February, 28 2006
Core sector growth slows to 3.3% in January
The growth in the six infrastructure sectors slowed down to 3.3% cent during January 2006 compared with 4.2% in January 2005 due to fall in output of crude petroleum and steel and reduction in production rate in the five sectors except cement, according to an official release. Production of finished carbon steel was down by 3.8% at 3.375 million tonnes in January, 2006 against 3.510 million tonnes in the January 2005. However coal production rose by 8.2% at 38.3 million tonnes in January, 2006 against 35.4 million tonnes in the January 2005.
Growth in six core infrastructure industries, which have a combined weight age of 26.7% in the Index of Industrial Production declined to 4.3% during April-January period of this fiscal against 6.2% in the corresponding period of 2004-05. Coal production slowed down to 6% at 320.7 million tonnes during the first 10 months of this fiscal, the data showed. Steel production fell by 5.9% at 34.777 million tonnes during the first 10 months of this fiscal.
Coal shortfall in India estimated at 31 million tonnes in 2006
Coal production in India will see a shortfall of 31 million metric tons in the next financial year starting April 1, hampering the growth of thermal power generation in the country, an annual report published by the Indian government ahead of the federal budget said Monday.
"The non-availability of the desired level of coal resulted in a generating loss of 1,512 million units of power in 2004-05," said the report, which will be presented to parliament by Finance Minister P. Chidambaram Monday. The federal budget is due to be presented Tuesday.
NTPC plans JV with CIL to develop coal blocks in ER
National Thermal Power Corporation has proposed to set up a 50:50 JV coal company with Coal India Ltd to develop new coal mines for exclusively meeting the corporation's additional coal requirement at its thermal power projects in the eastern region.
It is reported that in the beginning two virgin blocks at Brahmani and Chichro Patrimal would be developed.
Survey suggests liberalization of coal mining
A survey presented in Parliament has suggested wide ranging liberalization of the coal mining activities in the country including bidding of captive blocks and permission to sell excess coal from captive mines to arrest a slowdown in the mining and electricity sectors. The poor performance of these two sectors were mainly responsible for dragging down industrial growth to 7.8% during first nine of current fiscal as against a growth of 8.6% in the same period of previous fiscal.
According to the Survey, a reversal in the slowdown of the mining sector, particularly coal, is also critical to improve coal availability for power plants. The power sector, which is striving hard to meet the widening demand supply gap, faced problems on coal supplies with several power plants remaining at the level of critical supply of coal through the year, the survey said.
According to it, one way to meet coal shortages in the country was by allowing coal mining companies engaged in captive mining to sell excess coal to any other eligible end-users. It also suggested that government should allow competitive bidding for allocation of captive coal blocks for better price realization and speedy completion of process.
Orissa urges revision of coal mine land Act
Orissa government has urged the Centre to amend the provisions of the Act relating to the coal-bearing land for the benefit of land owners and farmers. Disclosing this to the media revenue minister Mr Manmohan Samal said he had met the Union coal minister and requested for necessary amendments. The state chief secretary and revenue secretary had also written to the centre to take steps in this regard.
The minister said that as per the provisions of the existing law, the land once notified as a coal-bearing land cannot be sold out. Owners of such land would suffer losses if the land acquisition does not take place for many years after the notification.
Arcelor unveils 2006-2008 strategic plans
Arcelor has announced its 2006-2008 strategic plans to maximize return for its shareholders. Key highlights of the plan include target normalized EBITDA of Euro 7 billion with further upside potential, sustainable and resilient free cash-flow generation of Euro 4.4 billion per annum, continuation of progressive dividend policy at 30% normalized payout ratio, targeting only value accretive acquisitions with ROCE in excess of 15%, commitment to return excess cash to shareholders including all proceeds from disposal of non-core assets and a commitment to value creation.
A significant acceleration of cash-flow generation and the dynamic management of the portfolio of industrial assets are to deliver free cash-flow that will be available to increase shareholder returns.
Arcelor's growth initiatives will be executed with a disciplined focus on highly value accretive opportunities consistent with its strategic vision. The group will pursue opportunities to strengthen its global leadership in key strategic markets such as the automotive industry and will continue to seek regional leadership in profitable and high-growth areas throughout the world.
