March, 08 2007
Corus shareholders approve TATAs offer for Corus sale
Shareholders of Corus have agreed to TATA Steel's offer for takeover at 608 pence per share. Corus after an extraordinary general meeting announced that investors representing 97.48% of the shares backed the purchase well above the 75% required for approval.
Mr B Muthuraman MD of TATA Steel said Tata Steel is pleased with the outcome of the EGM held in London on Wednesday. It stands committed to work along with Corus to create a vibrant and value creating enterprise.
The acquisition is scheduled to take effect April 2 and Corus shares will stop trading on exchanges on March 29th 2007. The takeover will create the world's 5th largest steel group producing 25 million tons of steel a year.
Export tax on iron ore to have minimal impact on Chinese steel makers
India's decision to impose a tax of INR 300 per tonne on iron ore exports from March 1st wont impact too much on Chinese side in the long term. Although, Indian supply accounts for a 5th of China's total ore imports however it is declining from last year as both domestic ore miners in China and those in Brazil and Australia are pouring investment to expand production.
China's leading mills showed little concern about the Indian duty as most of them rely on Australian and Brazilian iron ore. The lower freight costs between India and China have allowed Indian exporters to compete effectively with other suppliers of China, however, the USD 6 per tonne to USD 7 per tonne export tax will wipe out that advantage, with 9.5 % rise on benchmark ore price only amounts to an increase of USD 4 per tonne to USD 6 per tonne for fiscal 2007 starting from April 1st.
China has already seen a USD 10 per tonne rise in spot prices for Indian ore grading 63.5 % Fe since the end of last year but its capacity to absorb a further USD 6 per tonne to USD 7 per tonne rise remains to be seen. Market analyst noted that however Indian iron ore suppliers will most probably win the battle and get the price increase pushed through in the end, as a result of China's healthy demand and India's position as its 3rd largest iron ore supplier.
A senior official with Sinosteel India suggests that the Indian miners are putting pressure on union government to adjust the tax rate. A revised decision may come out in two weeks, if the opposition is loud enough. Officials from iron ore sector warn that the country risks losing market shares in China to Brazil due to the cost increase.
(Sourced from Mysteel.net)
CIL plans to increase coal washing capacity
Business Standard reported that Coal India Limited has lined up an INR 4,500 crore investments to increase capacity of country wide washeries by 5 times. Mr PS Bhattacharya CMD of CIL told Business Standard that "We are exploring the possibility of working out such a plan. Nothing more could be disclosed at the moment."
The Union ministry of environment and forests has recommended maintaining a benchmark of 34 % ash content on all coal qualities. CIL has been able to meet the benchmark level through its washeries as the washery yield is in the region of 48%.
CIL has a total of 18 washeries consisting of 11 for coking coal with BCCL owning 6, CCL 4, WCL one, along with 7 non coking coal washeries with a capacity to produce 12 million tonne of washed coal. CIL currently produces about 5 million tonne of washed coking coal through its 11 washeries with ash contents of around 18% to 20% as against imported coking coal from Australia with ash contents as low as 8% to 10%.
As per report, CIL plans to augment the capacity to 60 million tonnes in the next few years including 55 million tonnes of non coking washed coal for power stations and 5 million tonnes of coking coal for steel plants. The demand for coking coal is around 23 million tonnes.
TATA Steel takes control of Rawmet
TATA Steel announced that pursuant to the definitive agreement signed on January 15th 2007, it has acquired 100% of equity stake in Rawmet Industries Pvt Ltd at an enterprise value of INR 101 crores.
The board of Rawmet has been reconstituted with nominees of the TATA Steel. Its board now consists of five directors out of which four are nominees of the TATA Steel.
Rawmet has a Ferro Alloy Plant near Cuttack, consisting of two 16.5 MVA semi closed electric arc furnace having a capacity of producing around 50,000 tonnes per annum of High Carbon Ferro Chrome.
Indian government increase coal demand forecasts
Indias demand of coal has been increasing with the national economy steadily doing well and as against the demand of 460.50 million tonnes as envisaged in the 10th Five Year Plan document for the year 2006-07, Indian government has now revised it to 474.18 million tonnes during 2006-07. Indian governments working group on coal and lignite has recently worked out a demand of coal of 731.10 million tonnes in the terminal year of 11th Plan in 2011-12 as against the earlier projected demand of 620 million tonnes.
