March, 21 2006
Bharat Forge's Chinese JV inaugurated
Bharat Forge Ltd has announced that FAW Bharat Forge (Changchun) Co Ltd, which has been set up as JV between itself and China FAW Group Corporation, the largest automotive manufacturing group in China, has been formally inaugurated. The JV has received the necessary regulatory approvals in China. Bharat Forge is the majority partner in the Indo-Chinese venture with a 52% and 48% by China FAW Group Corporation.
The JV will be engaged in manufacturing highly engineered critical and safety components for the automotive industry. The JV will focus on offering its range of products and services to FAW Group Corporation and the other automotive groups operating within China. The JV will progressively position itself as the competitive cost producer of highly engineered forgings for the International market and also focus on the non automotive business in the fields such as railways, mining & construction equipment, steel mills, power plant, marine applications and the oil & gas business.
Speaking on the occasion Bharat Forge Chairman Mr Baba Kalyani, said, "This is a momentous occasion in the history of the two great countries, India and China as well as the two companies the Bharat Forge and China FAW Group Corporation. We are committed to make this JV a success and I would, together with my counterpart in China, work closely on transforming the JV into a global player in its field of operations."
He added: "If anybody wants to be a significant player in the automotive component business, like we want to be in our area, it would be very hard to do this without being in China. I think being in China kind of completes the whole global strategy for Bharat Forge," Mr Kalyani said. "If you're not here, then I think you're going to lose out as a global supplier.
New policy for captive coal blocks on the anvil
It is reported that Mr Shibu Soren union minister for coal has recommended the proposal to bring in competitive bidding for captive coal blocks instead of the inter ministerial screening process followed now. The proposal would be taken up by the Cabinet shortly. If implemented power, iron & steel and cement companies would have to pay a premium to carry out captive coal mining. Government hopes, that this would prod companies to look at joint ventures with foreign mining companies, and bring in FDI.
Coal blocks are allotted only to certain core sector consumers like power, iron & steel and cement companies for captive mining. These companies will now vie with each other for 30 coal blocks that are to be offered for competitive bidding. Competitive bidding will mean that the core sector consumer who offers the highest price would be allotted the block. Bidders have to furnish bank guarantees equivalent to the royalty of one years estimated production of coal from the captive block. Those who participate in competitive bidding also have to give a clear mine development plan and strictly adhere to it.
So far, the government has identified 148 blocks for captive mining. Of the 141 in Coal India command area, 91 blocks have been allotted. Out of the 50 remaining blocks, 20 have already been offered for captive leasing. So the balance 30 that are yet to be given out would be offered through the competitive bidding.
Ratnamani Metals & Tubes secures order for 120 crores
Ratnamani Metals and Tubes Ltd said that it has secured orders aggregating Rs 120 crore in the last week.
The company bagged a single order worth Rs 90 crore from a petrochemical company and two export orders, for supply of stainless steel tubes, worth Rs 30 crore from European companies.
TATA Power to build thermal power plant at Trombay
Tata Power Company Ltd announced that it is setting up a new 250 MW power plant at its Trombay Thermal Station. The setting up of the new power plant will help augment power supply to Mumbai, Tata Power said in a statement.
The 250 MW Unit # 8 will use imported coal with very low sulphur and ash content, given strict adherence to environmental guidelines, Tata Power said. The total investment in the project is expected to be around Rs8.6bn. The project is scheduled to be completed in 28 months.
Mr Adi Engineer Director of Tata Power said "The announcement is a significant step in augmenting power supply to Mumbai. We look forward to continued support of the Maharashtra Government in facilitating this as also our further plans for power generation in Maharashtra".
IVRCL to set up TLT unit in Nagpur
IVRCL Infrastructures & Projects Ltd announced that it is setting up a steel fabrication and galvanization unit at an estimated cost of Rs 10 crore for manufacturing transmission line tower parts in Butibori Industrial Area in Nagpur Maharashtra.
The unit is expected to commence production during the third quarter of 2006-07 and would have an installed capacity of 24,000 metric tons per annum.
Bharat Forge denies ThyssenKrupp deal
Bharat Forge denied that it was close to buying the steel forging units of German industrial group ThyssenKrupp, according to Reuters. "I think that was a lot of speculation on behalf of some media," Chairman Mr BN Kalyani told Reuters. "There's no truth in that."
