October, 28 2006
JSLs net profit for Q2 up by 120% YoY
Jindal Stainless Ltd has posted net profit of Rs 97.05 crore during July to September 2006-07 up by 120% YoY as compared to Rs 44.02 crore in July to September 2005-06. JSLs net sales in Q2 of 2006-07 also increased by 41.7% YoY to touch Rs 1,144.64 crore as against Rs 807.38 crore during Q2 of 2005-06.
The company recorded 101.8% increase in EBITDA which rose to Rs 235.77 crore during the quarter. The quarter results include revenues generated by the Orissa plant which was not in operation last year.
Mr Ratan Jindal vice CMD of JSL "I believe the financial performance is sustainable. We have changed the product mix to higher value added products which is in demand in the export market. As a strategy we are also looking at more exports compared to domestic sales going forward."
Mr Ratan Jindal added "The demand scenario is also positive. This year itself the global demand for stainless steel which was projected to rise by 8.4% as recent as May this year has been revised and is now projected to grow by 14.3% by the International Stainless Steel Forum."
Balmer Lawrie aims to reach 2000 crore turnover by 2010
Balmer Lawrie is targeting a turnover of Rs.2000 crore and a profit before tax of Rs.200 crore by 2010 and has undertaken a Rs.24 crore expansion program to achieve these targets. The expansion plan envisages setting up of a steel barrel plant at Asaoti in Haryana and expansion of its container freight station in Chennai.
The barrel plant will be set up at an estimated cost of Rs.12 crore. It will manufacture closed and open top mild steel barrels, galvanized barrels and lacquer lined barrel of 200 & 210 liter capacity. Land for this project is already available with the company and work on the project has commenced. The barrel plant is likely to start generating revenue during the fiscal year 2007-08.
The capacity of the companys container freight station in Chennai is being expanded by developing additional area of seven acres to allow the storage & handling of larger number of containers. The investment in this project, excluding the cost of land, will be Rs.12 crore. Work has already begun and is expected to be completed before the year end.
Mahagitsiri family unlikely to sell Thainox to JSL Report
Bangkok Post citing a source at Thainox has reported that the Mahagitsiri family, a major shareholder of Thainox Stainless Plc, is unlikely to sell its majority holding to the Jindal Stainless Limited. The report mentions that its founder Mr Prayudh Mahagitsiri and his family intended to keep their stake in Thainox in order to reap benefits from the lucrative business.
The report cites the Thainox source as saying that "I am confident that the current major shareholder group will turn down the offer. It's highly likely they'll keep their stake in Thainox due to the fact that Thainox has just recovered from a downturn of the past several years.
But an industry source did not rule out the acquisition by JSL since Mr Prayudh had failed to raise 4 billion baht in capital via a public offering of new shares last year to finance a 14 billion baht hot rolled coil project.
There were reports in the media that JSL is close to acquiring Thainox last week to penetrate the Thai market.
CCEA approves ECLs Jhanjra Phase II
Coal India Limiteds subsidiary Eastern Coalfields Limiteds Jhanjra Underground Project in Raniganj Coalfield in the Burdwan district of West Bengal, which has been contributing to losses to ECL due to its underground mines having low unit production & low productivity, difficult geo mining conditions, limited scope of mechanization and excessive man power etc, has received governments support by way of non plan loans, retention price mechanism and debt equity swap through capital restructuring of CIL.
Indias Cabinet Committee on Economic Affairs gave approval for Jhanjra Phase II Longwal Underground Mine for a coal production capacity of 1.7 million tonnes per year at an additional capital investment of Rs.287.17 crore.
JSL sees firm SS prices
Jindal Stainless Limited expects stainless steel prices to remain firm for next 2 to 3 quarters.
Mr Ratan Jindal during an interview with CNBC-TV18 said Stainless steel is also being recognized by the government of India as a separate entity and separate product. It has a strong market as stainless steel is actually replacing lot of competitive material like steel and plastics and few other materials. I am seeing a very good growth going forward and stainless steel prices should also remain quite firm for next two-three quarters.
