March, 05 2006
Uttam Galva Steels launches Rs 100 cr-service centre
Uttam Galva Steels has announced the launch of a service centre that has a total capacity to service 0.6 million tonnes of steel per annum with an investment of Rs 100 crore. The service centre, to be set up in two phases, would cater to auto and white goods manufacturing clients in the domestic markets and offer specialized construction grades in the export market, the company said in a statement.
The first phase, which is expected to be completed by June 2006, would enable the company to offer 50% of the envisaged capacity and the balance would be completed by December 2006, it said.
"Our clients are increasingly shifting to just in time deliveries, inventory management services and tailor made sizes as per end users requirements to avoid wastages and maximize their productivity," Mr Ankit Miglani director of Uttam Galva said. By launching the Uttam service centre in India we would essentially bring in international concept at the doorsteps of Indian customers, he added.
Centre allots funds for feasibility study of deep draft port in Bengal
Emphasizing the need for a deep draught port in the eastern part of the country, the Union government has decided to give budgetary support for the project. In this connection, the Budget has allotted Rs 10 crore to study the feasibility of building a deep draught port in West Bengal. Dr AK Chanda KoPT Chairman said that KoPT has already prepared the terms of reference and will submit it to the government shortly and the government would appoint a new consultant for a fresh feasibility study.
The Kolkata Port Trust had earlier proposed a deep draught port at Saugor, in the Bay of Bengal and had appointed Japan International Cooperation Agency for a feasibility study, which is yet to be submitted.
Kolkata Port cannot handle ships larger than 40,000 to 50,000 DWT because of its low draught of 5 to 8.5 meters. A deep water port with draught of above 12 meters would allow vessels of up to 100,000 DWT to berth.
TATA Steel commits to run Incab Industries
It is reported that TATA Steel gave a written commitment to the Jharkhand government, stating that it would like to run the ailing unit of Incab Industries Limited in Jamshedpur in a high level meeting on Incabs revival held in Ranchi, which was presided over by finance minister Mr Raghubar Das. At the meeting, TATA Steel agreed to take the necessary steps to ensure early revival of Incabs Jamshedpur unit.
It was also decided that State Bank of India, the operating agency of Incab, will convene a meeting of the companys creditors and stakeholders at Calcutta in the third week of March. The meeting will seek opinion on how much the creditors can sacrifice for the amount they owe to the ailing company. The final rehabilitation package for Incab will be worked out after the meeting with creditors in Calcutta and forwarded to the Board for Industrial and Financial Reconstruction.
Incab was referred to the BIFR after its Malaysian promoter refused to pump in funds owing to large scale financial irregularities in 1999. If a final revival package is not agreed BIFR could announce liquidation of the company.
Punjabs Mithila Malleables to setup a steel unit in Raipur
Punjab based Mithila Malleables Private Ltd is putting up a unit with an investment of Rs 15 crore at Raipur in Chattisgarh. According to Mr Avtar Singh ED of Mithila Malleables, this unit will focus on bulk steel production at the Raipur facility and value added steel products would be manufactured in the existing unit at Sirhind in Punjab. "We decided to undertake expansion in Raipur primarily because of proximity to iron ore and cheaper power tariff," said Mr Avtar Singh. In the past few years, the withdrawal of freight equalization and persistent increase in the power tariff in Punjab made the expansion unviable in Punjab, he added.
Mithila Malleables has been in the steel business in Punjab for 25 years with its production facility at Sirhind in district Fatehgarh Sahib. The company has a turnover of Rs 100 and has a target of Rs 300 crore in the next two years. The present production of Mithila Malleables is 100 tonnes of hand molded casting per month. The expansion program, which is under advance stages of execution, will increase capacity to 2,500 tonnes a month, which is more than the capacity of all other foundries in India put together, said Mr Avtar Singh.
Mithila Malleables manufactures a range of steel products like steel, alloy steel, open forays rolls, shafts and blanks, turnkey structural bars, heavy duty shearing machines, coilers and slitting lines, precision machined components, structural fabrication etc. The company exports rolling mill equipment to the US, South Africa, Kenya, Ukraine and almost 20% of the production is exported.
Visa Steel fixes issue price for its IPO
Visa Steel has fixed the issue price for its initial public offering at Rs 57 per share, according to a release. Visa Steel, a part of the Rs 1,664 crore VISA Group, entered the capital market on February 23 with an issue of 35,000,000 equity shares of Rs 10 each for cash and premium to be decided through 100% book building process. Its price band was fixed at Rs 52-57. The issue was subscribed 6.6 times. The net issue to public constituted 27.27% of the post issue paid up equity capital of the company.