The report said that India's Economic Times newspaper reported last week that Bharat Forge was likely to buy its German rival's forging businesses in the United States and Europe for more than US$1.5bn.
Government to take measures to curb illegal coal mining
Government has decided to constitute a high level committee, to prepare a blueprint to check rampant illegal coal mining in the country.
The committee, to be chaired by minister of state for coal Dasari Dr Narayana Rao, will submit its report within a month from its constitution.
As per the terms of reference for the committee, it would identify areas most susceptible to illegal mining, both in the leasehold area of coal companies and outside the leasehold areas and suggest measures to bring this activity to an end.
Around 15 to 20 million tonne of coal are illegally mined annually by the coal mafia that has a strong hold in the coal bearing regions, especially in Jharkhand and West Bengal.
Besides, the committee will also address the issue pertaining to implementation of specific technological innovations to effectively seal the abandoned mines. This is essential as abandoned mines are prime areas for illegal mining where both environmental and safety concerns are sidestepped.
Coal and lignite production up in February
Coal India Ltd and Singareni Collieries Company Ltd have together recorded an annual output of 35.14 million tonnes in February, 0.43 million tonnes more than targeted production of 34.71 million tonnes.
Both CIL and Singareni produced 32.29 million tonnes of coal in the year ago period, an official statement said.
Coal dispatches to power sector during the month was 22.94 million tonnes as against 23.17 million tonnes in the same month last year.
Meanwhile, Neyveli Lignite Corporation has produced 1.75 million tonnes of lignite against the targeted 1.60 million tonnes in February.
Mr Aditya Kashyap joins Varun boardMr Aditya Kashyap joins Varun board
Mr Aditya Kashyap, former joint MD of TATA Steel and MD of Mobar, has joined the board of the Mumbai based Varun group, which is exploring investment opportunities in Bengal.
Varun Group has recently diversified into power generation, mining and real estate businesses.
Varun group is the largest exporter of stainless steel kitchenware and household items. The groups exports of more than Rs 600 crore accounts for over 80% of the countrys total exports of Rs 800-900 crore. The group, which has been outsourcing from small units for exports, has put up its own plant that will become operational next month.
Global crude steel production up by 4.9% in February 2006
World crude steel production for the 61 countries reporting to the International Iron and Steel Institute was 89 million tons in February, higher by 4.9% than February 2005 but lower by 5.6% than 94.2 million tons in January 2006. Crude steel production during January to February 2006 amounted to 183.212 million tons up by 4.7% over corresponding period last year.
The crude production recorded positive growth during February 2006, over February 2005, in EU(25) by 0.4%, CIS by 1.1%,Asia by 12.1% and Oceania by 1.8%. Whereas negative growth is recorded in North America by 4.1%, South America by 12.3%, Middle East by 7.5% and by 2.4 in Africa.
The countries which recorded growth over February 2005 are led as usual by China which produced 29.5 million tons an increase of 17.0%. India produced 3.245 million tons, an increase of 15.4% over February 2005. During the first two months of 2006, China has produced 50.273 million tons and India has produced 6.839 million tonnes registering growth of 18.6% and 16.6% respectively over the corresponding period last year.
Report suggests that Mr Abramovich to acquire stake in Evraz
Russian daily Vedomosti newspaper, citing industry sources, reported that UK based Russian tycoon Mr Abramovich is in talks to acquire a large stake in Evraz Group. According to the newspaper, Mr Abramovich opened negotiations with the main owners of Evraz a few months back and were at a preliminary stage. The price, size of the stake and deal structure had not yet been discussed.
Vedomosti quoted an investment banker familiar with the position of Mr Alexander Abramov, Evraz's core owner, as saying that Evraz's owners were unwilling to sell control over the firm to Mr Abramovich but they were ready to sell a blocking stake. A blocking stake is 25% plus one share, and analysts say it is currently worth over $2 billion. Mr Abramov, holding more than 50% in Evraz, could not be reached for comment, while a spokeswoman said there were no free shares available on Evraz's balance sheet and no new share issues planned.
"Mr Abramovich may be seeking to buy an Evraz stake and resell it at a higher price. But this may also be the first step to creating a strong metals holding," said Mr Sergei Donskoi at Troika Dialog. "I think the market believes in the second option." Mr Abramovich has demonstrated he can drive consolidation and add value, gathering aluminium assets into industry giant RusAl before selling out to partner Mr Oleg Deripaska in 2004.