Mr Ratan Jindal while answering a question about effect of rising nickel prices on JSLs margins said We are world leaders in 200 series. There are three typical grades of stainless steel, 200, 300 and 400. There is a 400 series, which is without nickel and there is 200 series, which contains low nickel. So both these grades are growing at a much faster pace .We are the leaders in 200 series, and also making our presence felt in 400 series.
BHELs net profit for Q2 up by 38.3% YoY
Bharat Heavy Electricals Ltd has posted a net profit of Rs 3600.10 million for July to September 2006 quarter up by 38.3% YoY as compared to Rs 2601.60 million for July to September 2005.
BHELs income net of excise has increased from Rs 26159.50 million for July to September 2005 to Rs 35110.40 million for the July to September 2006 quarter.
Balmer Lawrie records 47% growth in bottom-line
Balmer Lawrie & Co Ltd has reported that although its turnover during April to September 2006 is marginally down from to Rs.635 crore from Rs.639 crore in April to September 2005, the profit after tax for the increased by 46.9% YoY to Rs.37.13 crore in H1 of 2006-07 as compared to Rs.25.27 crore in H1 of 2005-06.
The release mentions that companys focus is now to seek high value addition in its various businesses to achieve a healthy growth in bottom line and that this strategy is reflected in the performance of the first six months.
Steel Strips Wheels starts truck wheel supplies
Steel Strips Wheels Ltd has announced commencement of supplies of truck wheels to one of the major manufacturers in India. The release adds that SSWL expects to commence supplies of Truck Wheels to other major manufacturers of LCVs & MCVs by the end of the current quarter.
The Truck Wheel Project has been set up with an installed capacity of 0.5 million wheels per annum. The Company is targeting all the LCV & MCV manufacturers in the country. The Company has earlier also announced its "Jamshedpur Truck Wheel Project", which is in addition to the above.
Suzlons Chinese subsidiary secures 50MW order
Suzlon Energy Ltd announced that its owned Chinese subsidiary Suzlon Energy (Tianjin) Ltd has received a new order of 50 MW of wind turbine capacity from China and that the deliveries are slated for financial year 2007-08.
The release adds that, with this order, Suzlon has a consolidated order book position of Rs 6637.87 Crores, with Rs 5813.71 Crores in international orders and Rs 824.16 Crores in domestic orders.
BEMLs net profit increases by 25.7% YoY in Q2
Bharat Earth Movers Ltd has posted a net profit of Rs 365.70 million for July to September 2006 quarter up by 25.7% YoY as compared to Rs 290.80 million for July to September 2005.
BEMLs total income net of excise has increased from Rs 3754.80 million July to September 2005 to Rs 6187.80 million for July to September 2006.
Suzlon Energys net profit in Q2 up by 6% YoY
Suzlon Energy Ltd has announced un audited results for the July to September quarter of 2006-07. It has posted a net profit of Rs 2534.9 million for Q2 of 2006-07 up by 65 YoY as compared to Rs 2389.5 million for Q2 of 2005-06. Its total Income during Q2 of 2006-07 increased by to Rs 12981.5 million up by 18% YoY as compared to Rs 10992.8 million for Q2 of 2005-06.
Suzlon has realigned its operations and has commenced sale of tubular towers through one of its wholly owned subsidiary. Accordingly, the standalone results for the quarter ended September 30 2006 do not include the sale of tubular towers aggregating approximately Rs 1188.10 million and Rs 2125.10 million respectively which have been sold through the wholly owned subsidiary. Accordingly, the sales realizations and gross margins for standalone results during the quarter ended September 30, 2006 are to that extent not comparable with the standalone results of prior periods presented.
TATA Power appoints Mr Grove White as COO
Mr Gerald Frank Grove White has been appointed as ED & COO of TATA Power with effect from October 30. Mr Grove White was MD of Australias 3rd largest power generating company Eraring Energy.
TATA Power in a statement said "Mr Grove White brings with him nearly 18 years of proven expertise in the global power sector. A mechanical engineer from City University, he has previously worked with Powergen as General Manager and Managing Director overseeing operations and development in India."