Arcelor has strengthened the performance potential of its flat stainless business through investments (Carinox steel plant in Belgium) or acquisitions (Acesita in Brazil). The group will pursue the strategic review it has engaged into in view of exploring all options that could best unlock value for its shareholders.
Four years after its creation, Arcelor has fully demonstrated its resilience across the industry cycle and delivered beyond promises. Arcelor has built an innovative business model designed to maximize cash-flow generation throughout the cycle and deliver sustainable profitability through focus on market consolidation in high margin products.
Driven by a strong industrial project, Arcelor has implemented a very active portfolio management and gives priority on value before volumes. The group has strengthened its position in flat carbon products especially for the automotive industry, successfully tapping into new growth territories (North and South America, China...). Additionally, Arcelor holds a unique market position in steel distribution around the globe and delivers a continuous strong performance in the long carbon steel business. In Latin America, Arcelor has already created Euro 3.4 billion of additional value, with further promising expansion projects underway. The acquisition of Canadian steelmaker Dofasco builds on a strategic vision of global leadership and the integration of the company into the international Arcelor industrial set-up promises strong value creation opportunities. This investment allows Arcelor to develop a major position in the world largest automotive market.
The full presentation that will be shown to investors is available on investorrelations.arcelor.com.
Mittal Steel to furnish a detailed industrial document
It is reported that Mittal Steels industrial plan for the Arcelor bid will be a bulky 100 plus page document and it will contain details about investment, growth prospects, status of staff and facilities, integration plans and strategic rationale for the Mittal Steels bid and will seek to explain what the bid will mean for the industry, the business and the steel sector of each country.
The documents will be submitted to the governments of France, Spain, Luxembourg and Belgium in meetings set to begin this week as French president Mr Jacques Chirac and other European politicians have raised doubts that Mittal Steel hasnt given any detailed industrial plan explaining the logic of its hostile bid.
While Mittal Steel has agreed to furnish the industrial plan document, there seems to be no precedent for submitting such a document. Sources say theres no prescribed form for such a document nor does it figure in the websites of any of the four governments.
Sinosteel to invest in Grange's Iron Project
It is reported that Sinosteel Corp is competing to invest in Grange Resources Ltd's $1.1 billion iron pellet project in Western Australia to secure supplies of the steelmaking ingredient. Mr Xiaofei Cui MD of Sinosteel Australia said in a recent interview that it would like as much as a 70%. Among the projects we're studying in Australia, this is one we're quite hopeful about'' Mr Cui said in Perth.It does depend on Grange because there are quite a few other companies competing for this.'' He added. Sinosteel, which shipped 20 million tons of iron ore to China last year, is looking to invest in iron ore, base metals and coking coal projects, Mr Cui said last week.
Grange's project involves building a mine at the Southdown magnetite deposit in Western Australia, which would be shipped out from the Port of Albany. The mine, which could last 22 years, may produce 6.6 million tons of concentrate a year, said Grange's CFO Mr Mark Smith. The concentrate would then be exported to a proposed pellet plant in Malaysia for processing. Construction for the plant could take between 24 to 30 months, said Mr Smith.
We do need a partner for the funding, and Sinosteel would be a good fit for Grange, but there's also other parties interested'' Mr Smith said. As many as ten companies have expressed interest in the project, said Smith. Grange is scheduled to complete a feasibility study on the project by the end of March, he said.
Chinese companies are looking to seal deals with small Australian iron ore miners to broaden their supply amid record prices.
Arcelor chairman expresses absolute confidence in strategic plan
A press release from Arcelor has informed that Mr Joseph Kinsch, Chairman of the Board of Directors of Arcelor, has been informed by Arcelor's management of its strategic plan for 2006-2008. The significant free cash flow released by this plan will be used to reward shareholders and finance the external growth of the Group through value creating projects.
The Chairman of the Board of Directors has expressed his absolute confidence in this strategic plan, which will be the subject of a detailed presentation to shareholders from the 27 February 2006, and which reinforces the Board's decision of 29 January 2006 to unanimously reject Mittal Steel's hostile bid.