Mr Abramovich, owner of Chelsea football club and rated by Forbes magazine as the world's 11th wealthiest man with $18.2 billion, last year sold his 72% in oil company Sibneft to Russia's gas monopoly Gazprom for over $13 billion. "Abramovich may be No 11 as rated by Forbes, but he is definitely No 1 according to the liquid cash he has at his disposal," said UralSib's Mr Smolyaninov. "After he received $13 billion for Sibneft, one can hardly think of a single other person in the world who could boast of over $10 billion in liquid financial assets," he said. "With such financial muscle, he can certainly move mountains."
President Vladimir Putin last year nominated Mr Abramovich for a second term as governor of the Chukotka region. "One can hardly think of another person who could be as close to the establishment as Mr Abramovich," Mr Smolyaninov said.
Evraz Group SA is one of the largest metallurgical and mining companies doing business in Russia. It incorporates the Nizhny Tagil, West Siberian and Novokuznetsk metallurgical plants, the Nakhodka seaport, the Raspadskaya, Yuzhkuzbassugol and Neryungriugol coalmines, the Kachkanar ore dressing plant, Evrazruda and the Vysokogorsk ore dressing plant. In Europe, Evraz owns the Palini e Bertoli metallurgical plant in Italy and Vitkovice Steel in the Czech Republic.
Mr LN Mittal says that Chinese steel output set to slow down
It is reported that Mr LN Mittal CEO of Mittal Steel during a recent interview said that soaring Chinese steel production will slow as rising raw material prices nullify the country's labor cost advantage. "We are overplaying China," Mr Mittal said. "They have so much scarcity of resources" he added.
Iron ore prices, negotiated annually between mining companies and steelmakers, will increase as much as 15% this year Mr Mittal is reported to have said.
Chinese iron ore imports increased by 32% during 2005 to 275 million tonnes and accounted for about 43% of the global iron ore trade.
Kuzbassrazrezugol owners acquires 51% of Powerfuel
It is reported that Kemerovo Russia based Kuzbassrazrezugols owners have acquired 51% of stocks of UK based Powerfuel. According to the sources, the stake is acquired not by Kuzbassrazrezugol but by its owners Mr Iskander Makhmudov and Mr Andrey Bokarev. That purchase of Powerfuel is the first deal with foreign assets clinched by the coal firms of Russia. The analysts say the deal budget could be roughly $50.2 million. Kuzbassrazrezugol is expected to get a stake via the issue of new stocks.
Powerfuel is run by Mr Richard Budge and owns a coal mine Hatfield in South Yorkshire where coal production was stopped in 1993. CEO of Powerfuel recently announced its intentions to attract 35 million pounds to resume coal production by placing in March the additional stock on the Alternative Investment Market of the London Stock Exchange. In early March Powerfuel turned down these plans.
Kuzbassrazrezugol intends to construct a heat power plant of two units, 460 MW each to use Powerfuels coal. It is willing to spend around $150 million to 170 million to the effect till 2008 with settlement for the new stocks of Powerfuel taken into account.
Kuzbassrazrezugol incorporates 27 enterprises representing a specialized industrial technological complex. There are 13 open cast mines in its structure. Their annual coal productivity is 31 million tones. The company's mines exploit 17 coal deposits, a total of more than 110 coal seams.
French Finance Ministry examining Mittal Steels takeover plan
The French Finance Ministry said on Monday that it would study in detail a document submitted by Mittal Steel about its planned takeover of Arcelor.
"A Mittal Steel delegation presented the ministry with an industrial plan on Friday and the ministry will now study that thoroughly and ask the Mittal Steel team additional questions so that ultimately there can be a meeting between Finance Minister Mr Thierry Breton and Mr Mittal," a spokesman said. He added there was no timetable for the study.
Severstal becomes largest steel producer in Russia in 2005
Severstal has become Russia's largest steel producer in terms of production, with an output of 15.1 million tons last year, according to an International Steel Association report published last week. Severstal now ranks as the world's 13th largest steelmaker, the report said. Severstal's figures include production at US based Rouge Industries and Italian based Lucchine, which it bought last year. The two firms last year produced 2.5 million tons and 4 million tons of steel respectively.
