March, 29 2007
TATA Corus deal gets approval of the UK court
TATA Steel announced that at a hearing held on March 27th 2007, the High Court of Justice in England and Wales passed an order sanctioning the Scheme of Arrangement relating to the recommended offer for acquisition of Corus Group Plc, by TATA Steel through its wholly owned indirect subsidiary, TATA Steel UK Ltd, at a price of 608 pence per ordinary share in cash.
This follows approval of the Scheme, by the requisite majorities of Corus shareholders, at the Court Meeting and the Extraordinary General Meeting, which were held on March 7th 2007.
CORUS said that trading in its shares at LSE and Amsterdam stock exchange and in American depositary shares at New York stock exchange was expected to be suspended March 29th while another court hearing was scheduled for March 30th to confirm the reduction in the companys equity capital.
TATA Steel had said that it plans to despatch the consideration pursuant to the scheme as soon as possible on or after April 2nd. The Indian firm is required to despatch the consideration not more than 14 days after the effective date of the transaction.
GPT produces widest tinplate in Indian history
GPT Steel Industries Ltd, in its 650,000 tonnes per annum Cold Rolling and Tinplate facility at Gandhidham in India, has produced 1015 mm wide tinplate.
As per reports, GPT Steels 1016 mm Tinning line is the widest tinning line in the India and this is the widest tinplate ever rolled in India in its history. Before this GPT had produced 990 mm wide tinplate last week which was also the widest ever tinplate produced in the country till then.
GPT had also achieved tinplate production of 288 tonnes per shift on March 15th 2007, thereby achieving an equivalent of 260,000 tonnes per annum capacity as compared to its rated capacity of 180,000 tonnes per annum.
GPT Steel Industries is a part of GPT Group having interests in steel plants, steel pipes, service centers and power plants. GPT Group also has a 60,000 tonnes spiral pipe plant near Vadodara in the state of Gujarat.
PFC extends bid deadline for Tilaiya ultra mega power plant
It is reported that Power Finance Corporation has deferred the deadline for submitting requests for qualification for the 4,000MW Tilaya ultra mega power project located at Tilaiya village in Hazaribagh district of Jharkhand to April 10th 2007 from March 20th 2007. PFC now proposes to shortlist bidders and issue letters of intent before July 16th 2007 and subsequently signs agreements before September 17th 2007.
According to the original plan, PFC had asked bidders to submit requests for qualification by March 20th 2007, while their short listing based on responses to requests for qualification and issuance of request for proposal, were to have taken place on April 2nd 2007.
PFC has formed a 100 per cent subsidiary, Jharkhand Integrated Power Ltd, which will take up pre project work before handling over the project to the successful developer. The development of the Tilaya project includes establishment, operation and maintenance of a 4,000 MW coal fired pit head power project. This will include mine development and transportation of coal from the proposed allocated captive coal mines at North Karanpura 70 kilometer from the project site.
JSL orders Andritz for shapemeter rolls
It is reported that Andritz technology groups member Andritz Sundwig, based at Hemer in Germany, has received an order from Jindal Stainless Ltd for supply of five shape meter rolls with tungsten carbide coated surface for use in 20 high rolling mills in the production of stainless steel strip at strip temperatures above 200C.
Andritz Sundwig new shapemeter roll type A are having completely closed, gap free and homogeneous surface. The benefits derived from this design include prevention of damage to the strip surface, optional coating with wear resistant materials like tungsten carbide; ease of installation of the force sensors in axial drill holes and no calibration of the shapemeter roll on site.
At the strip edges, the shapemeter rolls are designed with sensor distances of only 25 mm, thus optimally determining high gradients of strip shape. The maintenance free roll electronics with digital optical rotation transmitter ensure highest precision and operational safety. The model predictive control system is used for strip shape control as it can predict the future control behavior of the process via an integrated model and clearly improves control quality compared to a conventional PID controller. The shape actuators are pilot controlled for improvement of the control result, especially at the strip head and the strip end.
Andritz Sundwig will also supply two shape control systems with two shapemeter rolls each for the 6 high mill stands of Bhushan Steel & Strips Ltd for the production of carbon steel strip.