Visa Steel intends to utilize the proceeds of the issue to finance a part of the capital expenditure for brown field expansion of its existing manufacturing facilities into an integrated 0.5 million tonnes per annum special and stainless steel plant at Kalinganagar Industrial Complex in Orissa.
Indian steel industry to touch 200 million mark by 2020, IF
It is reported that Mr JP Singh former Joint secretary Union Ministry of Steel who is currently holding charge as Goa's Chief Secretary said that IF 34 MoUs signed by Jharkhand and Chhattisgarh governments with the private firms materialize, the country will have 120 million tonnes of additional steel production and the steel industry is expected to touch the 200 million tonnes mark by 2020 from the present 38 million tonnes at the "Iron and Steel Summit 2006" organized by Steelworld in Goa.
Mr Singh said "With the stress being laid on value addition of iron ore, more steel plants are likely to come up in the states where iron ore is extracted. MoUs are signed but we have to see how much serious the parties are in adhering to it," he said. "If the MoUs materialize, these states will see considerable jump in their revenues" he added.
3 companies in Hebei merge to form 2nd largest steel company in China
Chinas Hebei Province has merged three of its major steel groups Tangshan Steel Group, Xuanhua Iron and Steel Group and Chengde Iron and Steel Group into one new company called Tangshan Iron and Steel (Group) Ltd with an annual output of 16.07 million tons of steel. It will be the second largest steel company in China next to Bao Steel with total asset of 57.6 billion yuan ($7.16 billion) and will have the capability of producing 20 million tons of steel annually in the future.
Former Tangshan Steel Group was the largest steel producer in Hebei with an annual output of 10 million tons in 2005. Xuanhua Steel had an annual sales income of 10.6 billion yuan last year. Chengde Steel is a leading company in China's Vanadium & Titanium Industry.
Hebei has the biggest steel industry in China, with an annual output of 73.86 million tons last year, its steel production accounted for 21% of the total in China. However, smaller steel companies produced the most. The province has only two steel companies whose annual output is more than 5 million tons while the total number of the steel companies in it is more than 200.
The restructuring of the corporation is in accordance to China's Development Policy for the Iron and Steel Industry issued last year by the central government, which encouraged the merger of steel companies throughout the country.
Buyout report sends AK Steel shares up by 23%
AK Steel's shares climbed more than 23% last week after a published report said it was in talks about being acquired by larger rival U.S. Steel Corp. The Pittsburgh Post-Gazette reported on Friday that US Steel was in talks to acquire AK Steel.
Shares of AK Steel Holding Corp jumped by $2.65 or 23.4% to close at $13.99 in trading on the New York Stock Exchange. They have traded in a 52 week range of $6.23 to $18.22. US Steel shares rose by 38 cents to $57.98.
Arcelor to discuss with Mittal Steel only after detailed plans
Mr Guy DollCEO of Arcelor retreated that a detailed document is to be tabled by Mittal Steel to start discussions between Arcelor and Mittal Steel on the takeover bid. In his opinion Mr Mittal CEO of Mittal Steel never made such a measured approach and launched his hostile bid in late January just a fortnight after touching on the subject of creating a 120 million tonne steel producer with him over after dinner drinks. "He did not show me a plan because he does not have one," Mr Dollsaid this week. "I do not know if I could work with Mr Mittal. Normally to do so you would have to have managed properly the beginning of the story."
Despite receiving several invitations, Mr Dollrefuses to meet his rival steel tycoon. "I don't want to discuss with him without receiving a plan. But it has to be a proper plan. His industrial plan is 6 pages that is not a plan. That is a list. When we created Arcelor, we had a 1,000 page plan."
On the other hand Mr Mittal says that the 6 page version is just a summary and not its full industrial plan that will come when the two sides start to talk.
Mr Wilbur Ross aims to build a coal giant in China
It is reported that turnaround artist Mr Wilbur Ross will soon begin intensive negotiations with at least six local governments in China to convince them to fold their local coal industries into a new national powerhouse. Mr Ross, accompanied by advisers, is flying out on 20 March to Chinas northern and western regions, where most of its coal is produced, and will remain there until 31 March.