The Board of Directors will submit its comments on the offer in question to the regulatory authorities of the financial markets concerned at the appropriate time.
Abare forecasts iron ore price increase by 12%
Iron ore prices are expected to rise by about 12% in the fiscal year starting this April as mine supply struggles to keep up with demand from Chinese steel makers, Australia's government forecaster said Tuesday.
Prices are expected to stay high until 2008 as the cost of adding new production and a shortage of trucks and labor limits mine expansions, the Australian Bureau of Agriculture and Resource Economics said in its March quarter report. "Beyond 2008, steel making raw material prices are expected to come under renewed downward pressure reflecting a combination of increased supply of iron ore and improvements in steel plant efficiencies," Abare said.
Chinese regulators plan 90 million closures in steel capacity
China will aggressively cut backward steel production capacity within the next five years to ease the current market glut and slowing demand for iron ore. 90 million tons of steel production capacity will be axed during the period according to a plan made by regulators, Mr Zhou Xizeng, a steel analyst with Beijing-based CITIC Securities Co Ltd said yesterday.
In the first step of the plan, regulators will soon reveal the specific number of blast cupola furnaces producing pig iron to be discarded this year, according to sources from China Iron and Steel Association. The move is expected to slash the production capacity of iron ore by 60 million tons and pig iron, raw cast iron by 40 million tons.
Sources said regulators would also enhance the steel sector's threshold in terms of technology, capital investment and environment protection. "Backward production capacity must be removed as it has triggered a serious low value-added product oversupply in the domestic market, and hurt steel prices and the sector's profits significantly," Mr Zhou told China Daily. "Meanwhile, however, production capacity of high value-added steel products which are in short supply will continue to grow rapidly to meet mounting demand, such as steel plates and sheets used in automobiles and home appliances," he said.
Total steel production capacity in China exceeds 400 million tons now. The nation's crude steel output grew by 24.56 per cent to 349 million tons last year from 2004.
SA plans to curb chrome ore exports
South Africa plans to curb chrome ore exports in order to increase the processing of ferrochrome in the country that is the top producer of the alloy used mainly by the stainless steel industry. No time frame for the planned shake-up of the sector was given in a statement from the department of minerals and energy.
"Although South Africa is a major producer of chrome, we have not as yet benefited fully from this commodity. We are not going to allow companies involved in chrome to pillage our resources for the benefit of others" Lulu Xingwana, the department of minerals and energy's deputy minister, said in a statement to chrome producers adding that "I wish to reiterate that the days of exporting chrome ore from South Africa to other countries are numbered."
The plan would be similar to one to legislate for more jewelery manufacturing and gem cutting in the diamond sector, intended to boost government revenue, create jobs and include more black South Africans in the mining industry after years of exclusion under apartheid.
NDTZ to switch to EAF and shut open hearth furnaces
Ukrainian Nizhnedneprovsky Pipe Rolling Works plans to spend about $410 million on the construction of a steelmaking facility with annual capacity to produce 1.32 million tonnes of continuously cast billets, the company said in a press release. The project will replace energy intensive, unproductive and environmentally dirty open hearth facilities with a high tech electric smelting process and continuous casting, NDTZ said.
The project will take 26 months to deliver following the signing of a contract with equipment suppliers. NDTZ said that, starting in 2004, it has selected a site for the new facility and selected Germany's SMS-Demag, Italy's Danieli and Austria's VAI as potential equipment suppliers, while Ukrgidrometiz has done a feasibility study for the project.
Using electric-arc furnaces and energy efficient technology will give the plant a certain degree of energy independence, the company said. While production will almost double, consumption of natural gas per tonne will tumble to 17.8 cubic meters from 150 cubic meters. The electric steelmaking process and continuous casting will also provide high quality pipe billets, ensuring the high quality of the finished pipe products, the release said. In addition, gross emissions of pollutants will drop by an average of more than 90%, including by 80% for carbon monoxide, 82% for nitrogen dioxide and by 22 times for ferrous oxide.