Dubai Investments to set up steel fabrication unit in India
Gulf News reported that Dubai Investments unit Dubai Investments Industries through its subsidiary Emirates Building Systems in a JV with an Indian company will set up a 50,000 tonnes per annum steel fabrication yard in India for manufacturing steel structures.
Mr Shukri Salem Al Muhairi GM of DII without giving the project's value told Gulf News that "We are in final discussions with an Indian company to establish a steel fabrication facility. Our assessment is that India has great growth potential so we want to position ourselves in that market.
It is also reported that Emirates Building Systems is also expanding capacity at its Dubai fabrication yard from 45,000 tonnes per year to 80,000 tonnes per year. Mr Al Muhairi said "We are in the process of finishing the expansion that will make it the largest such facility in the UAE.
MMTC sets targets for 2007-08
MMTC Limited has signed a MoU with commerce ministry for 2007-08. Mr Sanjiv Batra CMD of MMTC and Mr Gopal Pillai commerce secretary signed the MoU in New Delhi.
Under the MoU, MMTC Ltd has projected a turnover of INR 18,100 crore and gross margin of INR 200 crore for the next fiscal. MoU also envisages a sales turnover target of USD 400 million for MMTC's Singapore subsidiary MTPL. MMTC has also indicated targets for different parameters pertaining to customer satisfaction, innovation and project implementation.
MoU also covers schedule for commissioning of 15 MW wind energy farm, entry into retail business, power trading and coal mining as well as setting up 21 new franchisees for its 92.5% sterling silverware products under the Sanchi brand.
Indian iron ore trader hope for a solution
Mr Amit Majumdar MD of Goa based iron ore trading firm Minmet Resources International on the sidelines of 5th International Market & Steel Trade conference at Guangzhou told Reuters that India has enough iron ore to continue exporting to China despite a rapid expansion plans for Indias own steel industry. He added that are no takers within India for low Fe content iron ore fines, which China has been buying.
Mr Majumdar added that The Goan economy, to a large extent, depends on exports of iron ore and tourism. So if there are heavy export duties, it could be badly affected. He was hopeful to find a solution to Indias export tax on the mineral that has caused turmoil in iron ore trade between Indian and China.
Mr JK Tandon takes over as chairman of Southern Iron & Steel
Southern Iron & Steel Company Ltd has announced the following changes in its board of directors.
1. Mr NK Jain chairman has resigned from the board and committee of directors with effect from March 27th 2007. The same has been accepted by the board of directors in their meeting held on March 27th 2007.
2. The board of directors has appointed Mr JK Tandon as additional director under section 260 of the Companies Act 1956 and he will hold the office of the directors till the conclusion of next annual general meeting. The board of director has also elected Mr JK Tandon as chairman of the company.
Arcelor Mittal identify land for proposed plant in Orissa
BL reported that Arcelor Mittal has identified 6,000 acres of land along with water sources in Keonjhar district in Orissa for its 12 million tonnes proposed plant planned to be set up at an investment of INR 40,000 crore.
Mr LN Gupta secretary steel and mines government of Orissa said that The process of setting up the plant is on the track and we have constituted a joint working group for speedy progress of the proposed plant.
Mr Gupta added that As per the state mining policy, the company needs to fulfill certain conditions on investment front before the mines are being allotted. When we have signed the MoU we will ensure the supply of raw material.
MSP Steel & Power registers with UNFCCC under CDM project
MSP Steel & Power Ltd has announced that its waste heat recovery based captive power plant has been registered with UNFCCC under CDM Project.
It will involve reduction of 59,000 metric tonnes of CO2 equivalent per annum which will lead to a substantial revenue inflow by selling CER credits accrued over a period of 10 Years.
The captive power plant is based on waste heat recovery module whereby flue gas released by the sponge iron kiln is used to generate steam in the boiler for generating power.
China's steel products prices expected to move down in second half
Chinas steel industry insiders during the Steel Market and Trade conference at Guangzhou forecast that steel product prices on the Chinese market may fall in the second half of 2007 as overcapacity and trade disputes will force steel product prices down in domestic market.
