March, 07 2006
Vietnam Steel Corp eying HRC mill JV with Essar
Vietnamese media it is reported that Vietnam's state run Vietnam Steel Corporation is seeking to build a $300 million hot rolling mill in a JV with Indian steel major Essar Steel Ltd.
If approved, the mill would be Vietnam's first to produce hot rolled coils and have a designed capacity of 2 million tons per year, the Dau Tu (Investment) newspaper quoted officials of the Vietnamese firm as saying.
They said the mill would be built in the southern province of Ba Ria-Vung Tau and construction would take around two years.
BJP wants revised MoU for POSCO
Orissas unit of the ruling BJP stuck to its stand on the controversial POSCO steel plant by reaffirming that it was not opposed to the plant per se and wanted the MoU to be amended to safeguard the interest of the state.
State BJP president Mr Juel Oram said the BJP wanted the MoU to be revised, particularly the clauses relating to export of iron ore, grade of ore and the SEZ status etc.
RPG Transmission bags order for TLT from PGCIL
RPG Transmission has received a new order worth Rs 1100 million from Power Grid Corporation of India Ltd. The scope of work includes supply and construction of 166 kilometer long 765kV Transmission Line associated with Sipat Stage I Transmission system. This Transmission line is being set up to evacuate power from Sipat Super Thermal Power Plant at Sipat, Chhattisgarh to Seoni Substation in Madhya Pradesh. The entire line is falling in the plains of Madhya Pradesh.
RPG Transmission is a leading player in the transmission line tower market and is already executing various orders for Power Grid, CSEB, RRVPNL etc. In the International market, the company is engaged in constructing a 132 kV line in Nigeria. With these orders the current order book of the company stands at around Rs 3500 million.
NMDC shares may be split
The government is considering the option of splitting the shares of National Mineral Development Corporation to reduce the price per share and put it within the reach of retail investors.
The government has already invited bids for appointing an adviser for the divestment of 15% of NMDC. Officials said the adviser to the NMDC issue was likely to be appointed by the end of the month.
Adhunik Metaliks to raise funds via IPOs for expansion
Adhunik Metaliks Ltd plans to launch on March 13 an initial public offer of shares to raise one billion rupees. The proceeds will be used to partly fund the company's expansion plans, estimated to cost 4.37 billion rupees, MD Mr Nirmal Agarwal told a news conference. The balance would be raised through debt, he said.
The expansion is aimed at increasing the company's annual production capacity to 440,000 tonnes from the present 250,000 tonnes, he said. The increased capacity would help the company cater especially to the India's growing automotive component industry, he said. The project would be completed by early 2009, he added.
Mr Agarwal claimed that the company enjoyed low input costs, thanks to captive coal and iron ore mines allocated to it by the state government of Orissa in eastern India. "Our cost for iron ore is about $3 per tonne while Chinese companies incur as high as $90 per tonne," Mr Agarwal said. He said Adhunik's iron ore mines are estimated to have 50 million tonnes and the coal mine 60 million tonnes.
CVRDs profit soars by 73% in Q4
Brazil's CVRD, the world's biggest iron ore miner, posted a 73% increase in fourth quarter net profit. CVRD reported net profit of 2.6 billion reais ($1.2 billion), up from 1.5 billion reais a year earlier.
EBITDA rose to 4.2 billion reais in the last three months of 2005 from 3 billion reais a year earlier. Net revenues rose to 8.9 billion reais from 7.4 billion.
CVRD has a recorded profit of 10.4 billion reais in 2005, up from 6.5 billion reais in 2004.
Linde buys BOC for $14 billion to become largest player
Linde AG of Germany agreed to buy UK based BOC Group Plc for $14 billion to become the biggest maker of industrial gases used in factories, oil refineries and hospital operating rooms. BOC said it would recommend Linde's bid to shareholders after spurning a 1,500 pence approach from the Linde on January 24.