NDTZ, which is part of the Interpipe group, now has its own steelmaking facility with four open hearth furnaces and a modern out of furnace steel processing and degassing unit. NDTZ has five pipe rolling departments, a railroad wheel rolling shop and wheel tire line.
Irans Gohar Zamin iron ore company invites bids
Irans Gohar Zamin Iron Ore Company has invited international contractors to bid for the contracts to build an iron ore concentrate production plant and an iron ore palletizing plant at the Gol-e Gohar mining complex in Kerman province. Engineering, procurement and construction bids for both tenders are due to be submitted by 12 March.
Gohar Zamin plans to build five iron ore concentrate production units with capacity of 2 million tonnes per year each and two 5 million tonnes per year high grade DRI ore palletizing units. The plants will be supplied iron ore from the Gohar Zamin mine, part of the Gol-e Gohar mining complex, which is expected to come into operation by early 2008 with production of 20 million tonnes per year of iron ore.
The EPC work will take 36 months, with contract awards scheduled for 2006 and commissioning set for 2009. The successful bidder will also have to arrange project financing. According to project sources, contractors must submit proposals to bring 100% of the finance for the plants.
OSHA sets new limits on chromium exposure
The Labor Department reduced the acceptable levels of workplace exposure to cancer causing hexavalent chromium. The new rule limits worker exposure to the carcinogenic metal to no more than 5 micrograms per cubic meter of air, a large reduction from the old standard, but also a level five times higher than what had been proposed by the agency two years ago. The old standard, issued in 1971, was 52 micrograms per cubic meter of air.
Hexavalent chromium is used in chrome plating, stainless steel welding and the production of chromate pigments and dyes. An estimated 558,000 workers, from welders and steelworkers to jewelers, are exposed to its airborne particles that have been linked to lung cancer.
The new requirement "substantially reduces the significant health risks" for employees exposed to the material, said Mr Jonathan Snare, acting assistant secretary for occupational safety and health at the department, in a statement. Mr Snare said the 5 microgram permissible exposure level is the lowest level that is feasible both technologically and economically. He said the standard would cost industry $282 million a year to implement. He said it would result in the avoidance of 100 to 145 cancers a year among the nearly 67,000 workers that currently are exposed to airborne levels of hexavalent chromium of more than 5 micrograms.
But critics said the new standard still leaves thousands of workers at risk.
Danieli to design 2 casters for new Hangang plant
Danieli Davy is designing 2 two-strand slab casters for Hangang Iron & Steel's new melt shop in China's Hebei Province. The order calls for a total of fours strands to produce 5.2 million tonnes per year of ultra low carbon, low carbon, medium carbon, peritectic and high carbon steels as well as micro alloyed grades including API, automotive grades and dual phase steels. Each machine will have a vertical curved strand with a vertical length of 2.6 meters, 9.5 meters main radius and continuous bending-unbending. Maximum casting speed will top 2 meters per minutes due to a containment length of about 40 meters. Finished slabs will be 230mm and 250 mm thick and 900mm to 2150 mm wide.
The scope of design includes INMO mold and integrated hydraulic oscillator designed to incorporate electromagnetic flow control, advanced breakout and sticking prevention system with full thermal mapping of the mold, optimum segments including Danieli's Dynamic Soft Reduction capability, air-mist secondary cooling dynamically controlled by a mathematical solidification model and a continuous bending-unbending roll diagram to minimize stress on the slab during solidification.
Danieli Automation will develop and supply the automation and process control systems, up to Level 2, including the mathematical models to control the process.
Geraldton Iron Ore Alliance launches transport study
The newly formed Geraldton Iron Ore Alliance, which now includes Golden West Resources Ltd, announced at its official launch that it would be commissioning a study into the development of a strategic transport plan for the Mid West region's southern corridor. The strategic transport plan would be designed to accommodate the rapid growth of the iron ore industry over the next five years.
Alliance members have commissioned independent economic, transport and infrastructure consultants, Strategic design + Development to undertake the study.
