March, 28 2006
Another steel price hike in India likely in April Mr Sajan Jindal
VC & MD of JSW Steel Mr Sajjan Jindal, during a CNBC-TV18s exclusive interview said that due to huge reduction in inventory levels international prices of steel have started moving up and hot band is at $520 levels in Europe and $600 in the US. A price hike of Rs 1500 is likely by Indian mills in April to maintain import parity he said.
During the interview Mr Jindal explained that steel is a cyclical commodity business and as all commodities are at their historic highs like zinc, aluminium or copper, steel is also at all time highs. But for the last one year there has been capacity build up in China, which led to steel prices coming down. But given the global growth, steel demand has shot up.
He said China is a big factor in the whole steel game because China has created this huge capacity of close to 400 million tonnes. If China sneezes, the whole world gets cold in the steel industry and this is exactly what is happening. If the Chinese decide that they have excess capacity and want to sell it in the international markets, steel prices just collapse globally. If the global industry feels that China is back into the market and has started buying steel, then certainly steel prices will start to spike up. So at the moment, the Chinese are talking about a growth of 8-9% in steel, which means 30-40 million tonnes of new steel capacity for next year. So that is what is giving this spike in steel prices.
Mr Jindal also said that It is hard to say what will happen to the steel industry. It is a very unpredictable situation but one very interesting point is that steel is the most used material globally, so one would see spikes, but on the lower side, the trough will always remain at a very healthy level. It is a good industry to be in and it throws in good cash flows.
Indian steel minister to push for SAIL & RINL merger
It is reported that the steel ministry is planning to revive its earlier proposal to merge Rashtriya Ispat Nigam Ltd with Steel Authority of India Ltd. Union steel minister Ram Vilas Paswan told FE that he would soon begin the exercise to build a political consensus over the proposed merger and would hold discussions with Andhra Pradesh CM Mr YS Rajasekhara Reddy and other members of Parliament representing the state to convince them that the merger would work to the benefit of the PSU.
Mr Paswan said a political consensus over the merger issue would be difficult but he would pursue the same as it would create a large steel PSU capable of handling competition from global steel majors like POSCO and Mittal Steel who plan to set up their own plants in India. The merger would create a large steel company with over 16 million tonne steel making capacity with immediate affect.
The proposal to merge RINL with SAIL was earlier opposed by Mr Reddy who had favored merger of other PSUs like Neelanchal Ispat Nigam Ltd with RINL to add muscle to its downstream activities rather than merging it with SAIL
An expert committee headed by Mr BL Das, had already submitted its recommendations to the ministry on action to be taken regarding merger of all steel PSUs but was silent on RINLs merger with SAIL.
Indian government to introduce new environmental laws
Indian government has finalized new norms under which companies will have to get prior clearances for new projects or expansions or modernization of existing facilities. These new set of rules are likely to be notified soon.
Under the proposed new guidelines projects or expansions covered under Schedule A, all companies will need approval from the Central governments Ministry of environment & forests and the government will constitute an Expert Appraisal Committee for making recommendations. The companies will need an approval even if they are going for change in product mix.
However, for smaller projects similar process would be followed at state level and SEACs will clear the projects.
Iron & Steel making is categorized under Schedule A.
Luxembourg trade minister to reach India today
Luxembourgs trade minister Mr J Kreeke will arrive in New Delhi today to apprise Indian government about the reasons of Luxembourg governments opposition to the hostile take over bid of Mittal Steel for Arcelor.
During his two day stay here, Mr Kreeke will meet commerce minister Mr Nath, steel minister Mr Ram Vilas Paswan and finance minister Mr P Chidambaram, as per reports.
SAILs ISP looking for Rebar JV partner
Steel Authority of India Limiteds IISCO Steel Plant is trying to rope in a JV partner to set up a 20,000MT per month rebar rolling mill at its works and has advertised for an expression of interest from interested parties.
ISP will provide the infrastructural facilities including shed, power, water and gas to the JV partner for setting up the rolling unit and would supply billets on conversion basis.
The interested JV partner should be having experience of rolling minimum 8000MT of rebars per year.