Mr Jia Liangqun DGM of Mysteel said that "Supply and demand in the domestic market maintained a subtle balance in 2006. We can expect a price decline in China if exports are limited and supply far exceeds domestic demand which is too high to speed up any further.
Mr Peter Marcus managing partner of World Steel Dynamics also warned that shortages of steel products on the international market were likely to come to an end in the second half of this year.
According to official data China crude steel output surged by 18% annually to 419 million tons in 2006 and was expected to reach 475 million tons or even higher in 2007. Whereas the apparent consumption of crude steel in 2006 amounted to 384.05 million tons in 2006, in this domestically made steel products accounted for record 95.82%. In addition, China exported more than 43 million tons of steel products in 2006 increase of 109.58% YoY making it one of the world's major exporters.
Vallourec & Sumitomo to set up seamless tube mill in Brazil
It is reported that Sumitomo Metal Industries Ltd and Vallourec have decided to form a JV in Brazil to produce high grade seamless pipes at an investment of JPY 200 billion. It is scheduled for a starts up in 2010.
The JV will build an integrated steel plant, including blast furnace and seamless pipe milling facilities at Minas Gerais. It will have a capacity 1 million tons of crude steel annually and 600,000 tons of seamless pipes a year. Sumitomo Metal and Vallourec would each be selling 300,000 tons of seamless tubes.
Sumitomo Metal and Vallourec chose Brazil as the location for the new joint venture because the country has good access to growing markets, including North America, the Middle East and Africa, and because raw material and energy costs are low in Brazil. Sumitomo Metal said "Backed by strong world energy demand, the market for seamless pipes used for oil and natural gas development has been growing in recent years. In particular, the market for high grade seamless pipes, which are durable even in severe drilling environments, is expected to expand at a remarkable pace."
Gerdau to buy Mexican Siderurgica Tultitlan
Brazilian steelmaker Gerdau announced that it has agreed to buy Mexican Siderurgica Tultitlan for USD 259 million, thus marking its first foray into Mexico. The deal which must be approved by Mexican regulatory authorities is the latest in a string of acquisitions in recent years by Gerdau.
Siderurgica Tultitlan, based in Mexico City, has the capacity to produce 350,000 tonnes of steel and 330,000 tonnes of rolled steel. Most its production serves customers in Mexico. Once its expansion plans are completed, the mill will have the capacity to produce 500,000 tonnes of steel and 430,000 tonnes of rolled steel.
Mr Andre Gerdau Johannpeter CEO of Gerdau said that "The acquisition represents one more step in our strategy to grow with profitability and expand its operations in the Americas besides Brazil.
Gerdau, Latin America's biggest producer of long products, has been aggressively seeking to expand outside Brazil. Gerdau also has operations in Canada the United States, Spain, Colombia, Peru, Chile, Argentina and Uruguay.
Mexico is the 2nd largest steel producer in Latin Americas after Brazil.
CISA confident of restraining Chinese steel exports in 2007
China Iron & Steel Association said that China is looking to solve any conflicts caused by high export volumes through bilateral dialogue and consultation and that if a consensus is reached in this way, then the Chinese steel mills will be expected to make a voluntary export reduction that would be through industry co ordination and discipline.
Mr Luo Bingsheng CISA executive vice chairman and secretary general of CISA on the sidle lines of an international steel markets conference in Guangzhou said that the voluntary restraint approach would follow a meeting of producers, which would set rules and regulations. He said "These would then discipline the whole industry." But, he also noted that such decisions would be executed by all enterprises on a voluntary basis that would be reflected in the rules and regulations of the enterprises themselves.
Mr Luo also noted that a lower tax rebate and new export duties on steel exports will be cumulatively felt in 2007 and that if these fail to curb shipments, then new restrictive measures will be issued until the rapid growth of exports has been controlled.
Mr Luo said that China's exports will probably maintain the level of 2006, or decline in which the country exported around 43 million tons of finished products and 9 million tons of semis.
