November, 19 2006
TATA group non committal on CSN offer
The Brazilian steelmaker CSN has offered a counter-bid for the Anglo-Dutch steel giant at 475 pence per share against 455 pence per share by Tata steel.
Tata steel's bid was approved by the Corus board on October 20, for $10.2 billion , including debt, which would make the Indian steel giant the world's fifth largest steelmaker.
Tata group chairman Ratan Tata would become the chairman of Corus group, whose board had approved the offer of 455 pence (Rs 161) per share in cash made by Tata steel.
The transaction is likely to be completed by middle of January next year after securing the approval of shareholders.
Tata steel would contribute 3.8 billion dollars to its UK arm for funding the takeover. The remaining would be financed through debt from ABN Amro bank, deutsche bank and credit issue without disturbing the ongoing expansion projects either in India or overseas.
The acquisition, would enhance Tata steel's capacity to 23.5 million tonnes per year from the present five million tonnes. The capacity would further increase to 40 million tonnes by 2011-12 with $32 billion revenues.
Usha Martin, Gustav Wolf to Make Tyre Bead
Usha Martin India and Gustav Wolf of Germany, who have jointly set up a 2,400 tonnes per annum (tpa) capacity steel cord manufacturing facility at Ranchi, decided to diversify into the manufacture of tyre bead wire. A 30,000 tpa capacity tyre bead manufacturing facility will be set up at Ranchi in two phases at an estimated investment of 400 million rupees (4.667 million).
The proposed 30,000 tpa tyre bead manufacturing facility will be set up with Gustav Wolf's product know-how and process technology.
L&Ts Chinese subsidiary opens switchgear unit in Wuxi
Indian engineering major Larsen & Toubros wholly owned Chinese subsidiary Larsen & Toubro (Wuxi) Electric Company Ltd has recently inaugurated it new switchgear factory at Wuxi in the Jiangsu province of China.
LTW will manufacture and market its indigenously developed, high end air circuit breakers and moulded case circuit breakers. Products manufactured at LTW are being certified by China Quality Certification Center for the China Compulsory Certification mark.
SCI to signed largest shipbuilding contract with Korean
Shipping Corporation of India is planning to place a new contract with Korean shipbuilding yards for 2 container vessels within two weeks for delivery by the end of 2008.
Mr Umesh Grover director of SCI said Shipping Corporation is likely to place orders with Korean shipbuilding yard Hyundai Heavy Industries for two container vessels of about 4,300 twenty foot equivalent units capacity each at a price of $65.95 million per vessel. The Cabinet Committee on Economic Affairs has already given its approval for the acquisition of these vessels.
SCI has recently signed contracts with South Korean yard STX Shipbuilding Co for building 6 new Long Range-I size product tankers with a design deadweight of about 60,000 tonne at the design draft of 12.50 meter for $371 million and expects their delivery in the first half of 2010.
The SCIs present fleet comprises of 80 vessels of 2.75 million gross tonne capacity including cellular container vessels, crude oil tankers, product tankers, bulk carriers, LPG/Ammonia carriers, acid carriers, passenger vessels and offshore supply vessels.
Mazda to supply steam injectors to Inertia Iron & Steel
Mazda informed that its ahs bagged order for Rs. 5.9 million from Inertia Iron & Steel for steam jet booster injector vacuum system for vacuum degassing of steel and now has orders amounting to about Rs. 17.00 million for this product from various companies.
As per the release Mazda, one of the few manufactures of this specialty product in India, expects good growth in this line of product. It adds that this is an indigenously developed technology for vacuum degassing of steel developed by the in house research and development of the company.
Mining would not affect environment
Answering a question Steel and Mines Minister Mr. Padmanabh Behera told the Assembly. The State has a total iron ore deposit of 5,372 million tonnes, and 14 companies had signed memoranda of understanding (MoUs) with the State Government for establishment of steel plants would be 288 million tonnes for 25 years.
The Minister claimed that large-scale mining would not cause any adverse impact on the environment if it were carried out with the latest technology as per the mining plan approved by the Indian Bureau of Mines.
He said the State Government was committed to strict implementation of the stipulation on environmental conservation suggested by the Ministry of Environment and Forest.
The Minister also said 14 of the total 41 companies, which signed MoUs with the State Government, had so far invested 25% of their total investment proposals.
Action on Bhusan man demanded
After the firing incident people of five Villagers continue to be on the warpath against the Bhusan steel authorities here and have demanded stern action against its vice-president Mr Paras Singh, who, according to the police, has been absconding ever since the firing incident.
The agitated villagers had indulged in road blockade and rallies among others demanding action against Mr Singh. They have also raised slogans against the Balimi police for its alleged inaction. A scuffle occurred on 7 November when security guards of the company opened fire on the villagers. Villagers said they would not allow the second phase of work of the plant to progress until and unless their demands, which include action against Mr Singh and rehabilitation and peripheral development.
Wheeling-Pittsburgh chooses Esmark
Wheeling-Pittsburgh Corporation shareholders opposed its board of directors rejecting a proposed deal with a Brazilian steelmaker CSN and supporting the hostile takeover by Illinois steel distributor Esmark Inc.