RINL to export 35,000MT of long products through tender
RINL has announced an export tender for 35,000 MT of various steel items, under their standard tender process, for shipment during April 2006 to June 2006. The last date of submission of tender is 10th April.
The items include 30,000MT of wire rods in coils in sizes ranging from 5.5mm to 12.7mm, 3000MT of Rebars in 16mm to 32mm , 1000MT of channels in sizes of 100mm to 150mm and 1000MT of plain rounds in size range of 16mm to 63mm for Sri Lankan, Middle East, US and other markets.
The shipment would take place from Visakhapatnam port.
PGCIL signs transmission line JVs with 5 upcoming power plants
Power Grid Corporation of India Ltd has signed JV agreements with the promoters of five power projects for building transmission lines at a combined investment of Rs 5,300 crore. The company signed MoUs with Oil and Natural Gas Corporation-IL&FS combine, Essar Power, Torrent Power, Jaiprakash Group and Teesta Urja Ltd for executing transmission projects associated with their generating stations with a combined generation capacity of 5,900 MW. The MoU signing would be followed by a formal joint venture agreement.
The five projects involve the construction of 5,000 circuit kilometers of transmission lines, six new sub stations and upgrading five existing sub stations. PGCIL will retain a minority 26% stake and the respective developer would hold the balance in the joint venture. All the projects are likely to be executed at a debt-equity ratio of 70:30.
While ONGC-IL&FS is setting up a 1100MW gas based power plant in Tripura, Essar and Torrent are building 1500MW and 1000MW gas based projects respectively in Gujarat. Jaiprakash Group is building 1000MW Karcham Wangtoo project in Himachal Pradesh and Teesta Urja Ltd is building a 1200MW power plant in Sikkim.
The transmission project cost with ONGC-IL&FS would be Rs 2,000 crore, with Teesta Urja Rs 1,500 crore, with Jaiprakash Group Rs 750 crore, with Essar project Rs 800 crore and Torrent Rs 250 crore.
"This is the beginning of a new era in the transmission sector. The Government alone cannot invest the Rs 71,000 crore required in the transmission sector by 2012 and more private players should come," said Power Minister Mr Sushil Kumar Shinde.
Welspun bags EEPC award for top exporter in Non SSI category
Welspun Gujarat Stahl Rohren Ltd has been awarded the Engineering Export Promotion Council Award for the highest exports in the Non SSI category for the year of 2003-04.
The award sponsored by the Ministry of Commerce was presented by Mr Jairam Ramesh, Minister of State for Commerce and Industry at a function held at the Hyatt Regency in Mumbai on 25th March, 2006 and Mr BK Mishra CEO and Member of Board received the award on behalf of the company.
The company feels that the EEPC award is recognition of the companys significant contribution in the countrys endeavor to surge into global markets. This is the third time that the company has received this award.
Ex MD of DSP joins Gangotri Iron & Steel board
Gangotri Iron & Steel Company Ltd has informed BSE that the Board of Directors of the Company at its meeting held on March 24, 2006, has appointed Mr. Debabrata Mukherjee ex MD of SAILs Durgapur Steel Plant and ex ED of SAILs Alloy Steel Plant as Independent & Non-Executive Additional Director u/s 260 of The Companies Act, 1956 of the Company with immediate effect.
TopRINL CMD awarded Ugadi Puraskar
Vedic Seva Trust presented Ugadi Puraskar to Visakhapatnam Steel Plant CMD Mr Y Siva Sagara Rao in a function held on Sunday. Mr K Sivananda Murty of Ananda Ashram felicitated Mr Rao and his wife Mrs Chinnamma Sagara Rao on the occasion.
Mr Murty said Rao deserved the accolades for his untiring efforts over several years and described Mr Rao as person who transformed the VSP into a world-class company.
Kamdhenu to build 5 more stockyards
Kamdhenu Ispat Limited proposes to enter capital market with an Initial Public Offer of 1.28 crore equity shares. "The net proceeds of the issue would be deployed to set up five more stock yards for marketing company's construction material," Company Chairman Mr Satish Aggarwal told reporters.
Kamdhenu already has five stockyards and proposes to build five more each in Himachal Pradesh, Rajasthan, Gujarat, Madhya Pradesh and Uttar Pradesh, he said.