The strategic transport plan will involve an integrated approach to:
- Urgently address the need for an investment program for the existing Westnet rail track system under conditions of uncertainty
- Sequencing of other supply chain initiatives against short, medium and long term infrastructure investment milestones, linked to tonnage projections, acknowledging limited cash flows and low start-up investment in infrastructure by Alliance mining companies
- The role of WestNet and ARG in the delivery of a rail-based transport capability in time to meet short-term needs
- Seamless integration with new transport infrastructure plans and proposals as they arise
- Supporting the Port of Geraldton with staged strategies and investments to integrate land transport to/from its hinterland
- Management of road maintenance impacts and funding issues
- A policy on the regulation of road use.
Maverick Tube to expand OCTG facilities at Prudential Steel
Maverick Tube Corporation announced that its wholly owned subsidiary, Prudential Steel Ltd will expand its oil country tubular goods finishing facilities in Calgary, Alberta, Canada in 2006. The new API threading line, scheduled to be completed in the summer of 2006, is in addition to the two existing API threading lines, and a premium threading line which was commissioned in 2002.
The expansion of the threading lines is the last phase of a $10.4 million capital expansion plan for 2005 and 2006. In August 2005, Prudential completed the first phase of the plan which included a $7.3 million expenditure to increase the pipe making capacity of its Calgary operation.
API connections are used in most conventional wells while premium connections are used in deeper wells and more challenging applications.
Mr Bob Lee President of Prudential Steel said "Demand for OCTG has increased significantly over the last year and the outlook for 2006 is very positive. With the expansion of our pipe making capacity last year and the planned threading capacity increase this year, Prudential will be well positioned to meet our customer's increasing needs for OCTG."
Prudential operates three pipe mills in Calgary with a total annual capacity of about 500,000 tons and an outside diameter range of 2 3/8" to 12". Prudential has been a leading supplier of OCTG and line pipe to the Canadian energy industry since 1966.
Maverick Tube Corporation is a St Louis Missouri based manufacturer of tubular products in the energy industry for exploration, production, and transmission, as well as industrial tubing products including steel electrical conduit, standard pipe, pipe piling, and mechanical tubing are used in various applications.
Algoma Steel hints at takeover in proxy circular
The proxy circular mailed our by Algoma Steel Inc includes an intriguing note that it has been meeting with possible buyers for the Ontario based steelmaker and has held discussions with selective third parties. And some of them have been given access to the books so they can perform due diligence. But Algoma made it clear that no deal is in the works.
Algoma disclosed the takeover interest as part of its strategy to fend off a proxy battle by a New York hedge fund Paulson & Co, which wants to place its own nominees on the Algoma board so it can strip more than $400 million from its assets and distribute the money to its shareholders. Paulson, which holds a 19% stake in Algoma, has forced the steelmaker to call a meeting for March 22, where all shareholders will be asked whether they want to elect Paulson's slate.
Algoma has been attracting interest from potential buyers since Arcelor spent $5.6 billion to buy Dofasco Inc last month, which sparked considerable interest from companies around the world, who are now looking for another North American steelmaker to buy. "Developments in the fourth quarter of 2005 and the first quarter of 2006 with respect to Dofasco Inc have generated renewed interest in possible strategic activity involving North American steel companies, including Algoma," the company stated in its circular.
PSMC Privatization Minister directs to meet deadline
Dr Abdul Hafeez Shaikh Federal Minister for Privatization and Investment has directed all the stakeholders to expeditiously resolve the remaining issues to meet the deadline for the privatization of Pakistan Steel Mills Corporation while chairing a meeting to review the progress of the privatization yesterday. The representatives of Ministries of Industries, Production & Special Initiatives, Finance, Law, Justice and Human Rights, CBR, the Chairman PSMC, the CEO of National Industrial Park and the Financial Advisors for the transaction Citigroup Global Markets Limited attended the meeting.
The Minister expressed his satisfaction over the progress made so far and said that in view of the long term impact of the privatization of PSMC every aspect should be discussed in depth to complete the transaction in a smooth and most transparent manner and up to the satisfaction of all stakeholders and the investors.