China revises export import duties
An official statement posted this afternoon on the website of China's ministry of commerce said that China will slap a 10% provisional export duty on exports of semi steels (billet/slab), ferroalloy and pig iron effective as of November 1st 2006.
According to the statement, the export duty structure would be
1. 5% provisional export duty shall be imposed on exports of coal, coke and crude oil
2. 15% on exports of 11 non ferrous products including copper, nickel and electrolytic aluminum
3. 10% on ferroalloy, pig iron and semi steels (billet/slab)
4. 10% on iron ore concentrate, copper concentrate and bauxite
According to the statement, the import duty structure would be
1. Alumina from 5.5% to 3%
2. Scrap cast iron 0%
3. Coal from 5% to 1%
4. Anthracite from 3% to 1%
5. Oil product from 5% to 2%.
The new policy is meant to try and control exports of high polluting and energy consuming products and keep valuable resources at home.
(Sourced from Mysteel.net)
Arcelor Mittal to combine laser welding activity with Noble
Arcelor Mittal and Noble International Ltd have agreed to combine their laser welded tailored blanks businesses and Arcelor Mittal is to become the largest stockholder of Noble following the closing of the transaction.
On October 27th 2006, Noble and Arcelor SA signed a binding Letter of Intent for the combination of Arcelor's laser welded tailored blank business with Noble. Upon completion of the transaction, Arcelor Mittal would receive approximately $300 million in a combination of cash and 9,375,000 shares of Noble common stock, and would become Noble's largest stockholder, owning approximately 40% of the issued and outstanding common shares. Closing of the transaction is expected in March 2007, following satisfactory completion of due diligence by both parties, Noble's financing, and receipt of all required authorizations, including approval by Noble's stockholders and antitrust clearance.
Arcelors TBA is a leading European manufacturer of tailored blanks. Its business includes nine plants in Europe, one in the US and a 25% joint venture in China.
Noble is North America's largest laser welder with laser welded flat blanks and laser welded tubular products solutions for the automotive industry. The company operates 12 production facilities in the United States, Canada, Mexico and Australia. On October 12th 2006, Noble acquired Pullman Industries Inc, a leading manufacturer of tubular and shaped structures using roll forming and other processes, primarily for the automotive industry.
Mr Michel Wurth member of the Arcelor Mittal management board said: "This move further strengthens our position with the global automotive industry. Noble will leverage TBA's strong position in the European market and offer additional benefits for our global automotive customers. We look forward to working with them as privileged partner"
Baosteels Q3 profit up by 42% YoY
China's biggest steel maker Baosteel has reported a 42% jump in July to September quarter earnings. Baoshan Iron and Steel Co. Ltd. posted net profit of 4.71 billion yuan ($597 million) for Q3 of 2006 up from 3.31 billion in Q3 of 2005. Its turnover also climbed by 22% to 42.10 billion yuan.
The company said in a statement that the expansion of high end production lines, such as stainless steel facilities, had started to increase top quality output.
Baosteel raised its domestic steel prices over 6% for the third quarter, though it subsequently cut key steel product prices for delivery in the fourth quarter by more than 4%.
Industry experts said that the result suggests that Baosteel's new facilities are operating well and also booming exports helped third quarter earnings.
Hyundai Steel breaks ground for 12 million tonne steel plant
Hyundai Steel Co announced that it has started construction on an integrated steel mill with an annual production capacity of 7 million tonnes at Dangjin southwest of Seoul. It plans to invest 5.24 trillion won for the plant, which will be completed by 2011.
The project has been driven largely due to ensure stable supply of steel sheets for the group's two carmakers - Hyundai Motor and Kia Motors. The new steel plant will produce 5.5 million tonnes of hot rolled steel sheet and 1.5 million tonnes of steel plate for shipbuilding.
Hyundai Steel also plans to invest additional 2.3 trillion won to expand the production capacity of the new facilities to 12 million tonnes by 2015.