Dr Dasari Narayana Rao minister of state for coal informed Lok Sabha that as against the compounded annual growth rate of 3% during 9th Plan in respect of coal demands it is expected to increase to 5.5% during the 10th Plan. He added that the increase in coal production which was 2.53 % during the 9th Plan and has improved to 5.7% during the 10th Plan.
Dr Rao informed that several measures have been taken to bridge the gap between demand and supply including 97 mining projects undertaken for implementation by CIL during 10th Plan. In addition all new mines are being planned with mechanization. Increasing productivity in both underground and opencast mines along with allotment of 123 coal blocks to various private & public sector companies and emergency coal production for increasing production in existing mines & projects also include the important measures taken in this direction.
Dr Rao however said that the coal demand is a function of growth of national economy irrespective of availability of coal from domestic sources.
UGSL considering CR & galvanizing JV in Ghana
It is reported that Uttam Galva Steels Limited is negotiating a JV with a UK based Liberty Commodities to set up a INR 450 crore galvanizing and cold roll mill complex in Ghana.
AS per report the JV firm, Ghana Iron & Steel will initially invest about INR 270 crore. the complex will include a hot dip galvanizing line with a capacity of 75,000 tonne per annum that will be functional in 18 months and a 250,000 tonne per annum cold mill will be set up to feed the galvanizing unit. The JV may also set up a galvalume line later.
However as the media report mentioned that JV agreement has been finalized, Uttam Galva Steels Ltd has clarified to BSE that it is in the advanced stage of negotiation on the terms of JV with UK based company for setting up a galvanizing and cold rolled mill complex in Ghana but no agreement has been executed as yet.
NTPC may form a subsidiary for overseas operations
Times news network has reported that National Thermal Power Corporation is planning to float a subsidiary for its international operations.
Mr T Sankaralingam CMD of NTPC told ET that nothing has been finalized yet as the global foray is only at nascent stage. Once the agreements for the major overseas projects are signed the company will consider floating a new subsidiary.
NTPC has already signed an agreement with Ceylon Electricity Board and the Sri Lankan government for setting up a 500 MW plant at Trincomalee in Sri Lanka under a 50:50 JV between NTPC and CEB. NTPC is likely to sign an agreement with the Nigerian government for the USD 700 million projects within a month as the Nigerian government has agreed to provide gas for the project. It has also submitted a non binding bid for buying a 685.2 MW Sidi Krir power project in Egypt owned by British power investment firm Globeleq.
CPI alleges harassment of tribal for TATA Steels plant land in Bastar
IANS reported that Communist Party of India has alleged that Chattisgarh government is harassing dozens of tribal families to surrender farm land to enable TATA Steel to set up a steel plant in Bastar. However, police has denied that local people were being harassed to give up land as alleged.
Mr Chittaranjan Bakchhi national executive member of CPI told IANS Tata Steel cannot walk away so easily with the fertile ancestral farmland of innocent tribals in Lohandiguda area. We are not against the Tata plant, but we definitely oppose the usurping of farmland by misleading local tribes. The government and the police are adopting all sorts of tactics to crush the tribal movement and seize their land.
Mr Bakchhi alleged that police had recently sexually abused several tribal women and beat up their male family members for not supporting government for a smooth transfer of their farmland. He told that Police have crossed limits in Lohandiguda. We are reporting the sexual harassment case by cops to the National Commission for Women and other human rights bodies for a probe into the matter.
The Chhattisgarh government, under a MOU signed on June 4th 2005, has promised TATA Steel that it would provide 5,157 hectares, a mix of private and government land, in Lohandiguda are which is about 32 kilometer from the Jagdalpur the district headquarters of Jagdalpur to set up the five million tonnes per annum plant and to develop the township.
China to suspend buying Indian iron ore Report
India's decision to levy export duty of INR 300 per tonne on iron ore without a grace period has irked Chinese importers saying the move would kill India's largest market and affect the India's credibility. Chinese state media reported that a group of Chinese importers have agreed to temporarily boycott iron ore from India to protest imposition of tax on export of iron ore.
