest continuous caster commissioned at Anyang
SMS Demag Germany has successfully commissioned the single strand continuous caster for ultra wide medium slabs at Anyang Iron & Steel Company in China. The continuous caster will produce ultra-wide medium slabs between 1,600 and 3,250 mm at a thickness of 150 mm thereby boosting Anyang's production capacity by around 1.1 million tons per year.
The slab caster is designed as vertical bending unit with a vertical length of 2.5 meters and a metallurgical length of 18.6 meters. Its maximum casting speed is two meters per minute. The new slab caster will produce a large variety of high-quality steel grades ranging from high-strength structural steels to pipe qualities. The slabs produced by the caster will then be processed further by hot charging in the Steckel mill to yield plates and hot strip.
The scope of supply includes the basic and detail engineering, the moulds, a spring-guided resonance oscillator with hydraulic actuator, supervision of fabrication and erection, and commissioning plus supplies and bought-out items for local fabrication. SMS Demag has also supplied the entire electrical equipment and automation system starting with the basic automation and technological control systems and extending to the technological process models (Level 2).
A particular feature of the caster is the SMS Demag-developed Breakout Prediction System (BPS) and SMS Demag's Mould Monitoring System (MMS). By creating a "transparent" mould the systems provide the customer with real-time full visualization of the casting process. In order to optimize the pattern of the steel flowing into the mould on the world-record casting width for the achievement of defect-free slab surfaces, a new Submerged-Entry-Nozzle (SEN) was developed.
The caster is equipped with an air-mist type secondary cooling system, width-dependent spraying system and a hydraulic segment adjustment facility plus dynamic soft reduction for an improved internal quality of the slabs.
SMS Demag AG forms part of the Metallurgical Plant and Rolling Mill Technology Business Area of the SMS group.
Mittal Steel to notify EU Commission on its bid for clearance
Mittal Steel will notify the European Commission of its hostile takeover bid for rival Arcelor within the next two weeks, said CEO Mr LN Mittal. Following his meeting with EU competition commissioner Ms Neelie Kroes, Mr Mittal said the company is hoping for a "satisfactory response" from the EU regulator, which will study the dossier for an initial 25 days once formal notification has been given.
Her spokesman noted that only the EU executive had the power to block the deal for competition reasons. "Member states cannot intervene on competition grounds on mergers of European dimension," spokesman Mr Jonathan Todd said.
At the end of its initial probe, the commission can decide to clear the deal, conditionally clear the deal or open an in depth probe lasting up to four months if there are serious competition concerns.
CITAC Cheers Byrd Amendment Repeal by Congress
Congress today finally approved repeal of the Continued Dumping and Subsidy Offset Act, commonly known as the "Byrd Amendment" with the 216-214 passage of The Deficit Reduction Act of 2005 by the House of Representatives. Repeal of the Byrd Amendment is a provision of the legislation, which was already passed by the Senate, and now goes to President Bush for his signature. In a compromise reached between House and Senate conferees, the repeal will be delayed for two years and Byrd Amendment distributions will continue for entries made prior to October 1, 2007.
Since 2001, more than $1.26 billion has been distributed under Byrd Amendment rules, with more than one-third, or $476 million, going to a single corporation, the Timken Company, and two of its subsidiaries. More than half of the $226 million of Byrd Amendment payouts in 2005 went to five companies, and 80% percent of the payouts went to only 34 companies. Three industries benefited the most from Byrd payments: bearings, candles, and steel.
"CITAC congratulates Congress for repealing the Byrd Amendment," said CITAC ED Mr Steve Alexander. "As recently as last month, many experts were saying we would never obtain congressional repeal of the Byrd Amendment during the current session. We congratulate the numerous consuming industries, consumer groups and organizations that worked together so well to make this day possible. CITAC is proud to have taken a leading role in this effort."
CITAC is a coalition of companies and organizations committed to promoting a trade arena where US consuming industries and their workers have access to global markets for imports that enhance the international competitiveness of American firms.