A combination of Linde, the 5th largest gases producer and BOC the No 2, will overtake Air Liquide SA of France and create a company with 22% of a $53 billion global market that includes hydrogen used to make cleaner fuels and oxygen for respiratory patients. As of 2004, Air Liquide had 18% of the industrial gases market. BOC had 13%, Connecticut based Praxair had 11%, Pennsylvania based Air Products & Chemicals Inc had 10% and Linde had 9%, according to the German company. Linde last year got 20% of sales in Germany and 51% in the rest of Europe. At BOC's main gases units, 35% of business comes from Asia and 30% from the Americas.
Linde and BOC are a perfect match,'' said Lindes CEO Mr Wolfgang Reitzle. We will be able to offer our customers a significantly enlarged product range as well as comprehensive services, and we will be able to do so worldwide.''
Linde said it secured 15 billion euros of credit to fund the deal, refinance existing debt and provide working capital. It's backed by Commerzbank AG, Deutsche Bank AG, Dresdner Bank AG, Morgan Stanley and Royal Bank of Scotland Group Plc and plans to issue bonds and raise as much as 1.8 billion euros from selling new shares.
Arcelor CEO says that Mittal Steel won't succeed with this offer
Mr Guy Dolle CEO of Arcelor declared on Monday that Mittal Steel has no chance to succeed in its takeover bid with its current bad offer, but added that Arcelor's board would have to consider an all cash proposal on the sidelines of conference
Mr Dolle said an overwhelming majority of the Arcelor shareholders his company has met, representing about half of Arcelors shares, still oppose the cash-and-stock offer despite Mittal's charm offensive to win support for it. "The deal, with this offer today, will never succeed," Mr Dolle told reporters before addressing the conference sponsored by the Steel Business Briefing trade publication. "Shareholders are not pleased" with the current terms, he added. "Of course, a cash offer would be easier to compare to the value they have in mind," Dolle said. "If it is a cash offer, the board has to evaluate it."
Speaking to reporters earlier, Mr L Schorsch CEO of Mittal Steel US said that Mittal Steel's current offer should be sufficient despite continuing opposition to the deal in Europe. He said the price already is up by more than 30% from the amount set before the cash and stock deal was announced in January because of the rise in the two companies' shares. "By any historical standards that's a very robust premium," said Mr Schorsch. "Obviously any shareholder would like more. But the logic of why we have to give more, unless there is some other bid that emerges, is not good" he added
Arcelor pledges to thwart the deal through its shareholders, who will have the final say, while Mittal Steel has mounted a campaign touting its benefits to both the shareholders and the European countries where Arcelor's mills are based.
Strategic partnership by Arcelor for Moroccan Sonasid
Arcelor, SociNationale d'Investissement (SNI, Morocco) and the reference shareholders of Sonasid (MAMDA-MCMA, Axa Assurances Maroc, RMA-Watanya, CIMR, and Attijariwafabank) have signed a strategic partnership agreement for the development of Sonasid (SociNationale de Sidurgie) on March 3rd 2006. Arcelor said that the main objective of the agreement is to consolidate and develop the position of Sonasid on the Moroccan market and to allow it to benefit from the transfer of Arcelor's technologies and skills in the long carbon steel product sector. Furthermore, Arcelor and SNI have agreed to jointly analyze the possibility of Sonasid becoming a platform for future developments in the region. This ambitious project will be value accretive for Sonasid and for all its shareholders. It will enable Arcelor to strengthen its positions in markets with a high growth potential.
This agreement foresees, in particular, that, subject to the fulfilment of certain suspensive conditions, Arcelor, SNI and the reference shareholders will group their respective stakes in Sonasid's capital by transferring their Sonasid shares, at a price of MAD 1,350 per share, to a holding company specifically created for the purpose. Concomitantly, Arcelor will subscribe a reserved all-cash capital increase, after which the capital of the holding company will be distributed 50/50 between Arcelor and the group of shareholders formed by SNI and the current reference shareholders of Sonasid. These operations are conditional upon the authorization of the competition authorities. At the end of this stage, the holding company will hold 64.86% of Sonasid's capital.