He said that the current steel production capacity of the company's plant at Rajasthan including its 22 franchise steel units is over 0.8 million tonnes per annum.
China to play hard ball in iron ore negotiations
Iron ore demand and prices are likely to be discussed at Metal Bulletin's China Iron Ore and Far East Steel conferences being held in Beijing starting tomorrow as Mr Luiz Meriz sales manager of CVRD and Mr Warwick Smith MD of Rio Tinto Iron Ore Expansion Projects are among the scheduled speakers.
The government of China said on March 15 that its steelmakers won't accept higher prices and will fight unacceptable demands to protect the industry. China is seeking a bigger say in iron ore global trade talks. Mr Andy Xie, chief Asia economist at Morgan Stanley in Hong Kong. Said For many steel mills in China, the ore price amount could mean the difference between life and death in 2006 and China may have to play hardball to stop the ore producers bankrupting China's steel industry.''
Chinese companies led by Baosteel Group want a bigger say in setting prices after tripling imports in the last five years and overtaking Japan as the single largest buyer in 2003. The Chinese government plans to monitor the talks though isn't going to be part of them, the Xinhua report said.
Japanese steelmakers Nippon Steel Corp and JFE Steel Corp angered Chinese rivals last year when they set global benchmark prices by agreeing to a record increase with CVRD. China was upset with us for deciding so early on iron ore prices last year said Mr Hajime Bada, president of JFE Steel. Some said we should have fought longer. Our stance is a little more cautious this year. We're not so easily able to accept a price increase'' he added. It looks like the Japanese have told the Chinese, you go and set prices and we'll support,'' Mr Harry Bang vice chairman of Noble Group Ltd., which handles 7% of iron ore shipments into China, said in Hong Kong on March 14. Nobody wants to offend the Chinese because everybody has an interest.''
China is becoming more organized and a stronger force, we're just starting to see the beginning,'' said Mr Peter Chilton, who helps manage A$1.1 billion ($812 million) at Constellation Capital Management in Sydney. The government's actions have made people more nervous over the outcome'' of the talks.
BHPB, Rio Tinto and CVRD may get about a 10% percent rise in iron ore price negotiations, less than the 20% expected initially, said analysts including Mr Rob Clifford of ABN Amro Holding NV in Melbourne.
Reports of China's recognition that prices might need to rise by 5% to 10% may pave the way, in our view, for an imminent settlement of iron prices for 2006,'' Credit Suisse Group analysts Mr Roger Downey and Mr Peter O'Connor said in a report.
Iron ore price gains could be closer to 10% than 20% given the degree of opposition'' this year, Deutsche Bank's chief metals economist Mr Peter Richardson said on March 14.
Mr Bonnie Liu, a metals specialist at Macquarie, said that Chinese steel companies' position was untenable due to continued strong Chinese demand for the commodity. "The price definitely has to increase 10 to 15 percent, that has to be the truth and the result," said Mr Liu. "You just cannot tell the market what you want. Everything has to be decided by the market not by a single country" He added.
BF accident reported at Azovsthal
It is learnt through Ukrainian sources that an accident occurred in Mariupol based Azovstal on last Thursday at 20.55 HRS. As a result of breaking up of the roof in the Blast Furnace No 3, a gas pipe was damaged and it burst resulting in fire. Two persons were poisoned by carbon monoxide and one was admitted in a hospital with multiple fractures of limbs.
The accident partially destroyed the dome of the furnace and the inside brick lining of the furnace. The water pipeline was also effected which led to excessive heating forcing the Power station to go off.
It is learnt that as a safety measure the BF No 1 and 4 were also made non operational for some time.
Incidentally the accident effected BF No 3 was supposed to go for overhauling very shortly. It is reported that the restoration work has begun immediately and after restoration it would be put for overhauling, which will take 45 to 60 days.
A commission is working for determining the reason of the accident.
It is likely that the shutdown of BF 3 may lead to a decrease in steel making by at least 15%. Thus situation may further strengthen the black sea price levels for various products.