OMZ to supply iron ore palletizers Lebedinsky GOK
Uralmashzavod, a part of OMZ-Uralmash-Promuslugi, a division of OMZ has concluded two contracts for the supply pelletizer of 7.5 meters diameter and 88 kilning trolleys, weighing 543 tons, to Lebedinsky Mining and Processing Combine Lebedinsky GOK.
Lebedinsky GOK plans for modernization of it palletizing plant. In particular, the trolleys are designed for OK-306 calcining machine produced by Uralmashzavod in the 1970s. The frames for the kilning trolleys will be produced from steel with higher alloy content. This will allow a longer service life in conditions of cyclic heat demand. Similar kilning trolleys are supplied by OMZ to another Russian company, Mikhailovsky Mining and Processing Combine.
Lebedinsky GOK is Russias biggest iron ore producer.
Uralmashzavod specializes in the custom production and assembly of components based on customer-supplied engineering. Among other things, it produces mining, metallurgic and chemical-recovery equipment, handling machinery, hydraulic turbine equipment, cement furnaces, and auxiliary equipment for nuclear power plants. OMZ Uralmash-Izhora Group is one of the largest Russian heavy industry enterprises.
Court clears the way for Stelco to sell Stelwire to Mittal Steel
An Ontario judge has loosened the court's grip on Stelwire Ltd, paving the way for Stelco Inc to sell the steel wire business to Mittal Steel. Ontario Superior Court Justice James Farley granted Stelco a court order Wednesday that effectively removes Stelwire from bankruptcy protection.
Having received government approval, the only impediment left under the terms of the deal was that Stelwire is still under Stelco's bankruptcy protection order. Mittal Steel required a guarantee that the subsidiary would not be liable for additional claims. Judge Farley's ruling will remove Stelwire from much of the protection afforded to Stelco under the Companies Creditors Arrangement Act. The judge said that will allow Stelco to close the deal with Mittal Steel.
Mittal Steel agreed to buy three of Stelco's subsidiaries in November. Two of the businesses Stelfil Ltee in Lachine Que and Norambar Inc in Contrecoeur Que are not covered by Stelco's bankruptcy protection.
Mittal Steel would like the closing date on the acquisition of all three businesses to be January 31 for accounting reasons, its lawyer Mr Tony Reyes, said after court. Mr Reyes said Mittal hopes to have the paper work done Wednesday, while the closing date will remain January 31.
Keep off our cash flow - Arcelor CEO
CEO of Arcelor issued a warning over the impact of Mittal Steel's takeover bid on his company's cash flow on Wednesday, saying it would be diverted into rebuilding old Mittal Steel plants.
"Mittal Steel has invested little in its plants," Mr Guy Dolle said on Radio Classique. Its owner Mr LN Mittal wants to modernize obsolete plants in order to produce high-value specialized steel of the type Arcelor produces, meaning he will need to use Arcelor's cash flow, he said. "It is better that Arcelor's cash flow goes to Arcelor shareholders via its own industrial projects," he said.
A Mittal spokesman immediately responded that the company had "a very strong cash flow which has supported a strong investment program over a number of years."
Rio Tinto wins part of $700 million coal deal
Mining giant Rio Tinto has won part of a $700 million deal to deliver over eight million tonnes of thermal coal to the Mexican Federal Electricity Commission. Rio Tinto subsidiary Coal and Allied will ship 4.29 million tonnes of coal to the Petacalco power plant in Mexico between March 20, 2006, and August 23, 2007, a Coal and Allied spokesman said.
Federal Resources Minister Ian Macfarlane valued the deal to deliver the eight million tonnes of coal at around $700 million. "From Australia's perspective Mexico is developing into a significant energy market and this coal deal, which is a 16 month contract worth about $700 million, further cements our relationship," he said.
The coal will be sourced from mines in NSW. "The deal represents diversification for Coal and Allied into Mexico, which is a healthy and robust new market," the Coal and Allied spokesman said.
Court upholds ruling for UMW in Sago probe
A federal appeals court on Tuesday declined to block a judges ruling allowing United Mine Workers representatives to take part in the Sago Mine disaster investigation. The U.S. 4th Circuit Court of Appeals turned down International Coal Groups request to suspend the lower-court ruling pending a full appeal.