Sumitomo to take 49% stake in Chinese VAM Changzhou
Sumitomo have expressed their common intent to reach an agreement to take a 49% stake jointly in an overseas holding company controlling China based VAM Changzhou. Sumitomo Metal and Sumitomo Corp will take 34% and 15% stake respectively in Vallourecs VAM (Changzhou) Oil and Gas Premium Equipments Co in Jiangsu Province and the remaining 51% will be held by the French company Vallourec. They anticipate finalizing a plan for the proposed investment in the near future.
The creation of VAM Changzhou which is specialized in the threading of seamless steel tubing and casing for Oil and Gas OCTG products was announced in September 2006 and is expected to deliver its first connections by mid-2007 and threading capacity will reach 50,000 tonnes per year. It will be dedicated to the threading of premium connections.
Vallourec and Sumitomo Metals have been collaborating for over 30 years in the field of VAM premium connections for Oil & Gas applications. Whilst Sumitomo Metals has been operating a license to produce VAM connections since 1976, cooperation between the two companies was extended in 1984 to include an R&D agreement.
Sumitomo Metal Industries Ltd supplies wide variety of high quality steel products including sheets and plates, pipes and tubes, and components for trains. In pipes and tubes, its technology ranks as one the best in the world.
Vallourec is a world leader in the production of seamless steel tubes and tubular products for specific industrial applications like oil and gas, power generation, petrochemicals, automotive and mechanical engineering industries.
SA competition tribunal finds Mittal Steel SA guilty of abusing monopoly
South African media has reported that South African competition tribunal, for the first time on allegations of excessive pricing, has found Mittal Steel South Africa guilty of abusing its monopoly position to charge excessive flat steel prices to the detriment of consumers contravening Section 8 (a) of the Competition Act. This landmark judgment has sparked talk that other industries dominated by a single company could be next in the firing line. In addition the ruling may opens the door to civil claims by the steel maker's clients.
On the charge of excessive pricing, the tribunal said Mittal Steel SA had used its status as a super dominant firm or monopoly to achieve its domestic target price by ensuring that excess steel supply was removed from the local market. The ruling found Mittal Steel SA guilty of the most fundamental and egregious monopolistic conduct of withholding supply from the domestic market by maintaining the segmentation of its markets. This purposefully prevented arbitrage, or trading to take advantage of differences between the higher prices on the domestic market than international markets. The tribunal said that even though it had established that Mittal Steel SA charged excessive prices, it had not done so by assuming the mantle of a price regulator.
However, the tribunal dismissed secondary complaint that Mittal Steel SA induced customers not to deal with its competitors. It said "We would want to proceed with particular care on an inducement allegation. After all, on the face of it, the practice of competition consists precisely in inducement."
The ruling also questioned the second respondent in the case, Macsteel International, in which Mittal Steel SA is a 50% JV partner and through which Mittal Steel SA markets its international output. The tribunal found that the arrangement with Macsteel International was the essential ancillary conduct through which Mittal Steel SA abused its structural advantage to maintain its pre selected price level.
The tribunal has rejected Mittal Steel's claim over the past year or so that it has moved away from using import parity as a basis to set prices. Mittal Steel claims to now use a basket of domestic prices in a number of comparable countries.
The tribunal postponed a decision on penalties for the company's contravention. It said it needed to hear further evidence in connection with the extent, if any, of the administrative penalty to be imposed. It said "Although the record is complete in regard to the remaining remedies, we consider it undesirable to consider remedies in a piecemeal fashion." The maximum fine that could be imposed is 10% of Mittal's 2003 domestic sales of flat steel products or about ZAR 800 million.
Mr Bernard Swanepoel CEO of Harmony Gold, said "This is too big a victory for the small man on the street. It's definitely a big moment.
Mittal Steel SA issued a muted statement expressing disappointment at the ruling, however, it welcomed the dismissal of the complaint that it induced its customers not to deal with a competitor. Mr Rick Reato CEO of Mittal Steel SA said that the company's legal team would study the reasons for the judgment once it has received a copy from the tribunal. He said "We currently are unable to comment further on the ruling until we have seen the reasons for the judgment. We believe however, that we have a strong legal case and will be considering our legal options.
China waives import license for various steel products
It is reported that China has removed its import license requirement for a total of 338 categories of materials and products effective April 1st 2007. Chinas ministry of commerce said that from April 1st 2007, Chinese firms will no longer need to apply for an import license to import these products.