China Chamber of Commerce of Metals, Minerals and Chemicals Importers and Exporters called for an urgent meeting of about 100 Chinese importers of iron ore to discuss its response to India's duties. An official after the meeting said The policy will have considerable impact on the country's iron ore imports. He declined to provide details of the meeting's outcome and said He cannot confirm the reported boycott plan.
Sinosteel Corp said it stopped buying iron ore from India.
Mr Hong Sen Wang MD of SinoSteels Indian operations said The tax makes Australian ores more competitive. We will reverse our decision as soon as the government takes the necessary steps.'' Mr Zhang Lihua, a supply manager with Rockcheck Steel Group said that "We will not import iron ore from India in the immediate future."
Chinese steel makers are worried that other exporters would follow suit. The Chinese media said some experts even proposed that China should report the issue to the World Trade Organization for an investigation.
Mr Luo Bingsheng executive VC and secretary general of China Iron and Steel Association said that "Such an imposition of taxes without a buffer period is a scary thing both for local and international business community as it jeopardizes all long-term plans and commitments."
India may ban export of cement to check domestic prices
It is reported that Indian government has ruled out reversal of its intent to levy higher excise duty on costlier cement and has threatened to ban exports in a bid to cool prices in local markets.
Mr Kamal Nath union minister for commerce and industry told reporters that no compromise had been worked out between the government and cement manufacturers. He said "Nothing is on the anvil. We are waiting for them to get back to us." Mr Nath warned that the government may explore the possibility of banning cement exports if it helped check the trend of rising prices. He said "We will look at that if that helps in bringing down cement prices."
Mr KM Chandrasekhar revenue secretary also ruled out the possibility of government going back on its stand. He said "With increasing margin for profits, rising prices are a cause of concern. Steel companies have reduced prices and we expect cement companies to do the same.
Mr Anil Singhvi MD of Gujarat Ambuja Cements Ltd said "A ban on cement exports is not possible. It is not only cement that is involved, it is the reputation and prestige of the country. We have entered into long-term contracts for exports, we have to ensure that our customers are supplied on a continuous basis."
Several manufacturers have raised cement prices by INR 12 per 50 kilogram bag citing cost pressures after the Budget proposed a hike in excise duty on cement to INR 600 a tonne from INR 408 for bags sold at more than INR 190. Cement manufacturers reiterated that they would consider a roll back in prices only if the government reversed the tax increase introduced in the budget.
JFEs Guangzhou auto steel JV to expand capacity
JFE Steel announced that it has agreed with Guangzhou Iron and Steel Enterprise Holdings for expanding the business of their JV for producing hot dip galvanizing steel for automobiles Guangzhou JFE Steel Sheet Company. The companies plan to commence construction in 2007 with completion expected around 2010.
GJSS will build additional production facilities including a 1.8 million tonnes per year cold rolling mill, 1 million tonnes per year continuous annealing line and a 400,000 tonnes per year continuous galvanizing line at Guangzhou in China.
JFE also said that the JV's share ratio will be changed to 50% by JFE Steel and 50% Guangzhou Iron and Steel from current 51% by JFE Steel and 49% by Guangzhou Iron and Steel.
CISA concerned on high investments in steel sector
Chinese government is aware of the planned investment in under construction projects in China's iron and steel industry hit more than CNY 600 billion (USD 77.47 billion) at the end of 2006 although China's fixed assets investment in steel projects in 2006 slowed to CNY 224.650 billion (USD 29.02 billion) down by 2.5% YoY from 2005.
Mr Luo Bingsheng vice chairman of China Iron and Steel Association during the 10th session Chinese People's Political Consultative Conference said that overcapacity is still a major problem for the development of China's steel industry and that the government should be cautious towards the expansion of redundant capacity which has caused excessive investment and high risks.
Mr Luo also said out of date capacity was still 20 % of the country's total steel capacity and the slow pace of eliminating out of date capacity is hindering development of domestic steel enterprises.
Mr Luo said the State Council and the National Development Reform Commission would soon implement specific controlling policies to achieve these goals. He predicted China's steel demand will go up 13% this year as the country's fixed assets investment is expected to grow by no less than 20 %.