The meeting was briefed regarding the critical issues including the mutation of core land, transfer of non-core land, finalization of services agreement with Al-Tuwarqi Group, settlement of issues with CBR etc.
OYAK completes 46.12%purchase of Erdemir
Turkish army pension fund OYAK signed a share transfer deal on Monday to complete purchase of 46.12% of Erdemir after Turkish authorities had approved the sale and OYAK had paid the entire price of $2.77 billion Metin Kilci the head of the Turkish privatization board told reporters at the signing ceremony.
Under the rules of the contract, OYAK also took over a 3.17% share held by a public bank, the Turkish Development Bank, for $190.2 million.
OYAK, which represents the army pension fund, won the tender for Erdemir in October, beating giants such as Mittal and Arcelor.
Abare says thermal coal prices may fall
Thermal coal prices are expected to fall steadily in the medium term, as increases in mine production catches up to demand, Australia's government forecaster said. The Australian Bureau of Agriculture and Resource Economics didn't give a price forecast or time frame, saying only that falls would be partially offset by increasing Asian demand for thermal coal.
Australian coal exports are forecast to rise to 111.1 million metric tons in fiscal 2006, up from 106.4 million tons last year. They should rise to 113.7 million tons next year, and reach 133.2 million tons in fiscal 2011, Abare said.
Beigang Liaoning increases exports of ductile pipes by 50%
Beigang Casting Pipes Company and exported 47,000 tons of ductile iron pipes in 2005, accounting for 33% of total sales, and an increase of 50% from that of 2004. It focused on the international market developing and the pipes were exported to dozens of countries including Kuwait, Iraq, Peru and so on. In 2005, the company exported 12,000 tons of products of high technology and high value-added, amounting 25.5% of the whole export volume.
Beigang Company, founded in 1994, is mainly involved in manufacturing the ductile iron pipes with a diameter range of 80mm to 2600mm having capacity of 500,000 tons per year.
Sterling Steel commissions EWR rolling technology
Sterling Steel has started operation of its Daniel supplied EWR Endless Welding Rolling process. It is the first US application of EWR technology, which has been in successful operation at several bar mills in Europe and Asia, and at Deacero in Celaya and Saltillo, Mexico. The Endless Welding Rolling process uses welding to join hot billets, to achieve continuous rolling capability.
Sterling Steel's new EWR line is designed for automatic continuous welding of 130mm x 130 mm in 11 meters long billets of LC, MC and HC steel at rates of up to 100 tons per hour. Weight selection from these "endless" coils is made using a new Danieli shearing unit.
Danieli points out that billet welding is particularly beneficial in wire rod mills because it makes it possible to produce coils with customized weights and even extra-heavy coils, from lightweight billets.
Sterling Steel is a subsidiary of Leggett & Platt, producing wire rod products for its downstream manufacturing and operates some of the facilities of the former Northwestern Steel & Wire.
Production delay on Murchison's iron ore project
Production from the first stage of Murchison Metals Ltd's $24 million Jack Hills iron ore project has been delayed two months until August this year. The company said environmental approvals for clearing vegetation at the Jack Hills mine site would not be completed until early July, pushing first ore shipments out to August.
The start up project involves the initial production of 1.2 million tonnes of iron ore a year to be trucked to Geraldton Port, increasing to 1.8 million tonnes per year in 2008. The second stage of the Jack Hills development is targeting 25 million tonnes per year from mid 2010.
It is reported that Murchison has concluded sales contracts to cover all stage one's five year production plan already.
Coal mine roof collapse kills 2 coal miners in Vietnam
It is reported that 2 miners were killed when the roof of a mining pit collapsed a coal mine in Ha Long Coal mine in Quang Ninh province in northern Vietnam on Sunday.
According to Mr Duong Xuan Bai, head of the company's safety department the other workers were lucky because they were close to the surface when the roof collapsed and only the two dead workers were 33 meters underground.
The company is investigating the cause of the roof collapse.
Outokumpu sells brass rod mill in the UK to Meade Corporation
Outokumpu and The Meade Corporation of the UK have today signed and closed a sales and purchase agreement whereby Outokumpu sold its brass rod mill, Outokumpu Copper MKM Ltd, located in Aldridge in the UK, to The Meade Corporation. The total consideration of the transaction is some Euro 20 million and it will have a positive effect on the result of Outokumpus discontinued operations.