SociNationale de Sidurgie (Sonasid) is the reference player in the Moroccan steel industry. The company holds a leading position in the long products sector (rebars and wire-rod), with a production capacity of around 1.4 million tonnes per year, and a turnover of close to 4 billion dirhams (approximately 374 million euros ) in 2004. The company is listed on the Casablanca stock exchange, and its current market capitalization amounts to close to 5.2 billion dirham.
Created in 1966, SociNationale d'Investissement (SNI) is a financial holding company listed on the Casablanca stock exchange, which actively participates in projects that are value accretive for the country. The main items in SNI's portfolio are its investments in ONA, Lafarge Maroc and Sonasid. The company is the main shareholder of Groupe ONA, the first private industrial and financial group in Morocco. At 31 December 2004, the consolidated turnover of the company amounted to 1.7 billion dirhams (approximately 155 million euros), with a consolidated net profit of 467 million dirhams (approximately 43 million euros).
China's key transport infrastructure projects for 2006-2010
As per a report in a Chinese daily, following are the key transport infrastructure projects China is set to build during the 2006-2010 period, listed in the draft guidelines of the five-year development blueprint being deliberated by Chinese lawmakers at their ongoing annual session.
1. Railway - Six railways for passenger transportation, including one between Beijing and Shanghai; five inter city railways, including one between Beijing and Tianjin; and the upgrading of five existing railways including one between Datong and Qinhuangdao.
2. Highway- 14 expressways including one from Beijing to Hong Kong and Macao.
3. Port - Transit systems for the transportation of coal and imported oil, gas and iron ore, and containers transport systems at 12 seaports including those in Dalian, Tianjin and Shanghai; coal transit and storage bases in eastern and southern China.
4. Shipping The third-phase project for dredging the deepwater channel at the mouth of the Yangtze River, the course at the mouth of the Pearl River to the sea, channel dredging in the Yangtze and Pearl River valleys and the Beijing-Hangzhou Canal; and acceleration of port construction along inland rivers.
5. Airport - expansion of ten airports including those in Beijing, Shanghai and Guangzhou; relocation of the two airports in Kunming and Hefei; and airports in central, western and northeastern China to accommodate flights on feeder lines.
Mittal Steel denies considering Arcelor vote concession
The Mittal family denied on Monday it was considering letting its voting stake in the world's biggest steel group drop to below a majority in a bid to win over institutional investors in Arcelor.
The Financial Times had quoted an unnamed advisor to Mittal Steel as saying that Mr LN Mittal was being urged to consider such a move in order to get sufficient backing for his share and cash bid for Arcelor stock. "A lot of Arcelor shareholders want Mr Mittal to lower his overall stake, and also to agree to all investors having the same voting rights," the Financial Times newspaper quoted an adviser as saying.
"We have said right from the start of this process that we have no intention of changing the offer and that Mr Mittal will not reduce his holding in the company any further," a Mittal Steel spokesman said in an email reply to inquiries. "We have already reduced the voting rights from 10-1 to 2-1, we have no intention of reducing them further. No such options are being studied by Mittal advisors," he added.
TMK completes deal to buy German Sinara Handel
Leading Russian pipe producer TMK has completed a deal to buy Germany's Sinara Handel GmbH, which holds controlling stakes in Romania's pipe producer SC ARTROM SA and metal works SC CSR SA. TMK purchased 100% of the German company's charter capital in accordance with its expansion strategy, the company said in a statement.
Established in 2001, TMK Pipe Metallurgical Company is the world's second largest steel pipe producer and the third biggest seamless pipe manufacturer for the oil and gas sector. TMK is the largest holding in Russia's pipe production industry, accounting for about 44% of domestic pipe output. TMK Steel Limited and Dalecone Limited are the company's core shareholders.