China aims to eliminate 30 million tonnes of iron smelting capacity and 35 million tonnes of steel smelting capacity this year, and will shut down steel mills with a total capacity of 100 million tonnes out of date iron capacity and 55 million tonnes steel capacity during 2005 to 2010.
UBS sees firm global steel prices
Analysts at UBS forecast that spot prices in the global steel market may remain firm for the foreseeable future.
The analysts mentioned that steel prices have been rising since the Chinese New Year and that US has also witnessed a price recovery, following lesser pressure on prices due to lower import prices.
UBS however added that the risk factors to steel prices remaining firm are an oversupply in China and a decline in global economic growth.
China to hold talks with US over WTO complaint
According to the Ministry of Commerce, China will hold consultations with the United States later this month on industrial subsidies that Washington has complained about. The ministry told China Daily that "China has accepted the US request for consultation and the two sides will launch talks in Geneva in the last 10 days of this month where."
Mexico, Japan, the European Union and Australia will join the Sino US consultation as a third party. It also said China will accept the request for separate consultations filed by Mexico.
Chinese experts said that the US had not put forward evidence on China's industrial subsidies and the United States and other developed countries granted much higher subsidies such as export tax rebates to their own industries.
According to WTO regulations the two sides have to settle the issue within 60 days through consultations. If they fail the United States can appeal to a WTO dispute settlement panel.
Qasco & Sabic take stake in Mauritanian iron ore project
It is reported that Qatar Steel Company and Saudi Basic Industries Corporation have signed a MoU with a Mauritanian iron ore producer Societe Nationale Industrielle et Miniere and its partner Sphere Investments Ltd for cooperation in iron ore development.
A new jointly owned Mauritanian company will be established to launch the Project including entering into off take and other service agreements. SNIM and Sphere through a 50:50 holding company will own 50.1% equity in new company with Sabic owning 34.9% and Qatar Steel holding the remaining 15%.
Under the terms of the MoU the partners have agreed to work towards the joint development of the project with the aim of first DR pellet production by 2010. The project will produce DR grade pellets for steel production by leading international producers including Sabics Hadeed and Qatar Steel.
Sabic and Qatar Steel will make the investment subject to satisfactory results of a bankable feasibility study which is expected to be ready by late October this year.
SNIM and Sphere are the joint owners of a world class iron ore project Guelb el Aouj Direct Reduction Pellet Project, initially planned to produce 7 million tonnes per annum of direct reduction pellets for a period of over 30 years from a high quality reserve. SNIM commenced operations in 1963 and supplies around 12 million tonnes of iron ore per annum to the internationally traded market.
ONeal Steel forms High Performance Metals Group
It is reported that US based metals service center ONeal Steel is coordinating operational activities, customer services, stocking and processing of aerospace grade and other high performance metals at 5 of the Birmingham based parent companys independently operated business units. While continuing to do business individually, the five companies will form a new supply cooperative known as the ONeal High-Performance Metals Group. The group plans to provide deep material inventories, in house knowledge of markets requiring high-performance metals, robust information systems and vertical supply chain tools and state of the art domestic.
The 5 companies involved are
1. Exton based TW Metals which stocks and processes pipe, tube, bar, rod, sheet and plate in stainless, aluminum and a variety of nickel and titanium based super alloys. TW has a large distribution network in the US, Europe and Asia.
2. South Windsor based Aerodyne Alloys, a major world supplier of such specialized materials as nickel, cobalt and titanium based alloys.
3. Ohio based Ferguson Metals of Hamilton, a leading supplier of specialty stainless steel and high-temperature alloys, with comprehensive in-house slitting, leveling, edging, and shearing capabilities.
4. Cincinnati based AIM International which serves the aerospace turbine engine and airframe markets as a processor and distributor of bar, plate, and sheet forms of nickel, cobalt, titanium, stainless, and alloy steel. More than half its sales derived from customers outside North America.
5. Cincinnati based Supply Dynamics, the leading provider of raw material consolidation solutions known as material demand aggregation. The company provides original equipment manufacturers and their sub-tier suppliers with innovative processes, proprietary information technology solutions and unique sourcing methodologies.