CSN shares surge on reports of takeover
Shares of Brazilian steel maker Companhia Siderurgica Nacional's soared by 6% on Monday afternoon on Sao Paulo's Bovespa exchange, and the company's American depository shares climbed by nearly 5% on the New York Stock Exchange.due to a report that the company could be acquired by one of two European steel manufacturers.
Investors snapped up CSN shares after British newspaper The Business reported Sunday that Arcelor SA and Mittal Steel were both in talks to acquire the company. The paper quoted unnamed Brazilian bankers and senior executives at Arcelor's Brazilian division.
CSN officials weren't immediately available for comment and Arcelor & Mittal Steel officials declined to comment.
Steel Technologies to sell Custom Steel to American Railcar
Steel Technologies Inc has decided to sell its Custom Steel Inc. subsidiary to American Railcar Industries Inc. for about $18 million. The transaction is expected to be completed by April 1.
Custom Steel's facility is located next to ARI's manufacturing facility in Kennett, Mo. Custom Steel produces fabricated parts and primarily supplies ARI's railcar manufacturing operations.
"As our only fabrication facility, and significantly devoted to ARI's operations, it has a stronger strategic fit, long term, as part of that company," Mr Bradford T Ray chairman and CEO of Steel Technologies, said in a news release.
Louisville based Steel Technologies processes flat rolled steel for automotive, appliance, agriculture, railcar, construction and other industries. The company has 20 facilities throughout the US and Mexico.
AK Steel examining union proposal
AK Steel Corp. is reviewing a new proposal from its union, which has been locked out for nearly a month. The union presented the proposal Saturday during a meeting between negotiators from the company and the Armco Employees Independent Federation, said AK spokesman Mr Alan McCoy. They will meet again Wednesday at 2PM he said.
Mr McCoy said the union is asking for the right to strike over arbitration decisions during the term of their proposed 38 month agreement. McCoy said that provision has not been included in an agreement since 1957. AEIF also asked the company to restore lost earnings, benefits, out-of-pocket medical expenses and other unspecified expenses incurred because of the lockout Mr McCoy said.
ISRI cautions EPA over Mercury Switch Program
The Institute of Scrap Recycling Industries has cautioned that negotiations over coming up with a mercury switch policy are far from complete, contradicting an earlier EPA announcement on progress made by Mr Stephen Johnson, EPA administrator. The differences involve the National Mercury Switch Recovery Program.
Administrator Mr Johnson has clearly overstated the progress made by the parties discussing the MNSRP, said Mr Robin Wiener ISRIs president in a released statement. There are serious flaws in the memorandum of understanding that is proposed as a structure for future discussions. Characterizing the progress made as only needing to hammer out the final details is, at the very least, overly optimistic.
In 2002, ISRI helped form the Partnership for Mercury Free Vehicles, a collection of associations representing environmental groups, auto dismantlers, scrap recyclers, and the steel industry, in an effort to address the issue of mercury switches in automobiles, a source that can potentially put over 50 tons of mercury into the environment. ISRI and the partnership have worked hard to establish effective switch removal programs that are now operating and in place in several states.
We welcomed the opportunity to address this issue on the national level, Wiener said. And we are committed to finding a solution to the problem of mercury emissions resulting from automobile applications including a sound and effective mercury switch removal program. However, we have grave concerns that the NMSRP, as currently outlined in the working memorandum of understanding, will not achieve the important goal: protection of human health and the environment.
Valmont honored with two awards for excellence in galvanizing
Valmont Industries Inc announced that Valmont's Coatings Division was honored with two Awards of Excellence in hot dip galvanizing. The awards competition, by the American Galvanizing Association, was based on the utilization of hot dip galvanizing in an ideal, creative, innovative and monumental fashion.
Valmont Coatings Intermountain Galvanizing facility, located in Lindon Utah was recognized in the "Electrical, Utility and Communications" category for its "Metcalf Energy Center" project completed in California's "Silicon Valley".
Valmont Coatings West Point Galvanizing facility, located in West Point, Nebraska received the "Building & Architecture" category award for "The Tip Top Building Renovation" project in historic downtown Omaha, Nebraska.