Hyundai Steel Co, formerly known as INI Steel, is a unit of Hyundai Motor Group and currently has annual production capacity of 10.5 million tonnes. Hyundai Steel is the world's third largest mill that uses scrap metal to make steel in electric arc furnaces so far. It took over Hanbo Iron & Steel Co in 2004.After completion of this mill Hyundai will have a total capacity of 22.5 million tonnes.
Tontline lends support to Esmark for Wheeling-Pitt
It is reported that Tontine Management LLC, the 3rd largest shareholder of Wheeling Pittsburgh Corp, has lent support to Esmark Inc for electing a new board of directors which aims to pull off a hostile takeover of Wheeling Pittsburgh by Esmark.
Mr Jeffrey L Gendell MD of Tontine Management LLC, which along with affiliates control 9.5% of Wheeling-Pitt's stock, sent a letter to Wheeling Pitt saying that The latest offer from Esmark promises the most attractive long term economic value for current shareholders. Absent any changes in the facts or dynamics of the process or the current proposals, Tontine has concluded it will support the Esmark slate of directors at the company's annual meeting November 17th 2006.
Mr Gendell's recent declaration is a clear blow to Wheeling-Pitt's plan to merge with Brazil's Companhia Siderurgica Nacional SA, a deal already vigorously opposed by the United Steelworkers, which also prefers Esmark.
Mr Gendell earlier this month had told Wheeling-Pitt it should abandon the plan to merge with CSN, remain an independent producer and replace its senior managers. Tontine said neither offer for the struggling steelmaker provided sufficient value to shareholders. But it seems Mr Gendell has since been persuaded that there are significant challenges in remaining independent, so a strategic partner may benefit the company's long-term health.
US Steel may sell tubular steel business-Report
Reuters has citing sources familiar with the situation reported that United States Steel Corp is exploring the sale of its tubular steel business.
US Steels tubular steel business had 2005 sales of about $1.5 billion, as compared with company sales of more than $14 billion. The division's operating income of $528 million in 2005 accounted for just under one third of the company's income from operations in 2005.
Pittsburgh based US Steel is one of the U.S.'s major steel companies, with market capitalization of more than $8.5 billion. It also sells flat rolled steel products and has a European division that includes mines and steel mills in Central and Eastern Europe.
Ningbo Baoxin starts construction of SS tube mill
Ningbo Baoxin Stainless Steel has started its new stainless steel welded pipe plant construction. Invested by RMB 218 million ($27.5 million), this phase of the project will contribute 50,000 tons of stainless strip steel and 10,000 tons of auto vent pipe every year after its operation in end 2007.
Next phase will enjoy another investment of RMB 250 million and can raise annual stainless strip steel capacity by 50,000 tons and industrial pipe capacity by 20,000 tons.
Currently Ningbo Baoxin Stainless can produce 600,000 tons of CR stainless steel every year.
(Sourced from Mysteel.net)
BHPB appoints Mr Jimmy Wilson as president of SS Materials
BHP Billiton announced the appointment of Mr Jimmy Wilson as President of its Stainless Steel Materials Customer Sector Group. Mr Wilson will replace Mr. Chris Pointon, who has announced his retirement from the company. The changes will be effective 1 January 2007.
In this role Mr. Wilson will have responsibility for all aspects of BHP Billiton's Stainless Steel Materials businesses, including strategy, operations and delivering growth within BHPBs strategic framework.
Mr Wilson has extensive experience in the metals and mining industry and prior to this appointment was President and COO of Nickel West.
Mr Marius Kloppers group President of Non-Ferrous Materials for BHP Billiton said "Chris Pointon has done an outstanding job building our nickel business over the past nine years. The highlight was last year's completion of the acquisition of WMC and the successful integration of their nickel business into BHP Billiton. With Chris' retirement, the promotion of Jimmy represents the appointment of the next tier of our Stainless Steel Materials management team and indicates the depth of management talent within BHP Billiton."
MAN AG to transfer MAN Ferrostall to a new company
German engineering group and truck maker MAN AG announced plans to restructure the steel business of its international sales and service division MAN Ferrostaal.
MAN said in a statement "The company intends to transfer the trade and logistics of steel products to a partnership with another company. MAN Ferrostaal intends to hold a minority interest in the joint venture, however it is conceivable to dispose the minority interest in the future."