Mr Craft O Neal chairman of ONeal Steel said that the objective of ONeal-HPMG is to be the only global source a customer will ever need to service its raw material and related supply chain needs. He added that the initial phase of integration activities will combine inventories of heat resistant flat and long products to take full advantage of cut to length, slitting and other operational synergies.
3 Chinese coal companies cross 100 million tonne sales in 2006
It is reported that 3 Chinese coal companies sold more than 100 million tons of coal in 2006.
Shen Hua Group Corp Ltds output of 203 million tons of raw coal in 2006 is up by 35.6% YoY made it China's first coal company to reach the milestone of 200 million tons. Its sales soared 40 %YoY to 240 million tonnes out of which 10% was exported. Its revenues was CNY 83.8 billion up by 26% YoY and profits was CNY 25.6 billion up by 16.4% YoY.
China National Coal Group Corp came second in terms of output producing 90.6 million tons of raw coal in 2006 up by 26.1% YoY. China Coal sold 103.15 million tons notching up profits of CNY 4.13 billion on revenues of CNY 52 billion.
Datong Coal Mine Group Corp produced 61.75 million tons of coal and sold 104.1 million tons last year and reported a profit of CNY 200 million on sales of CNY 27 billion.
According to figures from the National Bureau of Statistics China consumed 2.37 billion tons of coal in 2006 up by 9.6% YoY .
Jiangsu to eliminate obsolete steel capacity
According to industrial news source, Jiangsu Province has recently issued firm scheme to put obsolete steel capacity elimination into practice which is asked by Chinas National Development and Reform Commission.
Jiangsu Province blacklisted as one of major regions reporting out of date steel capacity will wash out 5.92 million tons of backward iron making capacity and 4.62 million tons of backward steel making capacity during 11th Five Year period. The province will publish the list of BFs with size of less than 200 cubic meter and converters & EAFs with capacity of less than 20 tonnes that should be phased out before the end of 2007.
The obsolete iron making capacity and steel making capacity of steel makers in North China and East China accounts for 81% and 59.8% of the nations total respectively.
(Sourced from Mysteel.net)
Changes in Vallourecs supervisory board
Vallourec's supervisory board, at its meeting on 6th March 2007, has accepted Mr Vincent Bollore's decision to resign from the board with effect from 5 March 2007. Mr Bollorjoined the Supervisory Board in June 2004 at a time when his group held a stake of over 25% in Vallourec's capital.
In addition, Vallourec's supervisory board has co opted Professor Dr Edward G Krubasik to replace Mr Wolfgang Leese chairman of the executive board of Salzgitter AG, who resigned in late August 2006 following Salzgitter's disposal of its holding in Vallourec.
After a long career with McKinsey, Mr Krubasik spent almost a decade, from 1997 to 2006, as a member of Siemens' Executive Board, on which he held a prominent position. He is a member of Dresdner Bank's Supervisory Board and participates in the work of a number of organizations, notably as a member of the German Council for Sustainable Development and as Vice President of the Presidential Board of the Federation of German Industries.
Mr Jean-Paul Parayre chairman of Vallourec's supervisory board said "We are delighted that Mr Edward G Krubasik has agreed to become a member of our Board. He is a skilled administrator and an expert in matters of corporate strategy, and will certainly contribute to the effectiveness of our work due to his extensive professional experience."
Indonesian move of export quota may push global tin prices
Local press has reported that Indonesia plans to impose quota on tin export in attempts to lift prices in the international markets as Indonesian tin production is estimated to fall to some 80,000 tons in 2007 from the average of 120,000 tons in the last few years following last year's major crackdown on illegal tin miners on Bangka Island.
Leading economic daily Bisnis Indonesia said the size of the export quota would be determined later by the Ministry of Trade and the Ministry of Energy and Mineral Resources. The report mention that worries of shorter supplies from the world's second largest tin producer have lifted price to around USD 12,000 per ton and Indonesia apparently happy with the current price level will impose a quota to defend the level.
Mr Mangantar S. Marpaung official at the Department of Energy and Mineral Resource was quoted as saying earlier that the export quota aims to allowing us to take control of tin price for bigger benefits of the country.
Mr Neil Buxton MD of London based GFMS Metals Consulting Ltd said "Any move to introduce quotas that leads to a short term drop in production would be supportive of the price he said Historically quota systems hadn't been successful in encouraging higher prices in the long term.