"Valmont Coatings is proud to receive these two awards," said Mr Rick Cornish, Valmont's Vice President and General Manager of Coatings & Galvanizing Services. "The AGA Award criteria are based on the world's most stringent standards for performance excellence. We are very pleased to be chosen by the independent panel of architects, engineers, designers and users of galvanized steel."
Valmont is the global leader in designing and manufacturing poles, towers and structures for lighting and traffic, wireless communication and utility markets and a provider of protective coating services. Valmont also leads the world in mechanized irrigation equipment for agriculture, enhancing food production while conserving and protecting natural water resources. In addition, Valmont produces a wide variety of tubing for commercial and industrial applications.
1 killed and 14 missing in Guizhou colliery gas explosion
One miner was confirmed dead and 14 others were missing in a coal mine gas outburst in Southwest China's Guizhou Province on Sunday, local government sources said. The gas outburst occurred in the Wulunshan Coal Mine in Nayong County at 10PM on Sunday when 104 miners were working underground. 89 workers managed to escape, said Mr He Gang, head of the Guizhou Provincial Administration of Production Safety, who rushed to the site to supervise the rescue work.
Investigation into the cause of the accident is underway.
The state owned Wulunshan Coal Mine is run by the Guizhou Energy and Chemical Co. Ld, a subsidiary of the state-owned Yanzhou Coal Group in eastern Shandong Province, said Mr He.
Evrazuda to increase efficiency of iron ore beneficiation
Evrazruda OJSC, a member of Evraz Group, has developed a program of the modernization of its concentrating complex. Under the program, the company is to implement a plan of actions aiming to decrease the coarseness of primary concentrates arriving for breakage.
It also plans to introduce new magnetic systems on separators and operations of checking separation for additional recovery of iron from tailings.
As a result of program implementation, the company will increase the production of primary and secondary concentrates as well as the level of iron extraction and to increase the quality of secondary concentrate supplied to Western Siberia Metal Integrated Works.
Grange seeks partner for iron ore project
Perth based mineral explorer Grange Resources Ltd's has announced that it is seeking one more JV partner to contribute to the development of the project through direct cash funding and provision of services for its $1.2 billion iron ore pellet project comprising of the Southdown iron ore mine north of Albany and the Kemaman pellet plant in Malaysia.
The tender process is being managed by Azure Capital and is expected to take approximately 6 months to complete. The tender process will be open to all qualified parties with no exclusive or preferred relationship currently in place.
Project construction is expected to commence in January 2007, subject to statutory approvals, and first production is scheduled for early 2010. The project is expected to produce 6.8 million tonnes per annum of iron ore pellets for supply to steelmakers using blast furnace or direct reduction production processes.
The mine will be located at Southdown, near Albany in Western Australia. Iron concentrate will be transported by slurry pipeline to Albany Port before being shipped to Kemaman in Malaysia where the pellet plant will be located.
Moody upgrades Kobe Steel's rating to positive
Moody's Investors Service said it has changed the outlook on its 'Baa3' senior unsecured debt ratings on Kobe Steel Ltd and its supported subsidiaries to positive from stable. The revision reflects Japan's fourth largest steel maker's steady progress in refocusing its business and product portfolios and financial strategies, Moody's said in a statement.
Moody's said it expects 'Kobe's ongoing capital investments and realigning of production will support its strategy to be a solid supplier of select products in which it has competitive advantages, and that they will promote the company's further shift to high-quality and special-function products.
Western Canadian Coal to suspend operations at Dillon Mine
Western Canadian Coal Corp announced that effective March 31, 2006, it will be suspending mining operations at the Dillon Mine due to the anticipated road weight restrictions on public roads used in the Dillon coal haul caused by spring breakup. The suspension is expected to be between four and six weeks. Company estimates that the Dillon Mine suspension will result in a cash operating savings in excess of $5 million during the period.
The Dillon Mine, located on the Companys Burnt River Property in Northeast British Columbia, produces an ultra low volatile pulverized coal injection coal.
The suspension at Dillon will not result in disruptions in supply of PCI coal to the Companys customers as it has accumulated coal inventories at Ridley Terminals in excess of 175,000 tonnes in anticipation of the road restrictions.