The statement did not say whom it may be considering as a probable partner.
The steel business of MAN Ferrostaal has some 200 employees worldwide
Enventure Global acquires Triad Pipe & Steel Co
Enventure Global Technology has acquired Houston based Triad Pipe & Steel Company, a leading supplier of OCTG to the oil and gas industry, the companies announced today. Terms of the sale were not disclosed. Stoneworth Financial provided advice to Enventure on this transaction.
Mr Robert Hinkel president and CEO of Enventure said Triad took the conventional business of supplying oilfield tubulars and created a unique value proposition for its customers by offering outsourced supply chain services. This type of innovative thinking is how Enventure has advanced expandable tubular technology. Both companies' cultures and product offerings complement each other, making this a great fit for our growth strategy.
Mr Gene Jorgensen, Triads president, said the acquisition will be mutually beneficial, while further enabling oil and gas companies to capture the most value out of their drilling and work over operations. He said Triad can now accelerate its growth beyond the Gulf of Mexico where weve been very successful. With access to Enventures established domestic and international markets we will be better positioned to deliver more solutions to the customer. Additionally, long time Triad customers will benefit from the financial, technical and operating resources Enventure adds to the dedicated service Triad provides.
Houston based Enventure Global Technology LLC, is a leading provider of solid expandable tubular (SET) solutions for the energy industry and is owned by Shell Technology Ventures and Halliburton Energy Services. Organized in 1998, the company has a global presence with operations in North America, the Middle East, Asia Pacific, South America, Europe and the Far East.
Hyundai Steel secure iron ore and coking coal for its expansion
Hyundai Steel Co signed an agreement to buy iron ore and coal from Cia Vale do Rio Doce, Rio Tinto Group and Elk valley as it began construction for a $5.5 billion expansion.
Hyundai may buy as much as 5 million tonnes of iron ore a year from both CVRD and Rio Tinto for 10 years from 2010. It will also buy as much as 1.5 million tons of coking coal from Canada's Elk Valley Coal Corp and the same amount of coal from Rio.
Hyundai Steel had earlier agreed in January to buy as much as 5 million tonnes of iron ore a year from BHP Billiton Ltd for ten years starting 2010. It also agreed to buy as much as 3 million tons of coking coal a year from BHP during the same period.
Chinese steelmakers call for cooperation in iron ore negotiations
It is reported that leading Chinese steelmakers are likely to cooperate with each other during next annual iron ore import contract price negotiations in order to create a stronger bargaining position and win lower raw material costs for the country's mills.
Mr Sun Wendong president of Wugang Group International Economic & Trading Corp, the procurement arm of Wuhan Iron, while speaking at iron ore meet at Qingdao, said In negotiating iron ore prices, strategic alliances should be forged with Baosteel, Ansteel and other domestic producers so that Chinese steelmakers will have more say in discussions on iron ore supplies. Cooperation rather than competition is the best way for China's steelmakers to realize their mutually held interest in winning more affordable iron ore prices.
Mr Sun said 'Wusteel will be working closely with other steel enterprises and international ore projects so that profits and benefits are shared but also risks are shared too.
Mr Sun also announced that the company would increase its crude steel capacity to 21 million tons by 2010 from 13 million currently and said its iron ore demand would more than double during the period to 35 million tons from 16.5 million in 2005.
Ugine Stainless & Alloys becomes UGITECH USA
Ugine Stainless & Alloys announced that it has become part of the newly formed company Schmolz + Bickenbach AG and will now operate as UGITECH USA, responsible for all sales and distribution of UGITECH division products in North America. The move is part of a global expansion made this year by Schmolz + Bickenbach.
Mr Mike Walsh executive VP of UGITECH USA said "This is a tremendous step forward in our evolution and should reassure our clients and suppliers that we are committed to maintaining the strength of our core business and expanding into new product areas. Now the company is positioned to expand on other product and market opportunities, leveraging the vast sourcing possibilities that exist among affiliated Schmolz + Bickenbach AG companies. For our industry affiliates and customers, this means we can expand our level of participation and reach throughout North America, access new capital, and become a predominant supplier of top quality specialty steel products."