In an interview with The Business Mr Ross said: China is the place thats especially interesting for coal, in that its a highly fragmented industry, clearly inefficient. He said the Chinese coal company would be aiming for the same sort of scale as ISG. He said: It could be fairly sizeable. Were not in the mode where we can do things that are too small.
Mr Ross said few international companies had had success entering the China coal industry. The government has decentralized control of the industry to local governments, which have tended to do transactions with local people. Its a shame because coal is one of the few natural resources China has in abundance and when you mine coal incorrectly, you dont get to develop all the reserves. But he argued central government was realizing this and would be more favorable to international investors. I think the central government has started to become more sympathetic to the idea of western technology coming in and helping consolidate the industry.
Mittal Steel Weirton outlines severance offers
A buyout package being offered by Mittal Steel to 1,000 Mittal Weirton workers will force families to choose between a lump sum payments or as much as two and a half years of continued health care coverage, according to documents being mailed out to laid off plant employees. On December 5, it was announced the hot end of the plant was indefinitely idled and approximately 950 steelworkers would lose their jobs. Then, on February 2, the mill announced an additional 40 jobs would be lost as the plant would idle its galvanized line, also known as the sheet mill.
The package includes three different levels of seniority, one for workers who have been at the mill more than 20 years, one for workers who have between 10 and 20 years of experience and one for workers with fewer than 10 years experience. Through the package, workers are given a chance to either take a lump sum cash payment based on experience and lose their health insurance by April 1 or receive their sub-pay and retain their health insurance for a certain period of time, depending on how much they have left. Any employee who chooses the lump sum cash payment will be eligible to purchase additional health care coverage through COBRA.
This is something to ease the pain, ISU president Mr Mark Glyptis said. Our goal was to obtain the highest level of benefit for the workers. It is a fair offer. What is difficult is the job loss. The employees would rather have their jobs back, Mr Glyptis said.
We have put together an attractive severance package in order to ensure the smoothest possible transition for both our employees and the new plant configuration, said Mr Louis L Schorsch CEO of Mittal Steel US noting that Mittal steel is continuing to operate the hot strip mill at Weirton, which had been under scrutiny as well. Working with the Independent Steelworkers Union, we are developing plans that will enable that operation to run economically. By using semi finished steel from our cost-effective plants and by eliminating unrelated costs, we expect to make Weirton a highly competitive maker of tinplate.
China to maintain coke production capacity unchanged
China will maintain its domestic coke production capacity at around 300 million tonnes for the following three years to phase out uncompetitive producers, officials from the state economic planner, the National Development and Reform Commission said at the "2006 H1 Coke Market Prospects Conference".
The domestic coke industry is approaching the bottom level of its industrial cycle but overproduction will still linger for two to three years, according to Mr Hou Shiguo of NDRC's Industry Policy Bureau. "As a result, uncompetitive producers should be resolutely phased out of the market," the official said.
According to official statistics, China's coke production capacity stands at around 300 million tonnes by the end of 2005, of which 24% is estimated to be unnecessary. There are 37 coke ovens under construction in China with total designed production capacity of 20.6 million tonnes.
China produced 243 million tons of coke in 2005, representing an annual growth rate of 17.9%, out of which 12.76 million tonnes was exported over the same period.
Union to resume lock out talks at AK Steel
AK Steel and the union at its Middletown Works agreed to resume negotiations to end a three day lockout. The talks were to have resumed Friday afternoon, but the union postponed them so it could learn more details about US Steel's reported interest in buying the company. The leadership of the Armco Employees Independent Federation emphasized it was not breaking off efforts to reach a settlement at the company's largest plant.
"Your executive board is assessing this development and its implications for the Middletown Works," the union said in a written message to its nearly 2,700 workers. "We have requested AK Steel to provide us further information so we may assess our current bargaining position."
AK Steel spokesman Mr Alan McCoy declined comment on both the labor talks and the report of the buyout discussions. US Steel also declined comment on the report of the takeover talks.
Territory Iron to go ahead with plans to reopen Frances Creek
It is reported that Territory Iron has decided to push ahead with its plan to reopen the Frances Creek mine after finishing a feasibility study into the project. Company spokesman Mr Doug Stewart said that environmental reports are being finalized and native title issues are being negotiated with the Northern Land Council.
He said that the company has also had positive talks with Freightlink about transporting ore to Darwin. "Clearly because their railway line is 18 kilometers away from our mine, they are extraordinarily well placed to handle our product and I think it will add very substantially to the tonnage Freightlink is carrying on those lines," he said.