Last week, U.S. District Judge Robert E. Maxwell in Elkins upheld the right of several Sago miners to designate the UMW as their representative in the investigation.
Mine owner International Coal Group had objected to the UMW taking part, saying that the union wanted to use the investigation to jump-start organization efforts at the mine. ICG officials refused to allow union safety experts onto company property to go underground, forcing the U.S. Mine Safety and Health Administration to seek an injunction from Maxwell.
Green Rules could close 500 US Coal Plants - Study
Pollution laws including the Clean Air Interstate Rule that caps emissions of smog components sulfur dioxide and nitrogen oxides could shut nearly 500 plants in 25 states in US, according to the study by Colorado-based E3 Consultants, which advises energy companies. Mr Jim Short, one of the report's authors, said states most hit would be Texas and most of the states east of the Mississippi.
Companies with aging coal plants may have been betting that NOX and SOX emissions markets would allow them to simply buy credits from newer cleaner plants for the right to pollute. But they could be mistaken, said Mr Short.
The study, which was funded by E3, said that capital and construction costs to build cleaner new plants could reach well over $50 billion over the next five or 10 years. E3 believes that most of the old plants will be replaced by cleaner coal plants that can burn the fuel more efficiently and to which carbon dioxide capturing can be added more cheaply than conventional coal plants.
Mechanical tube hike proposed by V&M
It is reported that North American seamless mechanical tube maker Vallourec & Mannesmann Tubes wants to reestablish higher mill prices this spring after months of market-driven price tags. The Houston-based tube maker plans to increase base transaction prices on carbon steel seamless mechanical tubes by an average $100 per ton with May deliveries. The firm also wants to boost alloy steel grades by $150/ton.
Purchasingdata.com reports that mechanical tubing transaction prices averaged $980/ton in the first several months of 2005 before beginning a decline that settled into a second-half average of $837. This shows that substantial price increase announcements in the summer of last year were generally ignored by buyers. Note that buyers reported a January 2006 price of $83
S Africa's Highveld doubles earnings on vanadium
Brisk vanadium sales helped the world's top producer of the alloy, South Africa's Highveld Steel & Vanadium, to more than double its 2005 headline earnings per share to 1,739.8 cents from 880.8 cents in 2004. Headline earnings, the main measure of profit in South Africa, strip out capital, non-trading and certain one-off items jumped as the weighted average price for ferrovanadium in 2005 rose to $59 per kg of vanadium from $20 per kg in 2004.
A significantly improved market for the group's range of vanadium products contributed to more than a doubling of headline earnings to 1.7 billion rand from the 866 million rand in 2004, the group said.
Vanadium is an alloy used to add strength to steel.
Corus to invest in tinplate line at Trostre
Steelmaker Corus says it is to invest 700,000 on machinery to keep its tinplate works in Llanelli competitive. A company spokesman said the investment would be used to upgrade a coil inspection facility and introduce a new weigh bridge. "It's good news for the plant and will help keep it competitive," he said.
Trostre is part of Corus Packaging Plus which makes products used in the beverage and food industries.
French carmaker wants more competition among steelmakers
French carmaker PSA Peugeot Citroen wants more competition among steel producers, CEO Mr Jean-Martin Folz said but he refused to take sides in the Mittal-Arcelor standoff. "As a car manufacturer I have no opinion on Mittal's bid for Arcelor," Mr Folz told reporters "My only concern is getting as much competition as possible between steel manufacturers."
"Arcelor is a significant supplier to us and I believe a significant supplier to all car manufacturers in Europe, but it is not our sole manufacturer by far," Mr Folz said. PSA does not buy steel from Mittal, he said. Mr Folz said PSA had finished negotiations with steel suppliers but gave no details on how they would affect the group's steel bill this year before it unveils 2005 earnings next week.
Hyundai Hysco develops pre-sealed steel for autos
Korea's fourth largest steelmaker, Hyundai Hysco Co said that it has developed a new type of steel plate for cars that will prevent them from rusting. The pre-sealed steel plate will improve cars' durability by making cars rust free for 20 years, compared with the current six years, the company said.