The Company will re deploy the Dillon workforce to further the development of its Wolverine Mine, hard coking coal project, which remains on schedule to be completed in July 2006.
Kennametal signs a $500 million credit agreement
Kennametal Inc announced signing of a $500 million second amended and restated revolving credit agreement. This five year syndicated bank facility lowers Kennametal's borrowing costs and provides the company with added flexibility in pursuit of its strategic acquisition activity, including the incorporation of a foreign subsidiary borrowing feature.
Bank of America acted as co lead arranger and will be the administrative agent for the transaction. Key Bank and National City Bank were co lead arrangers and co syndication agents. The agent group was completed by JPMorgan Chase Bank and PNC Bank, National Association in their capacity as co documentation agents.
Kennametal Inc is a leading global supplier of tooling, engineered components and advanced materials consumed in production processes. Customers buy over $2.3 billion annually of Kennametal products in over 60 countries.
Former SAs industry director asks competition tribunal to regulate steel prices
It is reported in local dailies that erstwhile ISCOR, now Mittal Steel SA, appears to have breached an agreement to pass on benefits of a government incentive scheme to South African buyers. Former South African trade and industry department director general Mr Zavareh Rustomjee, appearing as a witness on behalf of Harmony Gold and DRDGOLD in the pricing dispute case with Mittal Steel SA, during the hearing said that ISCORs Saldanha steel mill was one of the major beneficiaries of an accelerated depreciation scheme under tax law in the early 1990s. One of the requirements of the scheme was that ISCOR should not make higher profits on domestic sales to customers, who used the steel to make goods for export than ISCOR made on its steel exports and this did not appear to have happened.
He also said the arrangement whereby ISCOR sourced iron ore on a basis of cost plus 3% from Kumba was intended to benefit both ISCOR and its South African customers. The iron ore price had been determined on the advice of the Industrial Development Corporation, which was a shareholder in the Saldanha mill at the time, he said. "From the IDC's and government's policy perspective, this advantage was intended to benefit not only ISCOR shareholders, but also benefit the downstream steel using sectors," said Mr Rustomjee.
He outlined a series of incentive schemes the steel maker had benefited from in addition to the accelerated depreciation allowance, which helped it accelerate the write-off of assets worth about R2.1 billion. Mr Rustomjee said the company had benefited to the tune of about R875 million in 1992-96 from the General Export Incentive Scheme. More recently, Mittal Steel SA secured a R300 million benefit through the Strategic Investment Program for a coke oven battery it was building at its Newcastle works.
Mr Rustomjee said the Competition Tribunal should regulate steel prices if Mittal Steel SA exercised its extensive control over steel prices in such a way that it prevented growth in the downstream industry. It would be "very much in the domain of the tribunal", said Mr Rustomjee. Trade and industry institutions were still relatively young and their roles were in flux. In the absence of a more appropriate body, competition authorities should redress situations where buyers could not defend themselves against over-dominance, he said.
The hearing resumes on Wednesday.
SteelFORCE a new name for Belgian steel trading company
Antwerp based SteelFORCE Holdings has announced that SteelFORCE would the new name for Promafercom and its subsidiaries Promatex, Ferromex and Compansid.
Mr Carlo Pannemans one of the directors feels that the change of name and branding is the logical step for the company to improve international presence in view of the changing global steel scenario.
SteelFORCE, an international steel trading house, started operations in 1974 with Africa and expanded to other markets to include Asia, America, Middle East and China and is today active in more than 85 countries.
Boulder Steel lures another Dubai Investor
Australian Boulder Steel has secured a second application for 85 million fully paid Boulder shares to the value of approximately $A12 million ($8.925 million) from another Dubai-based investor after the receipt of an application for 85 million shares from UAEs Falak Holding LLC.
Dubai based Mr Mohammad Yousuf Al Ali whose main activity is real estate development in the United Arab Emirates wants to expand his investments into steel related activities.
Boulder Steels commissioning of the Australian Seamless Steel Tube plant in Ipswich Queensland is planned for 2008, with full capacity by the end of 2010.
Slovenian Steel Group extends CEOs term for 5 years
The supervisory board of the Slovenian Steel Group on Tuesday, 21 March extended CEO Mr Tibor Simonka's term in office for another five years. Mr Simonka has led the Group since September 2002.