The exempted products include a wide range of steel products such as various coils, sheets, rods, bars, and wires.
It means that Chinese traders do not need to get official approval but their imports will have to be recorded at the ministry.
China Daily reported that the relaxation of import licensing marks the latest attempt by the ministry to help rebalance the country's imports and exports. Trade department official said to prevent the trade surplus from widening, that the government has taken a series of measures to encourage imports and restructure exports in 2006, where China began to scrap or lower the export tax rebate rates on some energy intensive and polluting products.
CSC to build a new CR mill and upgrade BF No 1
Taiwan's China Steel Corporation recently announced that its board has decided to invest TWD 46.44 billion (USD 1.41 billion) to build a new cold roll steel line and that 77.28% of the required investments will be sourced from the company's own funds while the remainder will come from long term bank loans.
China Steel said in a statement that the new line would have an annual capacity of 1.5 million tonnes and the new line. The investment is expected to be made between April 1st 2007 and July 15th 2011 but the company did not specify when the project would be completed.
CSCs board has also decided to invest TWD 6.49 billion to revamp the third campaign at the No 1 blast furnace in the period from April 1st 2007 to June 30th 2011 out of which some 22.72% of the required investment for the revamp will come from bank loans while the remainder will come from its own funds. The board did not specify when this project would be completed either however, the third campaign is to increase the supply of hot metal of the No.1 blast furnace to 2.33 million tonnes from 1.97 million tonnes.
Brazilian Court rules against CVRD in CSN's Casa de Pedra mine rights case
Agencia Estado news service reported that Brazilian federal court has turned down an appeal by Brazilian mining giant CVRD in an antitrust case involving rights to a mine owned by steel maker Companhia Siderurgica Nacional.
CVRD is seeking the rights to excess iron ore from CSN's Casa de Pedra mine in the southeastern state of Minas Gerais where CSN is expanding output at the mine and has plans for an initial public offering of a stake in the mine on the Sao Paulo Stock Exchange.
CVRD had gained the preferential right to iron ore from the mine as part of a divestment of shares the two companies held in each other and had said that it will not relinquish that right without compensation from CSN.
On August 10th 2005, Brazil's antitrust body Cade ruled that CVRD must either give up the right or sell its Ferteco mining unit, also in Minas Gerais. CVRD won an injunction in February 2006 that suspended those conditions, arguing that Cade's president illegally cast a double vote to break a tie among commissioners.
Mr Fabio Barbosa CFO of CVRD said that the company is likely to appeal against the court's decision.
Egypt government grants licenses for 2 DRI plants
Egyptian ministry of Trade and industry has reduced its strict measures on the establishment of new iron and steel factories to boost production capacity in the domestic market and crack down on rising prices.
Mr Rachid Mohamed Rachid minister of trade and industry, approved proposals for setting up two factories for directly reduced iron each with an annual capacity of 1.6 million tonne in Suez and the Sadat Industrial City.
The move comes despite the Egyptian government's decision in February that imposed strict measures on licensing plants for production of fertilizers, cement, steel and aluminum on claims that such industries consume large amount of energy at the expense of other job creating industries such as textiles.
Hot band prices continue to increase in last fortnight
The four benchmark prices reported by SteelBenchmarker for hot rolled band included in the March 26th 2007 are
1. US
USD 622 per metric ton FOB the mil
Up by USD 11 per ton from USD 611 two weeks ago
Down by USD 76 per ton from the peak of USD 698 on July 24th 2006
2. World Export Price
USD 596 per metric ton FOB the port of export
Up by USD 13 per ton from USD 583 two weeks ago
Down by USD 14 per ton from the peak of USD 610 on June 12th 2006
3. Western Europe
USD 674 per metric ton ex works
Up by USD 14 per ton from USD 660 two weeks ago
Up by USD 43 per ton the previous peak of USD 631 on July 24th 2006.
4. China
USD 432 per metric ton ex-works
Down by USD 8 per ton from USD 440 two weeks ago
Down by USD 32 per ton from the peak of USD 464 on June 12th 2006.