UGITECH is a company within Schmolz + Bickenbach stainless steel activity that is specialized in stainless steel and nickel alloy long products like semis, bars, wire rod and drawn wires for process, automotive, construction and food processing industries. UGITECH is headquartered at Ugine in Savoie of France and globally employs more than 2000, mainly in France, Germany, Italy and USA. UGITECH USA Is a North American distribution arm of UGITECH.
Schmolz + Bickenbach Group is a fast growing producer, processor and distributor of specialty and stainless steels in long products Schmolz + Bickenbach has a global workforce of approximately 10,000 at more than 50 locations in Western and Eastern Europe, North America, South Africa, Australia and Asia. Schmolz + Bickenbach Group operate a large sales network present in more than 25 countries with annual sales of more than 4 billion euros. The company is headquartered at Dsseldorf in Germany.
Abengoa SA to acquire BUS Group AB from BUS Steel Services
FactSet Mergerstat has reported that Abengoa SA has signed an agreement to acquire BUS Group AB from BUS Steel Services GmbH for Euro 330 million.
BUS Group AB is based at Landeskrona in Sweden and provides recycling services for non ferrous metal containing production residues.
POSCO to put new roughing stand at its HSM
POSCO has signed a contract with a consortium consisting of Siemens and Hyundai Heavy Industries for a new roughing mill stand for the No 3 hot strip mill at its Gwangyang Works. The order value is approximately Euro 17 million. The new roughing mill stand is scheduled to start in October 2007.
The roughing mill project forms part of a larger modernization plan for the No 3 hot strip mill being implemented by POSCO. The main aim of the modernization is to increase output and roll grades up to API X80.
As part of this plan, Siemens VAI will be responsible for the total design, supply of key equipment, automation services and technical services for both the new No 2 roughing mill. The new roughing mill will have a maximum rolling force of 6000 tonnes and will be equipped with Hydraulic Automatic Gauge Control. HHI is responsible for mechanical equipment manufacture.
Outokumpu to reorganize tubular production in Sweden
Outokumpu announced that it will reorganize its stainless tubular unit OSTP's Nyby unit in Sweden to improve efficiency by bringing together the manufacture of similar types of products at one location.
OSTP's Nyby unit will install a second integrated production line for welded stainless process tubes, which will come on stream in the third quarter of 2008 and which will cost Euro 8 million. 2 heat exchange tube production lines at the Fagersta unit will also be transferred to Nyby during 2007 after the plant shuts down. A large diameter tube production line will be transferred from Nyby to Storfors during 2008.
Outokumpu in a statement said These actions will increase the annual production capacity of the Nyby unit by some 50% to 30,000 tonnes.
CVG owes $58 million to shareholding Sidor employees
BNamericas has reported that Venezuelan state heavy industry holding company CVG has acknowledged a $58 million debt owed since 2003 to Ternium Sidor employees who hold class B shares in the local steelmaker. In May 2005, CVG and Sidor shareholders reached agreements in which CVG acknowledged the rights of series B shareholders and ceded part of the steel makers dividends.
Mr Giovanni Barrios Sidor shareholders association representative told BNamericas "CVG is willing to acknowledge the sum of money that needs to be paid to the class B shareholders."
According to Mr Barrios the total payment due comes to 111 billion bolares, which based on the average US dollar exchange rate in the last 3 years is equivalent to $58 million. He said that the sum is to be split between 15,000 present and past workers who hold class B shares in Sidor according to the number of shares each one holds. Mr Barrios said "The how and when of the payment is still pending and we expect that to be decided this week.
CVG controls 40.2% of Sidor and 20% of that stake belongs to the employees. Sidor, based in the city of Puerto Ordaz in the Guayana region, is part of the Ternium steel group that also includes Argentine steelmaker Siderar and Mexico's Hylsamex. Sidor is Venezuela's largest steel producer with liquid steel output of 4.2 million tonnes in 2005.