Territory Iron believes that it can produce one and a half million tonnes of iron ore a year to ship to China.
Steel pipe shortage feared for Alaska pipelines
Mr Sam Bodman USs Energy Secretary said while he does not expect to see any problems in sorting out the regulatory regime for the Canadian leg of the 5,700 kilometer Alaska pipeline, he is worried about finding enough steel. "I think there is an issue of production of pipeline, a shortage of manufacturing capability for the pipe required here," he said at a Canadian energy conference.
He said that a shortage of steel could be a problem for the Alaska and the Mackenzie Valley natural gas pipelines, especially if both projects go ahead in a similar time frame, the said yesterday. "If there are delays for one, there will be delays for the other" he added
Mr. Bodman said the US is counting heavily on the 4.5 billion cubic feet a day of gas that will come from the $20 billion Alaska pipeline. "It's a very important project for our country," he said. "It will provide enough gas in quantities that should have a real impact on our market place."
Coal miners strike in Irans Sanground coalmine
A local daily has reported that hundreds of coal miners from the northern province of Gilan in Iran are holding a strike inside Sangroud Mine, located near the town of Rudbar, in protest to not receiving their salaries for more than a year and the failure of the government to resolve the issue. Fellow miners and their families have joined the protesters.
The workers said that they went to the Office of Irans President Mr Mahmoud Ahmadinejad last week to protest their overdue salaries but to of no avail. The coal miners claim not to have received 13 months of salaries. They have vowed that they will not abandon their demonstration until their situation is adequately resolved.
South China region to import coal from Vietnam
The southern provinces of China will import 5 million tons of coal, mainly anthracite from Vietnam in the coming 3 to 5 years to ease energy shortage in the area. An agreement on coal cooperation has been signed by the Tianchang Investment Co Ltd. of Guangxi, Marubeni Corporation of Japan and National Coal and Mineral Group of Vietnam.
"The coal import is expected to help boost local economic development," said Mr Chen Wu vice chairman of the Guangxi Zhuang Autonomous Region.
Guangxi Tianchang Investment Co. Ltd is involved in the production of alcohol, petroleum and liquefied gas, and operation of harbor facilities specifically designed for coal. Marubeni Corporation of Japan is among the world's top 500 multinational corporations and the National Coal and Mineral Group f Vietnam is the sole firm in the country to do coal related business.
Blast at Kemerov coal mine kills one and injures three
One man was killed and three injured in a blast at the Krasnokamenskaya mine in the Kemerovo Region in Siberia on Saturday, the administration of the Kemerovo Region said. The injured miners were hospitalized and work was stopped at the mine.
A special commission has been set up to investigate causes of the blast. Governor of the Kemerovo Region Mr Aman Tuleyev said a compensation of some 1 million rubles ($36,000) would be paid to the family of the miner killed in the blast.
Azovmash to supply 350 tonnes converter to MMK
Azovmash, one of Ukraine's largest heavy machinery companies, will deliver a 350 tonne converter to Russia's Magnitogorsk Iron & Steel Works by the end of 2006, as per a report in a daily citing a recently signed contract.
Azovmash has already supplied about 15 pieces of equipment to MMK in 2005 including teeming ladle cars, slag and scrap cars and during January 2006 it supplied eight scrap buckets.
Azovmash makes tank cars, freight cars, metallurgical equipment, gantry and traveling bridge cranes, fuellers and consumer goods. The company has major customers in Russia, Hungary, Iran, Kazakhstan and Uzbekistan.
Stelco expects to delist shares by March 10
Stelco Inc said that its court supervised restructuring will be completed during March and it will seek the delisting of its current common stock March 10. Current shares will become worthless once the restructuring is completed, since the legally insolvent Hamilton steel maker's assets aren't sufficient to repay its creditors in full. Once the restructuring is complete, Stelco expects to issue new shares.
On Thursday, an Ontario bankruptcy judge extended Stelco's creditor protection to March 31, the latest extension in a process that has dragged on since January 2004 due to persistent negotiations among stakeholder groups.
Stelco CEO Mr Courtney Pratt said the company is "making progress in our drive to completion. Key stakeholders have agreed on an implementation timetable and we are committed to working toward a successful conclusion in the near future,"
The company also promised to have the biggest part of its final restructuring work done by March 17. On February 14, the Ontario Superior Court approved the company's plan to reorganize its corporate structure into nine new subsidiaries. The reorganization was demanded by Tricap Management Ltd., a Toronto restructuring fund that is lending Stelco $375 million. It will see Stelco's core Hamilton and Nanticoke operations separated and then further divided into business units dealing with steel, energy assets, coke batteries and land. The ninth unit would contain mining interests. All of the business units will be subsidiaries of Stelco.