SteelBenchmarker publishes steel benchmark prices for hot rolled band, cold rolled coil, rebar, and standard plate in the US Western Europe, mainland China and the world export market twice each month.
Arcelor Mittal upbeat on China prospects Report
Arcelor Mittal is optimistic that Beijing would eventually give them the green light to take a majority stake in a Chinese steel mill.
Mr LN Mittal president & CEO of Arcelor Mittal in an interview with FT said that "We would like to be long term player in China and an actor in this consolidation in the Chinese steel industry. I am optimistic that eventually we will be permitted to play a part but getting government approval for consolidation is a prolonged process and you have to be patient. We have to be able to demonstrate that we can bring value to the Chinese producers."
China Business has reported on March 12th 2007 that Chinas National Development and Reform Commission have conditionally rejected the proposed purchase by Arcelor Mittal of Laiwu Steel Co Ltd by putting forward objections concerning price and technology transfer. NDRC believe Laiwu has been undervalued if Arcelor Mittal pays CNY 2 billion in exchange for 38% stake of Laiwu based on the previous share price.
Steel is considered a strategic sector in China, with foreign involvement subject to review over and above normal acquisitions. Most industry sources say that Arcelor Mittal now has less chance of securing the stake. This reflects the fears of the Chinese government and others of the mega sized steelmaker operating in China
BHPB & Rio reopen iron ore ports after cyclone Kara
It is reported that BHPs Port Hedland and Rio Tintos Dampier and Cape Lambert ports have reopened after Kara cyclone passed the Western Australian coast.
A BHP spokeswoman said that its iron ore port in Port Hedland was reopened at 8 AM WA time on Wednesday. She added that its mining operations in the nearby Pilbara region, which feed ore via rail to the port, had not been affected by the cyclone. The production at BHPs 10,600 barrel per day Griffin oilfield also resumed earlier on Wednesday.
Rio Tintos operations at Dampier and Cape Lambert ports had resumed.
The weather bureau said Cyclone Kara had weakened rapidly overnight and the bureau had downgraded it to a tropical storm from a category three cyclone.
Arcelor Mittal denies plan to bid for Vallourec at this time
Reuters reported that Mr LN Mittal president & CEO of Arcelor Mittal denied market talk that it was interested in bidding for French seamless steel tubes specialist Vallourec. The report cites Mr LN Mittal telling a news conference that We have no interest in Vallourec at this time.
A report that Mr LN Mittal had indicated during an investors' meeting in New York that he was interested in the French company, attributed to 5% increase in Vallourec shares on Wednesday. A UK based analysts said "What he said is that he was interested in building a global platform in seamless tubes, which can have triggered speculation on Vallourec.
MMX plans CorumbBF commissioning in May 2007
BNamericas reported that MMX plans to start operations of its first blast furnace of its pig iron project in Brazil's Mato Grosso do Sul state in May 2007 and the second blast furnace is scheduled to kick off production in September 2007.
MMX's which produce 400,000 tonne per year pig iron plant is part of the Corumba project which also includes a 4.9 million tonne per year iron ore mine and a 500,000 tonne per year billet unit.
As per earlier reports, MMX already secured a long term deal to sell the pig iron from Corumbto Cargill. A company spokes person told BNamericas that "Cargill will acquire 75% of production and is due to target sales within the North American market adding the bulk of the remaining production will likely be sold in Argentina and Paraguay while sales could also target Asia and Europe.
MMX is a subsidiary of Brazilian mining, metals and energy group EBX.
Shougang Jingtang orders coke ovens from Uhde
It is reported that worlds leading engineering company, Uhde has been awarded another EUR 40 million contract in China for the construction of 4 new coke oven batteries with a total capacity of 4.2 million tonnes of blast furnace coke for the Chinese steel producer Shougang Jingtang United Iron & Steel Company.
The 4 coke oven batteries comprising of 70 large capacity coke ovens with a chamber height of 7.6 meters, will produce some 12,000 tonnes of coke per day from around 15,000 tonnes of coking coal. The first coke oven battery will come on stream in late 2008.
Uhde's scope of services includes the entire basic engineering, supply of special equipment and supervision of the erection and commissioning activities, it will also carry out the detail engineering in conjunction with its Chinese partner ACRE Coking & Refractory Engineering Consulting Corporation.