The company produced 2.86 million metric tons of pipes in 2005, of which exports amounted to 750,000 tonnes to more than 60 countries, with clients including Shell, Total and Repsol. Domestically, the company produces pipes for natural gas giant Gazprom, state owned oil major Rosneft, oil firms TNK-BP, Lukoil, Sibneft and others. Apart from the oil and gas industries, TMK supplies pipes to the chemical and petrochemical, machine-building, energy and construction sectors.
Arcelor's employee shareholders urge against sale
It is reported that Arcelor SA employee shareholders on Monday urged others to retain their stake in Arcelor, saying That Mittal Steel was more eager to win over the French government than shareholders.
The Association des Actionnaires Salaries d'Arcelor slammed Mittal Steel's move last week to outline its takeover plan to the French government instead of shareholders, saying this led them to conclude that they were unimportant. "It is obvious Mittal Steel's project doesn't place shareholders at the heart of its strategy. Their behavior seems clear: it's a matter of taking power and disregarding (shareholders') interests," AASA said in a statement. "The employee shareholders' association maintains its position and encourages all shareholders to hold on to their Arcelor shares."
AASA's 20,000 members own about 1.9 percent of Arcelor.
Hitachi Metals and Daido Steel form business alliance
Hitachi Metals Ltd and Daido Steel Co Ltd reached an agreement to form a comprehensive business alliance primarily in the specialty steel field. The two companies have formed this business alliance in order to respond to increasing international competition, a result of both the globalization of business and increasingly stringent customer demands for high quality products, both in Japan and abroad. To deepen mutual trust and cooperation, and to facilitate a smooth alliance, the two companies have agreed to purchase each other's shares at an amount equal to 1% of total shares in the first stage of the alliance.
Both Hitachi Metals and Daido Steel are engaged in the manufacture of specialty steel, a product whose role in underpinning industrial infrastructure necessitates a high degree of reliability. The companies see as essential the concentration of management resources on maintaining and bringing manufacturing skill and capability - the foundation of the business - to a higher level. They aim to mutually enhance business efficiency through effective utilization of both companies' management resources, and to further strengthen their competitive position in the international arena.
The business alliance will entail
1. Mutual original equipment manufacturing (OEM) supply by efficiently utilizing upstream production facilities
2. Joint development, with the goal of enhancing manufacturing technologies
3. Stable and efficient procurement of raw materials, resources and equipment
Additional areas and items may be added to the scope of the alliance in the future, in the event that there is mutual potential for benefit and the companies are able to agree on terms.
Senior management appointments at BHP Billiton
BHP Billiton announced several management appointments designed to broaden the experience of a number of its senior executives in continuation of the talent development program announced in December 2005. All appointments will be effective 1 April 2006.
Mr Bob Kirkby, currently President of Carbon Steel Materials has announced he plans to retire from BHP Billiton on 31 December 2006. Until his retirement, Bob will serve as Executive President. He will retain responsibility for our Energy Coal business and continue to have oversight of the corporate functions of Group Supply and Project Development Services as well as responsibility for BHPBs country offices in Brazil, India and Mongolia. Mr Kirby will continue as a member of the Office of the Chief Executive and Chairman of the Executive Committee until his retirement.
Mr Chris Lynch, currently Chief Financial Officer, will be appointed Group President of Carbon Steel Materials which includes Iron Ore, Metallurgical Coal and Manganese businesses. Mr Lynch will continue as an Executive Director and as a member of the OCE. Mr Lynchs experience with key processes for project approval, performance management and financial oversight, as well as his previous operating experience, will fit well with the requirements of this critical part of BHP Billiton.
Mr Alex Vanselow, currently President Aluminium will replace Mr Chris Lynch as Chief Financial Officer and will join the OCE. Mr Alex has an extensive knowledge of BHP Billiton and its businesses. Mr Alexs familiarity with the company and its financial process combined with his operating experience provides an outstanding opportunity to further align the corporate objectives with the activities of the CSGs. Mr Alex will be based in Melbourne.