Severstal edged Evraz Group for the top slot, which produced 13.8 million tons in 2005. Magnitogorsk Iron & Steel Works ranked 22nd and Novolipetsk 30th with production of 11.3 million tons and 8.7 million tons respectively.
Mr Dmitry Druzhin, the Severstal's head of investor relations said "The current trend is for steelmakers to expand their business, and we will also do that with an eye on merger and acquisition activities. At the moment, there's nothing attractive to buy" in Russia or globally, he said, without elaborating.
Severstal is majority owned by board chairman Mr Alexei Mordashov.
Chinese media starts to see 5% to 10% rise in iron ore price
Iron ore prices to be agreed this year between suppliers and steel makers could be 5% to 10% higher than last year, official Chinese media said, moving away from its previous insistence that prices should fall.
"Analysts believe that there is a very large possibility of a rise of no more than 5% to 10% this year," the China Securities Journal said in an article recently.
Fording reduces payout & forecasts lower coal prices
Calgary based Fording Canadian Coal, one of the world's top producers of metallurgical coal, reduced its cash payout for the second straight quarter because sales will be lower than it expected.
Sales this year will be between 22 million tons to 25 million tons, down from a previous forecast of 24 million tons to 25 million tons, because of excess supply of coking coal and as steelmakers switch to cheaper coals from Fording's coking coal, President Mr Jim Popowich said in the statement.
The average coal price for 12 months beginning April 1 is expected to be $109 a ton based on negotiated contracts between customers and Elk Valley Coal Partnership, which is controlled by the trust, Fording said.
Conveyor belt fire at Wheeling Pittsburgh steel plant
It is reported that a fire broke out in BOF building of Wheeling Pittsburgh Steel South plant in Mingo Junction on Saturday night, when a rubber conveyor belt cought fire. The fire was put off by shop floor people with the help of firefighters within 20 minutes.
No one was injured in the fire, and crews are still investigating the cause. It is reported that the fire didn't affect production at the plant.
Thailand steel demand growth projection at 8 to 10% for 2006
Thailands steel demand is expected to grow by 8% to 10% during 2006 from 13.88 million tons in 2005, according to the Federation of Thai Industries deputy secretary general Mr Payungsak Chartsutipol.
Steel demand is strong in line with the expanding local auto industry, canned product exports, government mega project investments. However, political tension could delay some construction projects.
Nigerian Kolorkote plans color coating capacity expansion
Kolorkote Nigeria Limited has planned to add a new 40,000 tons per annum state of the art color coating line to expand its operations in Otta Ogun at an investment of N1.4 billion. A consortium of two leading banks in the country is financing the project. The new line is to enhance the production of color aluminium and steel for long span roofing, partitioning, cubicle, houseboats, step tiles and ceiling strip.
The project, which is already at the foundation stage, is scheduled for completion and commissioning in the first quarter of January 2007. The equipment is to arrive from Britain, Italy and other countries soon.
Chairman of Kolorkote Nigeria Limited Mr Bode Emmanuel said that although products from the existing plant have cornered between 35% to 40% share of the entire domestic market, the new plant, when operational, would increase the share.
Kolorkote part of the Tower Group, has existing capacity for color coating of about 24,000 tons per annum.
Cape Lambert signs MOU with Sinosteel
Australian miner Cape Lambert Iron Ore Ltd announced that it has signed a non binding MOU with Chinese steel company Sinosteel Corp for the development of the Cape Lambert iron ore project in the Pilbara region of Western Australia. As part of the MOU, Sinosteel and Cape Lambert will negotiate a commercial agreement for the purchase up to 100% of the project's output, expected to be 5 million to 10 million tons a year by Sinosteel.
The company said negotiations on a joint venture agreement for the project's development will continue aimed at reaching a formal agreement which will include, among other things, joint venture obligations, product specifications, annual quantity, delivery schedules, pricing and payment terms.
Sinosteel represents 18 major steel mills in China which last year traded more than 20 million tons of iron ore.
Cape Lambert Iron Ore said it is also continuing to negotiate with Chinese trading group Shandong Yuansheng International Trading Co Ltd (Shandong), which is continuing to seek an equity position in the company and an off take agreement for up to 100% of the project's output.
Mechel chairman increases stake to 47.1%
Mr Igor Zyuzin, chairman of the board of directors at Mechel has increased his interest in the steel producer to 47.1% from 42.2%, Mechel said in a statement. This is the first step in Mr Igor Zyuzin's planned purchase of Mr Vladimir Iorich's stake, the statement said.