Uhde would also engineer a coke oven gas desulphurization plant with an integrated sulphuric acid plant in order to meet Chinese environmental standards. It will use its proprietary VACASULF process for the coke oven gas desulphurization plant.
Izdemir 2006 net profit up by 340% YoY
Turkish steelmaker Izmir Demir Celik announced that its net profit in 2006 has increased by 340% YoY to TRY 56.057 million (EUR 30.3 million) as its revenue increased faster than costs. The company has also swung to an operating profit of TRY 82.1 million (EUR 44.34 million) from a loss of TRY 4.5 million (EUR 2.43 million) in 2005 while its gross profit climbed 16 fold to TRY 98 million.
Izdemirs total sales increased by 80% YoY reaching TRY 798.1 million (EUR 431.04 million) and costs expanded by 60% while sales on the domestic market rose by 124% to TRY 158.1 million (EUR 85.4 million) and sales abroad improved by 72.8%.
Izdemir is 76.41% owned by Sahin Koc Celik, a JV between Turkish Sahin Metalurji and industrial conglomerate Koc Group. Sahin-Koc Celik bought 54.68% in Izdemir from Is Bank for USD 79 million in October 2005. It later increased its holding in the steelmaker after buying out minority shareholders. Al Rajhi family owns 5.15% in the company and the remaining are traded on the Istanbul Stock Exchange.
Shougang to cut 21% of work force by 2010
China Daily reported that Shougang Corp has plans to cut its workforce by 21% by the end of this decade as it moves production out of Beijing.
Mr Zhu Jimin chairman of Shougang told China Daily that the company will reduce the number of its employees to 65,000 by 2010 from 82,500 in 2006 and in the meantime, the firm's workforce in the city its current home base will be axed to 30,000 from more than 50,000.
However, Shougang aims to double its workers' salaries by 2010 from 2005. Last year, its employees' average income stood at CNY 37,000 up by 8.4% from 2005.
Following a central government order, Shougang plans to halt all crude steel production in Beijing as part of efforts to ease pollution. Earlier this month, it started building a new 9.7 million tonnes plant in neighboring Hebei Province with Tangshan Iron & Steel Corpat an estimated cost of CNY 66.8 billion.
Hunan Valin Steel Tube & Wire to sell additional shares
Hunan Valin Steel Tube & Wire Co Ltd announced that its shareholders have approved the issuance of up to 520 million additional A shares at not less than CNY 4.47 per share to its parent Hunan Valin Group as well as to Arcelor Mittal.
Arcelor Mittal holds a 29.48% stake and Hunan Valin Group owns 30.29% stake in Hunan Valin Steel Tube & Wire Co Ltd of and will buy 49.33% and 50.67% of the new shares respectively.
Hunan Valin Steel Tube & Wire Co Ltd said the proceeds will be used to purchase shares in some companies owned by its parent as well as invest in iron and steel production facilities.
Coal freighter sinks near Chinese coast after collision
Xinhua has reported that 7 sailors were rescued on Monday evening just before Vietnamese freighter identified as QN4368 sank after a collision with another ship in the south of China on its way to harbor with 900 tonnes of coal.
The Qinzhou Maritime Safety Administration in Guangxi Zhuang Autonomous Region immediately dispatched a lifeboat when they received the distress call at 5.51 PM local time. The sailors are currently being treated in southern China and are reported in stable condition.
No information on the other ship is available as of yet. Chinese authorities said they had begun an official investigation into the collision.
Mr Page retires from Wheeling-Pittsburg
Business Times reported that Mr Harry Page who served as Wheeling Pittsburgh Corp's president and COO until December is retiring effective from April 1st 2007.
Mr Page, a 39 year veteran of the steel industry, joined Wheeling-Pitt in March 1998 as VP of engineering and environmental control and served as president and COO from April 2005 to December 2007, when he was named vice president of engineering.
Mr James Bouchard chairman and CEO of Wheeling-Pitt said that Mr John Davis vice president of purchasing and traffic will assume responsibility for Wheeling Pitt Steel engineering.