Slovenian Steel Group has made a net profit of SIT 1.2 billion (Euro 5 million) during January to February, a 72% increase over the same period 2005. Sales revenues amounted to SIT 21.5 billion (Euro 89.7 million) 17% above the target.
While its main markets remain within the EU and US, the Group is also expanding to Eastern Europe and Asia and total export accounted for almost 71% of Groups revenue. Metal Ravne continues to be the flagship company, posting a net profit of SIT 682.5 million (Euro 2.8 million).
Delta posts 73% increase in profit driven by galvanizing unit
Engineering firm Delta posted a 73% rise in pre exceptional profit from continuing operations on as its Australian galvanized steel division helped outweigh spiraling raw material costs.
Delta said profit from continuing operations before exceptional items rose to 16.8 million pounds last year from 9.7 million in 2004 on revenue up by 21% to 242.0 million pounds. Deltas galvanized steel division saw a 31% increase in operating profit up to 16.4 million pounds from 12.5 million pounds in the previous year.
However Delta said that it did not expect to enjoy a strong 2006 and a repeat of the exceptional volumes seen in 2005 is unlikely due to volatility in steel prices and zinc.
Reliance Steel & Aluminum completes acquisition of Flat Rock Metal Processing
Reliance Steel & Aluminum Co announced that its subsidiary, Precision Strip Inc, has completed its previously disclosed acquisition of certain assets and business of Flat Rock Metal Processing LLC based in Flat Rock, Michigan. Terms were not disclosed.
Flat Rock was founded in 2001 and is a privately held, toll processing company with facilities in Perrysburg, Ohio, and Eldridge, Iowa. The two Flat Rock facilities will operate as Precision Strip locations that process and deliver carbon steel, aluminum and stainless steel products on a toll basis, processing the metal for a fee, without taking ownership of the metal.
Precision Strip currently has facilities in Kenton, Middletown, Minster and Tipp City, Ohio; Anderson and Rockport, Indiana; Bowling Green, Kentucky; and Talladega, Alabama. Precision Strip's customers include steel and aluminum mills as well as companies in the automotive, appliance, metal furniture and capital goods industries.
Reliance Steel & Aluminum Co., headquartered in Los Angeles, California, is one of the largest metals service center companies in the United States. Through a network of more than 100 locations in 32 states and Belgium, China and South Korea, the Company provides value-added metals processing services and distributes a full line of over 90,000 metal products including galvanized, hot rolled and cold finished steel; stainless steel; aluminum; brass; copper; titanium; and alloy steel.
Tarpon Industries announces $5.5 million sale and lease back
Tarpon Industries Inc, a manufacturer and distributor of structural and mechanical steel tubing and engineered steel storage rack systems, today announced that it has entered into an Agreement of Purchase and Sale with Agellan Investments Inc for the sale and leaseback of all of the land and buildings of the Company's operations located in Mississauga, Ontario, Canada.
The purchase price for the Property is approximately $5.5 million. The Company plans to use the proceeds from the transaction to retire mortgages on the Property, pay expenses relating to the transaction and for capital improvements associated with the property. In addition, the Company intends to use the remaining $690,000 to fund additional growth for its businesses.
"We are pleased to enter into this relationship and look forward to working with our new landlord," said Tarpon Chairman and CEO Mr J. Peter Farquhar. "The sale and leaseback arrangement will permit the Company to deploy additional capital consistent with our growth aspirations. As we continue into 2006, we remain committed to tightly managing operational expenses while focusing on the growth of our businesses."
Tarpon Industries, Inc., through its wholly owned subsidiaries within the United States and Canada, manufactures and sells structural and mechanical steel tubing and engineered steel storage rack systems.
Bomb blast at steel factory in Liaoyang injures 19
19 people were injured when a man detonated a homemade bomb at an office of a steel factory on Sunday in Liaoyang County, Liaoning Province. The suspect Mr Yang Zhixue a truck driver surrendered to police.
Mr Yang reportedly was mistreated by the factory management when he asked to be paid outstanding cargo delivery fees.