Moreover, the new steelmaking technology is expected to cut down automakers' production costs by eliminating the process of waterproofing connected parts that rust easily, such as fenders and the lower edge of doors.
"We're anticipating higher profitability by supplying high-value-added products for luxury cars starting next year," said spokesman Mr Kim Byeong-gyu. "With our advanced technology, we want to take a larger market share." By 2014, the domestic market for pre-sealed steel plates will likely amount to 1 trillion won ($1 billion), the company said.
Pre-sealed steel plates are already in use by overseas carmakers to produce luxury cars, including BMW and Lexus sedans, the company said.
Kurum Steel halts operations at Albania
A Turkish-owned steel plant in Albania halted operations Wednesday, blaming the move on higher electricity costs and transport charges, and lower import tariffs. Kurum Steel Co said it would not reopen unless custom tariffs were raised to at least 15%, to avoid Albanian companies ordering steel from outside the country, and also called for the exclusive use of lines on the Albanian railway network.
Kurum has a 1,000-strong work force, making it a major employer in one of Europe's poorest countries. It has invested some Euro 65 million since 1999 in its Elbasan facility plant manager Zekia Kaya said. Kurum produces up to 400,000 tons of steel annually.
Erdemir off watch by S&P with 'BB-' rating & outlook negative
Standard & Poor's Ratings Services announced it removed its ratings on Turkey-based steelmaker Eregli Demir ve Celik Fabrikalari TAS Erdemir from Credit Watch where they had been placed with negative implications on October 5, 2005. At the same time, S&P's affirmed its 'BB-' long-term ratings on Erdemir.
The outlook is negative. The CreditWatch resolution follows the completion of the privatization of Erdemir. "The negative outlook reflects our concerns that Erdemir will endure negative free cash flows for the next few years," said Standard & Poor's credit analyst Mr Karlsson. This is expected as a result of Erdemir's heavy capital expenditure plans, combined with expected need to pay higher dividends to its new owners to service the SPV's heavy debt burden. This could make Erdemir's rating more sensitive to a downturn in the price of steel. Increased sensitivity to steel prices could result in a downgrade in the next 18 months.
The outlook could be changed to stable if Erdemir is able to generate positive free operating cash flows on a sustainable basis.
Nizhny Tagil outlines projects for 2006
Nizhnetagilsky Metallurgichesky Kombinat JSC, a member of Evraz Group, has defined the main objects of reconstruction for 2006, reports PR-department of the company.
The fifth coke furnace battery shut down in July 2005 will be set in operation. The company also hopes to finish construction of the fifth blast furnace complex. The steelmaking shop will acquire a new circulation vacuum vessel to be used for degassing of molten steel.
The company will also proceed with reconstruction of wheel flange and tread shop. A new heating furnace as well as the second ultrasonic wheel check plant are going to be installed in the wheel rolling production sector and a new line of outgoing inspection processing is to be erected in the tread band production sector.
UKs ZincOx negotiating to buy Big River Zinc
UK based ZincOx confirmed that their company is negotiating to purchase Sauget based Big River Zinc. ZincOx spokesman Mr Peter Wynter Bee said, "The Company can confirm that it is in preliminary talks with Big River Zinc Corp. regarding the potential acquisition of the smelter from the parent company Korea Zinc Limited." He cautioned that the deal is far from complete. "These talks are at an early stage and may or may not lead to the acquisition going ahead," he said.
Big River Zinc President Mr George Obeldobel said that a preliminary agreement had been reached to sell the plant and keep it open. He said if the deal goes through that the factory, which was to shut down permanently this month, would reopen in April and would eventually rehire all of its 300 workers.
Meanwhile, Big River's biggest customer US Steel which runs a steel mill in Granite City said that it has found another supplier of zinc. US Steel bought about 80% of the zinc for galvanizing operations in past but it was forced to switch supplier due to uncertainty in Big River
Mittal Steel to file bid with US SEC within two weeks
Mittal Steel will file relevant documents for its bid for Arcelor with the US Securities Exchange Commission SEC within two weeks, as per an announcement from CFO of Mittal Steel. "We should be filing the other documents with the SEC within the next couple of weeks," Mr Aditya Mittal told reporters.