The production capacity of Outokumpu Copper MKM Ltd is 40,000 tonnes of brass rod and its sales in 2005 amounted to some Euro 70 million. It employs 320 people.
Outokumpu is currently implementing a vigorous improvement project in its existing copper tube and brass assets. This transaction is in line with the improvement plans and follows the earlier announced Outokumpu strategy to exit from the copper tube and brass business.
Dietrich Metal sublicenses UltraSTEEL technology to Clark Western
Dietrich Metal Framing, a Worthington Industries company announced that it has signed an exclusive sublicensing agreement with Clark Western for UltraSTEEL(TM) metal framing products using patented technology of Hadley Industries PLC. Dietrich has a licensing agreement with Hadley for exclusive rights to manufacture and sell metal framing using the UltraSTEEL(TM) technology in North America.
"This new metal framing technology will be a breakthrough product for the industry and we believe the Clark sublicensing will greatly accelerate market acceptance and availability," said Mr Ed Ponko, President of Dietrich Metal Framing.
UltraSTEEL(TM) is an internationally patented method of altering the characteristics of the base strip steel providing higher strength material. Additional benefits have been verified by independent sources and the product has received certification by Underwriters Laboratories. The product will improve speed and quality of the building process by allowing for faster and better fastening of both the framing products and wallboard. UltraSTEEL's greater rigidity and smoother edges also make handling easier and safer.
Clark Western, headquartered in Cincinnati, Ohio, with 14 manufacturing locations, is a wholly-owned subsidiary of Marubeni-Itochu Steel America.
Worthington Industries is a leading diversified metal processing company with annual sales of approximately $3 billion. The Columbus, Ohio, based company is North America's premier value-added steel processor and a leader in manufactured metal products such as metal framing, metal ceiling grid systems, pressure cylinders, automotive past model service stamping and laser welded blanks. The company operates 64 facilities in 10 countries.
Shandong Province closes 71 unsafe coal mines
It is reported that East China's Shandong Province shut down 71 unsafe coal mines, one third of its township level collieries, in 2005, said an official at the Provincial Coal Safety Supervision Bureau. The bureau's head Mr Wang Ziqi said that to make further efforts to avoid accidents, the province planned to close another 20 collieries that failed to meet the safety requirements this year.
There are lots of safety concerns in the coal mines with annual production capacity of no more than 90,000 tons in the province, since most of the coal there is excavated by hand, Wang said, adding such mines account for 58% of the total number of coal mines in Shandong.
The number of small coal pits has been slashed from nearly 1,000 at the peak period to 105, and their death rate per one million tons of coal has declined by 89.7% over the past five years.
Shandong Province, which produced 131 million tons of coal last year, has one of the finest records of coal mine safety in China. Its death rate per one million tons of coal stands at 0.25, far from the country's average of 2.811.
SIDMA opens steel centers in Bulgaria & Romania
SIDMA SA has established a network of steel trade and service centers in Bulgaria and Romania with Israeli Packer Plada as its strategic partner.
According to the GM of SIDMA Mr Daniil Bernardoute, the 5 year investment program of SID-PAC Bulgaria SA is about Euro 5 million while the investments in SID-PAC Steel & Construction Products SRL in Romania will also reach Euro 5 million.
6 killed & 12 missing in coal mine accident in Hunan
It is reported that 6 miners died in a coal mine gas surge in Dayuan Coal Mine in Longhui County in Central China's Hunan Province at the weekend. 12 miners still missing in the accident are feared to have suffocated to death. The methane gas surge happened at 5 pm on Saturday in Dayuan Coal Mine of the province's Longhui County when 24 miners were working underground. Six miners were saved.
A local official said yesterday that the missing workers were unlikely to have survived despite the ongoing rescue efforts which have been going on round the clock. "The amount of gas is too much and those missing miners were probably suffocated to death," the head of the county's coal industry bureau told China Daily.