Mr James Bouchard, Esmark CEO, said that he is ready to move into the company's Wheeling headquarters within weeks, and is eager to rebuild the twice-bankrupt company with the help of the United Steelworkers.
Shareholders had a choice of supporting the incumbent board, which favored CSN or Esmark.
Gerdau, Santander and Spanish executives assume control of Sidenor
The Gerdau Group, Santander and the Spanish executives communicate the acquisition of Corporación Sidenor S.A., the largest Spanish producer of specialty steel and forged and cast products, for the total amount of 443.8 million euros, as well as an additional variable sum estimated at 19.5 million euros is to be paid by the Gerdau Group. The company is also positioned as one of the country's most important manufacturers of drop forged products.
The stake in Sidenor capital stock will be divided as follows: 40% will belong to the Gerdau Group, 40% to Santander and 20% to the group of Sidenor executives; each one will pay the amount corresponding to the stake acquired. The purchase and sale contract will be submitted to the competent regulatory authorities.
Sidenor employs 5,300 people, 2,300 of this total in Spain and 3,000 in Brazil. In 2004, the company's consolidated net revenue totaled 1.1 billion euros, and its net profit, 74 million euros.
Company informs that this new stake represents an important investment in the industry segment, in which the Gerdau Group has consolidated experience, allowing for its entry into the strategic European Union market. It allows the company to open an important channel to major international automobile manufactures while giving it access to the production, administrative and industrial management know how of one of the world's largest suppliers from this sector, all in line with its long-term growth and globalization strategy.
Ukraine's steel production up by 7% in first 10 months of 2006
CVRD announces the pricing of a $ 3.75 billion offering of 10-year and 30-year notes by its wholly-owned subsidiary Vale Overseas Limited.
The $ 1.25 billion Guaranteed Notes due 2017 will bear a coupon of 6.25% per year, payable semi-annually, at a price of 99.267% of the principal amount. These notes will mature in January 2017 and were priced with a yield to maturity of 6.346% per year, resulting in a spread of 168 basis points over the US Treasures.
The $ 2.50 billion Guaranteed Notes due 2036 will bear a coupon of 6.875% per year, payable semi-annually, at a price of 98.478% of the principal amount. These notes will mature in November 2036 and were priced with a yield to maturity of 6.997% per year, resulting in a spread of 225 basis points over the US Treasures.
CVRD will use the net proceeds of the offering to repay a portion of the amounts outstanding under its two-year senior acquisition facility used to finance its recent acquisition of Inco Limited.
U.S. Steel stock bullish on report of Russian takeover bid
U.S. Steel Corp. surged by more than 9% on Friday after a Russian newspaper reported that OAO Severstal, with the help of other Russian iron ore companies, was considering a bid for the Pittsburgh-based steelmaker.
U.S. Steel shares rose by 9.3%, to close at $70.57 on the NYSE.
Iron ore export to China will increase
China's increased steel production has created a surge in iron ore demand. In recent past Indian iron ore prices increased which is less than the price increase of Brazilian iron ore because of rising freight charges.
The Indian iron ore is in demand for its low prices compared to Brazilian ore. However, rising demand of iron ore from domestic market may lower the iron ore exports from India.
Russian PM feels need of modernization in metallurgical industry
Russian Prime Minister Mr Mikhail Fradkov in a Russian government meeting said that the metallurgical industry need modernization. Metallurgy plays a major role in the development of processing industries and important for Russian economic diversification policy.
He also said that certain measures should be undertaken to develop this industry in general and to improve the product quality in particular.
Mr Fradkov also emphasized the need to manufacture metallurgical equipment locally. Currently Russia has to import it.
He told that Russia holds the first place in nickel production and second place in aluminum production, Russian producers meet only 4 and 19 percent of the domestic demand for these products respectively.
US's three largest automakers met with President George Bush
Last Tuesday George Bush met with the heads of the country's three largest automakers. In this meeting Mr Richard Wagoner, Jr. of General Motors, Mr Alan Mulally of Ford Motor, and Mr Tom LaSorda of the US division of DaimlerChrysler complained about foreign competition and requests for lower tariffs on imported steel. The president promised that he will bring up the topic of the necessity of fairness in relation to American exporters at the APEC summit in Hanoi.
American automakers are facing fierce competition from foreign firms, particularly from South Korea and Japan.
CVRD prices $ 3.75 billion notes due 2017 and 2036
CVRD announces the pricing of a $ 3.75 billion offering of 10-year and 30-year notes by its wholly-owned subsidiary Vale Overseas Limited.
The $ 1.25 billion Guaranteed Notes due 2017 will bear a coupon of 6.25% per year, payable semi-annually, at a price of 99.267% of the principal amount. These notes will mature in January 2017 and were priced with a yield to maturity of 6.346% per year, resulting in a spread of 168 basis points over the US Treasures.
The $ 2.50 billion Guaranteed Notes due 2036 will bear a coupon of 6.875% per year, payable semi-annually, at a price of 98.478% of the principal amount. These notes will mature in November 2036 and were priced with a yield to maturity of 6.997% per year, resulting in a spread of 225 basis points over the US Treasures.
CVRD will use the net proceeds of the offering to repay a portion of the amounts outstanding under its two-year senior acquisition facility used to finance its recent acquisition of Inco Limited.