To finance this purchase, Mr Igor Zyuzin sold the equivalent of 68.2 million shares in a transaction comprised of the sale of 15.9 million GDRs representing 47.7 million shares and a UBS mandatory exchangeable bond, convertible into 6.8 million GDRs representing 20.5 million shares, the statement said.
WCI closer to emerging from bankruptcy
WCI Steel Inc said that it is one step closer to emerging from nearly three years of Chapter 11 bankruptcy protection. The northeast Ohio steelmaker that declared bankruptcy in September 2003 said it agreed in principle with more than two thirds of its note holders, the United Steelworkers of America and The Renco Group Inc, WCI's parent company and controlling shareholder.
The agreement will not be final until all related documents are completed, which must be done by March 28. A hearing was set before a U.S. bankruptcy judge that day.
Under the agreement, Renco would assume WCI's existing pension plan, which means current retiree benefits would be preserved.
The reorganized WCI would contribute between $15 million and $25 million to the existing pension plan, depending on the tax consequences of the reorganization.
WCI has about 1,700 employees, including 350 salaried workers. The company makes more than 185 grades of custom and commodity flat-rolled steel in Warren.
Chinese ship carrying iron ore sinks off South Korea
It is reported that a Chinese cargo ship carrying iron ore sank off South Koreas west coast immediately after colliding with an anchored freighter, leaving at least 3 crew members on the Chinese ship dead and 9 others missing. A nearby vessel rescued 5 of the 17 crew members. A helicopter and 29 boats were searching the area.
The 2,972 ton Xinhai 7 was entering the port of Incheon, west of Seoul, when it slammed into the 3,980 ton Korea Gas at about 4AM on Sunday as per a statement from coast guards. The sunken vessel is presumed to have not recognized the anchored vessel and collided with it, the coast guard said.
The South Korean cargo ship sustained minor damage and all its crew were safe, the coast guard said.
Bayou Steel to be acquired by Black Diamond Capital Management
Bayou Steel Corporation announced that it has entered into a definitive agreement with an entity managed by Black Diamond Capital Management LLC, an existing holder of Bayou Steel's common stock. Pursuant to this agreement, the Black Diamond entity would acquire all of the outstanding shares of Bayou Steel's common stock.
During the past several months, the Company's Board of Directors has been engaged in a process designed to elicit all offers for the Company that would maximize stockholder value. The agreement with Black Diamond represents the successful culmination of that process.
Mr Jerry Pitts, the President and CEO of Bayou Steel, commented "Bayou Steel believes the transaction with Black Diamond represents a very attractive per share price. Black Diamond is a committed strategic partner and this transaction will provide continuity in the present management team as well as a strong financially sound independent company that will ensure the cost effective modernization and expansion of our key production facilities and processes. The Company is committed to remain a strong competitor that will continue to serve our customers, suppliers and employees. We look forward to closing the transaction as soon as the required approvals can be obtained."
Bayou Steel Corporation manufactures light structural and merchant bar products in LaPlace, Louisiana and Harriman, Tennessee. The Company also operates stocking locations along the inland waterway system near Pittsburgh, Chicago, and Tulsa.
South Koreas steel imports from China in February up by 10.2%
South Korea's imports of Chinese steel products swung to an upturn in February after falling for five consecutive months, as per Korea Iron & Steel Association said. South Korea imported 532,548 tons of steel products last month up by 10.2% from a year earlier.
Import of steel into South Korea from China has been on the increasing since 2002, hitting a record 406.6% in February last year. Since then, imports grew at a slower pace until they switched to a downturn in September last year, KISA said.
China emerged as the largest steel exporter to South Korea in 2005 with shipments amounting to 6.78 million tons up by 56.4% over 2004.
ZEWA process from Siemens for recyclers
The VAI Division of the Siemens Group Industrial Solutions and Services (I&S) has jointly developed a new process with partners that allow metal oxide bearing and mineral residues from steelmaking to be used for industrial applications instead of being dumped as before. The process which is named ZEWA (for ZEro WAste) is based on high-temperature smelting-reduction reactions that are carried out in a specially designed, electrically heated reactor.