Mr Graeme Hunt, currently President Iron Ore will replace Alex as President Aluminium. Mr Graemes success in developing and managing the delivery of our significant growth pipeline within our iron ore business provides an excellent background for his new role. Mr Graeme will be based in London.
Coal mine blast in Vietnam kills eight
An underground explosion killed eight Vietnamese coal miners in the northern province of Quang Ninh, state media reported. The bodies of the eight killed were recovered immediately after the accident early on Monday.
State media quoted industry officials as saying methane gas was believed to have triggered the explosion.
Algoma confirms merger talks
It is reported that Algoma Steel Inc has confirmed that they are currently talking to several unnamed companies that are interested in acquiring Algoma. The company announced this in a proxy circular mailed to shareholders last.
The company said they were considering several options including mergers, sales of the company as well as other business combinations when released their 2005 financial report. No deal has been finalized but some of the interested parties have been granted access to Algomas books and they were also allowed to conduct due diligence.
Workers union &AK Steel to resume talks on Tuesday
AK Steel and the independent union representing nearly 2,700 hourly locked out employees at the Middletown Works plant will resume bargaining Tuesday, both sides said Monday. Negotiators met briefly on Saturday, their only session since their labor contract expired February 28 and the company locked out members of the Armco Employees Independent Federation. Salaried employees and replacement workers have been running the mill.
AK Steel has said it needs to cut labor costs to be competitive. Its latest proposal would reduce the work force, slash job classifications, freeze pensions and charge workers for some of their health insurance.
The union says it's already made sacrifices and done its part to keep the company competitive with long hours and increased productivity.
AK makes flat-rolled carbon steel, as well as stainless and electrical steel used in cars and appliances.
Maverick Tube to sell premium OCTG tubes of Oregon
Maverick Tube Corporation announced today that it has entered into a marketing agreement with Rocky Mountain Steel Mills, a division of Oregon Steel Mills, Inc, whereby Maverick will have the exclusive worldwide right to market and sell RMSM premium seamless OCTG products. This agreement is for a minimum of 48,000 tons per year and commences immediately. The agreement supersedes any previously announced agreements and follows the successful start-up, in December of 2005, at Oregon Steel's Rocky Mountain Steel Mills seamless pipe mill in Pueblo Colorado.
Mr Jeff Shorter Maverick's VP & GM said, "We are very excited about adding premium seamless OCTG products to our portfolio. As our alloy expansion nears completion, this was the next logical step to continue to improve our access to the deeper wells our customers are drilling in all parts of the world. We expect that this arrangement will help improve the alloy component of our 2006 US OCTG revenues to between 60% and 70%." Mr. Shorter continued, "This partnership is a win for everyone. Maverick broadens and upgrades its product portfolio, our customers have access to premium seamless OCTG products and RMSM gains an efficient, experienced sales force with access to multiple markets."
Mr Rob Simon VP & GM of Rocky Mountain Steel Mills, said, "We are pleased about the reopening of our seamless mill and the successful start-up we experienced in December 2005. With the investment we are making in this facility, we continue to expand our offerings of value-added products. This agreement with Maverick Tube allows us to combine our process and manufacturing expertise with the sales and marketing skills of Maverick to bring our product to market."
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 used in various applications.
Rocky Mountain Steel Mills is a division of Oregon Steel Mills Inc Oregon Steel Mills is organized into two divisions. The Oregon Steel Division produces steel plate, coil, small and large diameter line pipe, casing and structural tubing from plants located in Portland, Oregon and Camrose, Alberta, Canada. The Rocky Mountain Steel Mills Division, located in Pueblo, Colorado, produces steel rail, rod and bar, and seamless tubular products.