The SEC is the U.S. securities regulator and it oversees stock sales in the United States. Mittal is listed on the New York Stock Exchange.
Timken reports Q4 results
Timken Cos earnings rose 47% to $94.9 million from $64.4 million a year earlier. Sales rose 7.6% to $1.28 billion. For the fourth quarter, analysts said despite a strong performance by the company's steel division, overall results suffered from rising raw material prices and problems in the automotive and industrial divisions.
Timken Co gave a disappointing outlook for 2006, sending shares of the maker of bearings and alloy steels down 14%. The company said operating performance improvements this year will be constrained by investment in boosting efficiency and profits, growth initiatives in Asia, and the expensing of stock options.
CEO Mr James Griffith said "The only market where we're seeing real weakness is Detroit," referring to the ongoing woes facing the US auto manufacturers, in particular General Motors Corp and Ford Motor Co, which both recently announced restructuring plans that will lead to annual unit production reductions of more than 2 million. Weaknesses in business "are being dealt with aggressively," Griffiths said. "We are either fixing these businesses or exiting them."
Bekaert acquires Delta Wire in the US
Bekaert announced that it had acquired Delta Wire Corporation for an enterprise value of $10 million. The acquisition of Delta Wire brings to eight the number of production plants for advanced wire products operated by Bekaert in the United States.
Delta Wire will continue to operate in its current capacity, so this transaction will have no impact on supplies to customers. Mr Rick McWhirt GM steel cord products North and Latin America, stated: With this acquisition, Bekaert wants to support its market share growth and adequately ensure product availability to its existing and future customers.
Delta Wire Corporation, located in Clarksdale in Mississippi is a major supplier of bead wire for tire reinforcement, as well as of a wide range of specialized wire products for the North American market.
Illinois coal mine closed due to high carbon monoxide levels
A central Illinois based Freeman United Coal's Crown Three mine near Girard coal mine was closed today and 90 workers were evacuated when higher than normal levels of carbon monoxide were detected during a union mine examiner's routine inspection.
United Mine Workers union spokesman Mr Gary Butler says levels of carbon monoxide were about two thousand parts per million, or about five times the level considered safe for humans.
Harsco reinforces presence in China
Worldwide industrial services and products company Harsco Corporation announced that it has opened a representative office in Beijing to oversee the development of Harsco's future business growth in China. "Setting up this centralized modest office in Beijing indicates Harsco's commitment to doing business in China and formalizes that part of our international growth strategy," said Harsco Chairman and CEO Mr Derek C. Hathaway.
Harsco's presence in China spans a number of the company's business unit. Harsco's MultiServ mill services division has been providing on-site, outsourced services to the Chinese steel industry for more than 15 years. The division currently serves two large Chinese steelworks, Tangshan and Hangzhou, where it provides a range of on site material handling and other basic mill services under long term contracts
Harsco announced at its recent Annual Analysts Conference that it is pursuing several opportunities for additional project growth in China with other leading steel producers.
Armtec closes acquisition of Alberta pipe maker
Armtec Infrastructure Income Fund announced that has closed the acquisition of the Construction Products Division of Twister Pipe Ltd of Calgary, Alberta.
"The increase to monthly distributions reflects the continued strength in Armtec's business and our ability to execute our growth strategy," said Mr Charles Phillips, President and CEO of Armtec Limited Partnership. "The acquisition of Twister's Construction Products Division strengthens our presence in Alberta and improves our access to a broad and fast-growing customer base."
Twister has been a manufacturer and supplier of a wide range of highway construction products since 1976. Twister highway construction products include corrugated steel pipe (CSP), structural plate CSP, flared end sections, guardrail, water control gates, agricultural ventilating pipe, specialty CSP fittings and custom fabrications.
Armtec is a leading manufacturer and marketer of drainage products and engineered solutions for infrastructure applications in a diverse cross section of industries, including the public infrastructure market and private sector markets such as natural resources, residential drainage and agricultural drainage in Canada.