In the course of an EU sponsored project, a cooperation between the I&S Division VAI, Arcelor, CRM, Comet-Sambre and Lafarge led to the development of the new process for the treatment and conversion of industrial waste materials into reusable materials. Depending on their material characteristics and composition, reclaimed metals from the ZEWA process can be reused in steelmaking, and mineral products can be used as additives in the cement industry or as aggregates in road construction.
The new ZEWA process dispenses with the need to dispose of slag, dust, sludge or scale from the steel industry; fly ash from power plants; scrap residues from car dismantling, and bottom ashes from urban incinerators. These types of waste materials are generated in enormous quantities. Up until recently, there were no or very few possibilities for the direct recovery of these waste materials.
In 2002, a ZEWA demonstration plant with a by-product-production capacity of 2 t/h was erected at the Vovice Steelworks in the Czech Republic. There, the technical and economic feasibility of the ZEWA process with respect to the generation of useful metallic and mineral products from the residues of carbon- and stainless-steel production could be proven. The reclaimed metals or alloys can be directly recycled to the steelmaking process. After injections with the respective additives that influence the chemical composition of the slag, the mineral products can be used for various applications, for example, as a hydraulic binder in quantities of up to 50% as a substitute for cement clinker in the cement industry; or as an aggregate in road construction. After compositional adjustments, the slag can also be used as a desulphurization powder in secondary metallurgical processes.
Karelsky Okatish increases iron ore pellets output by 10%
Russian company Karelsky Okatish increased output of iron ore pellets by 10% to 1.46 million tons in January to February 2006 compared with the same period of 2005.
During January to February in 2006, the company raised output of iron ore to 3.91 million tons, and iron ore concentrate to 1.56 million tons.
Karelsky Okatish, a raw material unit of Severstal Group, is based in the city of Kostomuksha, in the northwest of Russia.
Venezuela's Sivensa to refinance & buy back stock
Venezuelan steelmaker Siderurgica Venezolana (Sivensa) said that it will spend $24 million to buy back up to 15% of its shares held by a group of banks since a 2002 debt restructuring. The 15% of shares targeted for repurchase are distributed among 14 local and foreign banks. "We are in discussions with the banks for a new refinancing of the debt and for the repurchase of shares," the company source said. The source said the $24 million for the repurchase would come largely from a loan from Deutsche Bank with a term of a year and a half.
Sivensa and its subsidiary Sidetur, which produces steel and steel products for the construction sector, carried out a $246 million short-term debt restructuring in 2000. But the company could not successfully make the payments and had to carry out another restructuring in 2002 for $255 million. During this process the company issued common stock to the banks that represented 15% of stock in circulation. It also issued a "Gold Stock" with special rights which will be eliminated if the refinancing is carried out.
Sivensa is also negotiating a $113 million refinancing plan aimed at lifting restrictions on dividends and capital investment contained in the previous financing package, a company source told Reuters. Analysts said that if the company successfully carries out the buyback and refinancing effort, it will free itself from the restrictions of previous contracts.
Sivensa has three businesses units that make steel products for the construction, manufacturing and infrastructure sectors, and briquettes for the steel industry, and wire and products for the manufacturing sector.
Russia's ferrous metal output down by 0.4%
The production of ferrous metals in Russia from January to February period reduced by 0.4% as compared to the same period a year ago to 9 million tons, the Federal State Statistics Service informed.
The production of steel pipes for the reporting period increased by 12.1 % to 1 million tons, the coke output amounted to 5.2 million tons, representing a decrease of 3.2% over January-February 2005.
Barzasskoje JV commences open pit coal mining in Kemerov
It is reported that the first phase of the coal pit JV Barzasskoje Partnership Ltd, the member of Stroiservis OJSC group of companies, was put into operation in the Kemerovo region. The pit's first phase has the capacity of 500 thousand tons a year and will later grow to 1 million tons a year.
RUR420 million were invested in the development of the enterprise. These funds were used for preparatory works, including the purchase of transport, performance of mining and construction works, creation of objects of industrial infrastructure treatment facilities, repair and mechanical unit, boiler with the administrative and amenity premises.
Dinh Vu commences trial runs for ingot production
Vietnams Dinh Vu Joint Stock Steel Company in northern port city of Hai Phong stated the trial run for production of steel ingots on March 19th.
With help from Chinese experts the factory produced two high quality 35-tonne batches of steel ingot.
The 400 billion VND plant is capable of producing 200,000 tonnes of steel ingot per year.