Kuzbass raises coal output 1.3% in 2 months
Russia's Kemerovo region, home to the coal rich Kuznetsk coal basin or Kuzbass, increased coal production by 1.3% YOY in January to February to 26.845 million tonnes, the regional administration's press office said, quoting the region's Fuel and Energy Department.
The administration said 12.816 million tonnes of coal were produced at underground mines and 14.029 million tonnes were produced at open pits.
Coal production by major Kuzbass producers in January to February 2005
Kuzbassrazrezugol Coal Company - 6.412 million tonnes
Siberian Coal and Energy Company - 4.188 million tonnes
Yuzhny Kuzbass Coal Company - 2.633 million tonnes
Yuzhkuzbassugol Coal Company - 2.347 million tonnes
Raspadskaya Coal Company - 1.609 million tonnes
Sibuglemet Holding - 1.492 million tonnes.
Nigerian Jos Steel Mills to increase production
Nigerias Jos Steel Rolling Mills, formerly known as Zuma Steel West Africa Limited, said that it has invested N2 billion in its rehabilitation so that the it can produce 210,000 tonnes of steel per year from next month, thereby achieving 100% capacity utilization.
Dr Innocent Ezuma MD said We have also planned for an expansion of the factory so that we can produce 450,000 tonnes per annum.
ABB wins further orders of SVCs from steel mills
ABB, the leading power and automation technology group reported another five orders for static var compensators (SVC) for steel mills around the world. The orders are a continuation of the successful year 2005. The new contracts for plants in Canada, Greece, Spain and the US are for SVCs with power ratings of between 64 and 200 Mvar.
The strong demand for cutting-edge SVC technology is continuing after a highly successful year in 2005, said Mr Samir Brikho, head of ABBs Power Systems division. These orders demonstrate that customers appreciate how this technology can help them to increase production.
Static var compensators stabilize massive voltage disturbances caused by electric arc furnaces during the steelmaking process, securing power quality and significantly higher levels of production. They do not require additional investment in other components in the steelmaking process.
ABB has delivered more than 200 SVC installations to the steel industry worldwide and has a pioneering tradition in the field as the innovator of both SVC and SVC Light, the latter a unique technology that creates a smooth and stable voltage in the melting process and reduces flicker and harmonics to levels impossible to reach with conventional SVCs.
Thai SS maker plans 15% rise in revenue in 2006
Thai integrated stainless steel maker Thai Unique Coil Centre Plc has targeted its revenue this year to reach 1.5 billion baht with plans to boost value added products to maintain margins. The 2006 revenue projection represents a rise of 15% from 1.23 billion baht last year. Export sales are to grow to represent 5% of total revenue this year, compared with 0.14% in 2005.
CFO Mr Songchai Leelavanitkul said ''We plan to do marketing both locally and aboard. We will export our products to new markets such as the Middle East, Europe and Asia,'' he added.
TUCC last year bought four new machines to boost its production capacity by 18,150 tonnes per year to 52,675 tonnes and expanded its factory at the Banpu Industrial Estate. This year, the capacity will be increased further to 65,150 tonnes per year.
TUCC manufactures stainless piping and finished stainless surfaces, as well as providing cutting services for stainless steel, galvanized sheets and other metals. It is the first fully integrated stainless steel producer in Thailand.
Australia's Aztec hopes to keep Koolan Iron forecasts
Aztec Resources Ltd believes that it can meet a tight deadline of late this year for the first shipments from its A$108 million Koolan Island iron ore project off the coast of Western Australia. "It is an aggressive target and that is what we are planning to achieve," said Mr Peter Bilbe, managing director of Perth-based Aztec. "If we have some slippage, we don't expect it to be more than one or two months," he said in an interview with Dow Jones Newswires.
Mr Bilbe said that Aztec expects to receive final approvals from the Western Australian government late this month, allowing construction to begin late April.
Aztec aims to start production at a rate of two million metric tons per annum. It hopes to build up to four million tons in the third year of operations at Koolan, a former BHP Billiton mine that was closed in 1993. The ramp-up schedule calls for construction of a "sea-wall" by Aztec that will prevent water from the Indian Ocean flooding into Koolan's main pit.