Russian truck maker KAMAZ reports net profits
Leading Russian truck maker KAMAZ reported $1.98 million in net profits for the first nine months of 2005 against a loss of $706,638 during the same period in 2004, the company said in a report Thursday. Net revenues grew by 34.1% to $1.37 billion, and the cost of goods sold increased by 41.4% to $1.2 billion.
The KAMAZ Group consists of 110 enterprises and produces about 65,000 trucks annually.
Arcelor Huta Warszawa selects Danieli super flexible bar mill
Arcelor has selected Danieli as supplier of its new bar mill to be installed at the existing steel complex in Warszaw, Poland during last quarter. Installation of the new super flexible mill as a completion of the steel melt shop, also supplied by Danieli at middle 90's, will create a new state-of-the-art complete mini mill which will be one of the most advanced and highly productive plants of this type in Europe. Plant start-up is scheduled in 2007. The mill will be able to produce a very broad range of product sizes and steel grades.
The supply will be on a complete turnkey basis, excluding civil works, and will include all technological equipment making up the mill and all associated auxiliary plants and systems such as water treatment plant, emergency diesel generator, etc. The advanced L1 and L2 automation system, as well as all full digital AC type mill drives and electrical equipment for the whole mill and auxiliary services will be supplied by Danieli Automation.
The mill will be fed by a 160 tonnes per hour Danieli Centro Combustion walking hearth reheating furnace which will be directly connected to the existing continuous caster for direct hot charging of billets.
The 18 stand Danieli Morgdshammar mill will be entirely made up of heavy duty SHS housing less stands with automatic fast changing system for maximized mill efficiency and operation flexibility.
Core commissions post combustion system at Gerdau-Ameristeel
Pittsburgh based Core Furnace Systems Corp commissioned a KT oxy-fuel injection system for the electric arc furnace at Gerdau-Ameristeels EAF at the groups Sayreville based mini mill. The plants Consteel EAF now features three oxygen -gas injectors, two carbon injectors and one lime injector. Since the system was installed at Gerdau Ameristeel, the steelmaker has recorded significantly reduced specific electric power consumption for the EAF, and a better foamy slag condition, resulting in lower electrode consumption.
The oxygen-gas injectors deliver a stream of shrouded supersonic oxygen into the steel bath, while the patented water-air cooling system allows the injector to be positioned close to the bath, within the slag layer. According to Core, the KT system complements a traditional lime addition system by delivering lime via a specifically designated injector. Carbon is added through designated injectors, too, which Core states are more cost-effective and efficient than the traditional carbon-feeding methods.
Both the KT injection system and the Consteel process are proprietary technologies of Techint SpA, and Core Furnace Systems is the exclusive North American licensee for these technologies.
CMC acquires Arizona based Brost Forming Supply Inc
Commercial Metals Company headquartered in Irving Texas announced the acquisition of substantially all of the operating assets of Brost Forming Supply Inc. CMC will continue the Brost business activities under the name CMC Brost as a part of CMC Construction Services.
Established in 1976 with facilities in Phoenix and Tucson, Brost Forming Supply Inc specializes in concrete formwork, tilt-up and concrete-related products. The company services construction needs throughout the state of Arizona and has maintained a tradition of delivering quality products and services to the Arizona market.
Mr Russ Rinn President and CEO of the CMC Steel Group said "This acquisition is part of our broader growth strategy. By adding forming and construction products to our existing rebar fabrication business in Arizona, CMC now provides the Arizona contractor a complete package of materials and services. We will continue to build on the strong reputation for customer service and enhance our value to the contractors with additional technical expertise and broader product offerings."
Headquartered in Houston, Texas, CMC Construction Services is part of CMC's Domestic Fabrication segment and has 41 locations in 10 southern US states offering a variety of products and services including rebar fabrication, engineering services for tilt-up, forming and shoring, rentals and an extensive line of concrete-related construction materials.
Commercial Metals Company and subsidiaries manufacture, recycle and market steel and metal products, related materials and services through a network including steel mini mills, steel fabrication and processing plants, construction-related product warehouses, a copper tube mill, metal recycling facilities and marketing and distribution offices in the United States and in strategic overseas markets.