The mine has about 150 miners and an annual mining capacity of 20,000 tons.
Vicwest Income Fund completes acquisition of NSI
Vicwest Income Fund announced successful completion of its acquisition of Northern Steel Industries Ltd for C$12 million cash and approximately C$1 million assumption of liabilities. The acquisition was financed through the Fund's existing cash reserves and through utilization of its credit facility.
Based in Tisdale, Saskatchewan, NSI is one of Western Canada's leading suppliers of above and below ground steel petroleum storage tanks. NSI holds approximately 30% of this market. The acquired business will operate as a division of the Fund under the "NSI" brand.
Mr Robert Skull President & CEO commented "We are pleased with this acquisition as it is a second step in our organizational growth strategy. It increases our participation in the strong Western Canadian oil and gas exploration market by adding additional production capacity and new product offerings and will add to distributable cash available to our unit holders."
The Fund's Vicwest operating division is Canada's leading manufacturer of metal roofing, siding and other metal building products. The Fund's storage products division operating under the name of Westeel is based in Winnipeg and is Canada's foremost manufacturer of steel containment products for the storage of grain, fertilizer and petroleum products. With recent acquisitions, the Fund has fifteen manufacturing facilities strategically located throughout Canada.
American Galvanizers Association releases corrosion guide
The American Galvanizers Association (AGA) recently produced a University Tool Kit for engineering and architecture professors. The comprehensive corrosion guides will aid professors in educating their students on corrosion protection. The free tool kit provides professors with all the resources required to present an introductory lecture on corrosion protection and the use of hot dip galvanized steel.
The kit includes a brochure providing information on the tool kit and the AGA PowerPoint course/lesson on corrosion protection, a binder containing a course outline, notes, quiz, and handouts to enhance the lesson information and an application for the AGA Galvanize the Future scholarship samples of hot-dip galvanized steel and an interactive CD on designing with galvanized steel.
"The tool kits are designed to give engineering and architecture students a general understanding of corrosion protection and hot dip galvanized steel," AGA Marketing Manager, Mr John Krzywicki said, "And by providing all the resources needed to teach the course, it allows professors to easily insert the lesson into their curriculum."
Founded in 1935, the AGA, based in Centennial, CO, is a nonprofit trade association dedicated to serving the needs of fabricators, architects, and engineers, providing technical support on today's innovative applications and state-of-the-art technological developments in hot dip galvanizing for corrosion control.
Universal Stainless increases base prices for special steels
Universal Stainless & Alloy Products Inc announced base price increases on tool steel plate products and on all premiums melted steels consisting of vacuum arc re melted and electro slag re melted steels. The increases are 5% on all tool steel plate products and 8% on all premium melted steels. These price changes are effective with shipments scheduled for March 13, 2006.
Mr Dudley J Merchant VP of Sales and Marketing, commented "The base price increases are necessary to recover rising energy and manufacturing supply costs while enabling us to continue our reinvestment in equipment and facilities to better serve the needs of our customers."
Universal Stainless & Alloy Products Inc headquartered in Bridgeville, Pa., manufactures and markets a broad line of semi-finished and finished specialty steels, including stainless steel, tool steel and certain other alloyed steels. The Company's products are sold to re rollers, forgers, service centers, original equipment manufacturers and wire re drawers.
Baffinland announces good results for Mary River iron ore test
Baffinland Iron Mines Corporation released additional encouraging metallurgical test on the drill core from the advanced exploration of Baffinland's 100% owned Mary River iron ore deposits. Comprehensive tests on Mary River samples continue to support the expectation that a majority of future output would be a premium-priced lump.
The test results support the high lump potential of zones of Deposit No 1 with high magnetite content.
Lump iron ores must have specific physical, chemical and metallurgical characteristics that define how the product will behave in the blast furnace. Reducibility or the generation of hot iron metal from iron oxide is one of several characteristics that define lump ore potential. Reducibility is dependent upon porosity, permeability, grain size mineralogy and iron content. It is important to recognize that an ore with very high iron content will generally have a lower reducibility than an ore with lower iron content since gangue contains natural fluxes that enable the reduction process.