Aztec has preliminary agreements to sell around four million metric tons per year of iron ore to a mix of customers, Bilbe said. The buyers include Marubeni Corp, Sumitomo and Mitsubishi of Japan and Citic, China Metals and Sinom of China. Aztec expects to convert the deals into firm sales contracts "within the next two months", he said, with the contracts to be linked to annual benchmark iron ore prices.
UK based Cambrian Mining plc owns 28.6% of Aztec. The next biggest shareholder, JP Morgan Chase, has 6.1%.
Nigerian government invites tenders for mining
Nigerian Bureau of Public Enterprises has called for tenders from companies, both local and foreign, wishing to invest in and acquire interest in all the titles to huge mineral deposits held by the Nigerian Mining Corporation. BPE announced that sale of the NMC and its properties to private investors, was part of the ongoing reform program in the solid minerals sector.
The preliminary data packages for NMC and its properties will be available from the offices of the Ministry of Solid Minerals Development or the BPE.
The NMC and its mineral deposits up for grabs include Gold, Lead, Zinc, Silver, Cassiterite, Tantalite, Rutile, Tin, Mica, Kaolin, Talc, Phosphate and Columbite. Others are Gypsum, Magnesite, Barite, Bentonite, Molybdenite, Wolfr-amite, Limestone, Gemstones, Diatomite, Soda Ash, Molybdenite, Feldspar and Quartz.
Urals Steel buys scrap company in Orenburg region
Urals Steel, a division of the Russian Metalloinvest group has acquired 99.29% of Vtorchermet Orenburg Region, a scrap collection company for 200 million rubles from Maxi Group.
Vtorchermet has 19 scrap yards and accounts for about half the scrap metal collected in the Orenburg region. About 400,000 to 450,000 tonnes of scrap metal are collected in the Orenburg region annually. Vtorchermet plans to ship 200,000 tonnes of ferrous scrap this year, compared to 90,000 tonnes in 2005, and aims to increase this figure to the technical maximum of 300,000 tonnes in two years.
Vtorchermet will supply scrap to Urals Steel's electric steelmaking facility, the modernization of which will increase the company's scrap needs to 1.2 million to 1.3 million tonnes from the current 1 million tonnes.
Ural Steels deputy commercial director Mr Vadim Dadyka told Interfax
"Due to high prices and freight tariffs for scrap, right now it is fundamentally important to tackle the problem with scrap procurement in regions that are close to core production facilities. That is why this asset was chosen. For example, if a tonne of ferrous role now costs 5,000 rubles, the rail freight tariff from the Tyumen region is 1,000 rubles."
Qasco chief denies shortage of steel in Qatar
There is no shortage of steel in the country despite the huge demand, although there may be some delays in the distribution chain that are due to other factors, Sheikh Nasser bin Hamad Al Thani, Director and General Manager of Qatar Steel Company told reporters. "We are still covering 100 per cent of the demand in Qatar. However, sometimes in the chain of supply between us and the customer there may be delays because of either payments or transportation related issues", he said at a function marking the company's safety record.
He said steel consumption in Qatar has witnessed a sharp increase for the last three years rising from 350,000 tonnes in 2004 to 640,000 tonnes in 2005 and is expected to reach 700,000 tonnes in the coming years. He added that Qasco's market share in the GCC stands at 10 % currently and is expected to increase to 20%.
Qasco, a wholly owned subsidiary of Industries Qatar is currently in the midst of expansion that will triple its Direct Reduction Iron production capacity from 800,000 tonnes to 2.4 million tonnes per year and double the Reinforced steel bar production capacity from 800,000 tonnes to 1.4 million tonnes per year.
ThyssenKrupp doesn't need to sell auto unit for Dofasco buy
ThyssenKrupp AG said it doesn't need to sell its car part unit to finance a possible takeover of Canadian steelmaker Dofasco Inc. The Wall Street Journal earlier reported that ThyssenKrupp may sell the unit, citing unidentified people familiar with the situation.
CEO Mr Ekkehard Schulz hasn't changed his stance on the unit Mr Klaus Pepperhoff, a spokesman for company said. Mr Schulz has previously said he may sell parts of the car unit in the US. We could finance Dofasco without a sale of the car unit,'' Mr Pepperhoff said.
Romanian authorities investigating state aid to Lamdro
In a press release Romanian Competition Council has informed that Drobeta Turnu-Severin based Lamdro is being investigated by them towards state aid granted during 2002 amounting to almost half a million euros from exemption of tax delay penalties.
The state incentive was granted as provided by an association protocol of Romania and the European Union, regarding trade with iron and steel products. According to the Competition Council however, Lamdro was not on the list of iron and steel companies that could benefit from state aid as part of the strategy for the restructuring of the iron and steel sector.
Mittal Steel to fund steel museum at mall in Clevelnad
Mittal Steel announced its plans to fund a museum honoring the steel industry's long history in northeast Ohio with exhibits that will be part of a new shopping plaza being built on a former steel yard in Cleveland. The company said it plans to create interactive exhibits with company artifacts, including a turn-of-the-century brick building used as a place for workers to punch in and out and a railroad car once used to transport molten steel.
The suburban-style shopping mall slated to open in 2007 was approved last year by city officials after much debate. The plaza plan promises 1 million square feet of shopping space, including four so-called big-box stores, a supermarket and several retailers and restaurants. The $90 million project is to be built on more than 120 acres south of downtown Cleveland near interstates 71 and 90 and the Jennings Freeway.
"Mittal is excited about the opportunity to take the lead in honoring the heritage of the past century while shaping Cleveland's economy for the future," said Mr Terry Fedor, general manager of Mittal's Cleveland plant, which is just west of where the mall will be.
"As a city with a grand industrial past, the city of Cleveland is glad to see Mittal's commitment to keeping that history alive," Cleveland's planning director Mr Robert Brown said.
Mittal Steel took over the operations when it merged with International Steel Group Inc., which had demolished much of the mill's historic buildings and equipment, including blast furnaces that had been run by generations of Ohioans. When Steelyard Commons was first discussed, some had expressed concern that all reminders of the industry eventually would be torn down without a museum or similar effort.
Cape Lambert to list on AIM in London
Cape Lambert Iron Ore Ltd has announced that it intends to apply for Admission on London Stock Exchange's AIM market. This will be via a fast-track compliance listing that is expected to occur by mid April. Following the successful Admission on AIM, the Company's shares will be dual listed on the Australian and UK (AIM) stock markets.
The Company is proposing to list its securities on AIM for the purpose of maintaining and enhancing its global profile and gaining greater exposure and access to European-based capital, enhancing the fundraising ability of the Company.
Danieli to supply automatic stacking facilities at Performa
Danieli Morgdshammar has been awarded the order for the supply of a new automatic staking plant to Performa SA in Argentina, formerly known as F Bonelliy Cia, for upgrading and completion of the existing San Nicolas section mill finishing end. Startup of the new facilities is scheduled for the end of year 2006.
The 12 meter long single head magnetic stacker, to be installed at delivery side of the existing straighteners and cold cut to length facilities, will be suitable to process 19 to 76 mm angles, channels, beams, flats, tees and up to 38 mm round and square bars at rates of 40 tonnes per hour in a first stage. The unit will be able to handle two 6 meters long or one 12 meters long bar layers for formation of regular stacks with minimum weight of 1 ton and maximum weight of 4 tonnes, automatically strapped or tied. Danieli Automation will supply the automation and electrical.
Future extension with an additional sector for reaching an overall length of 18 meters is foreseen for coping with production capacities of up to 60 tonnes per hour.