Mr Peter Kettle, manager for statistics and market studies at International Tin Research Institute said that tin may rise to USD 20,000 a ton if supply from Indonesia falls to less than a forecast 90,000 tons in 2007.
SDI to modernize caster at Columbia City plant
Steel Dynamics Inc is planning to modernize its existing 3 strand bloom & beam blank casting machine at its plant at Columbia City in Indiana and has awarded a contract to Siemens Industrial Solutions and Services. The project is scheduled for completion by the third quarter of 2007.
The scope of the project includes the addition of a fourth strand, implementation of new casting formats of 7x7 and 8x10, supply of second strand containment segments for various strand widths, relocation of the torch cutting machine and extension of the run out area in addition to the supply of hydraulic and electric and automation equipment.
Steel Dynamics Inc is USs 5th largest producer of carbon steel products on the basis of production capacity and employs approximately 3,300 persons. It operates 5 electric furnace mini mills with a total steel production capacity expected to reach 6 million tons per year in 2007 and produces merchant bars, engineered bar products wide flange beams rails and flat rolled steel. Finishing facilities in Butler and Jeffersonville produce pickled cold rolled, galvanized and painted flat roll steel.
Mr Chabanier to step down as CEO of Dofasco
Dofasco announced that Mr Jacques Chabanier President and CEO of Dofasco Inc has announced his intention to resign effective on the appointment of a successor by Dofasco's board of directors which is expected to be finalized within the next few weeks. Mr. Chabanier will also step down as CEO of Quebec Cartier Mines a wholly owned subsidiary of Dofasco. Mr Chabanier was appointed CEO in July 2006.
Mr. Chabanier said "I believe this is the appropriate time to hand the reins of the company to an individual able to make a long term commitment to Dofasco's success as a business unit of Arcelor Mittal's North American flat carbon steel division. I view Dofasco's future within Arcelor Mittal very optimistically as Dofasco enters the integration process with an ambitious plan to enhance the company's competitiveness and lever its ability to provide superior quality and service to its customers."
Mr Aditya Mittal CFO of Arcelor Mittal said "Mr. Chabanier has had a distinguished career with Arcelor Mittal and its predecessor companies. It was with great regret that the Management Board learned of his decision to return to Europe. We are nevertheless gratified that he will continue to lead Dofasco throughout the transition. On behalf of the Management Board I thank him for his service particularly his excellent work at Dofasco."
Stelco reports higher losses for Q4 of 2006
Canadian steelmaker Stelco Inc reported a Q4 loss, before income taxes, of CAD 145 million as compared with CAD 103 million for the Q4 of 2005.
For the 9 month period, since exiting from CCAA, the company reported a loss before income taxes of CAD 187 million, which includes unusual items relating to fresh start accounting and the operational restructuring totaling CAD 110 million. Net sales for the 9 month period ending December 31st 2006 were CAD 1.83 billion on shipments of 2,562,000 tonnes.
Production facilities were closed during the Q4 for a period of time to enable completion of several strategic capital projects including the reline and upgrade of the blast furnace at the Hamilton plant to increase throughput and to extend the interval for the next furnace reline to 2018 and the phase two expansion of the Lake Erie hot strip mill which is expected to increase throughput by 20% over previous levels.
As a result of these upgrades and lower demand, production for the quarter fell to 611,000 tonnes representing a decline of 33% over the Q3. Stelcos Q4 results were also negatively impacted by lower demand in the automotive and steel service centre sectors, which contributed to a reduction in spot prices for steel and lower shipments during the quarter. In addition Stelco experienced higher input costs during the Q4.
Mr Rodney Mott president and CEO of Stelco stated that "Our goals upon exiting CCAA were to quickly implement change in the culture and direction of Stelco. I am pleased with the progress we have made and compliment our employees for their willingness to accept the ongoing changes. We have more work to do to optimize our performance but the biggest hurdles are behind us, and our. Long term competitive position is substantially improved. We have a positive outlook for 2007 and have positioned our operations to respond quickly to increased demand for steel in first quarter."
China Special Steel to buy iron ore rights in Indonesia
China Special Steel Holdings a maker of bearings and springs for cars and machinery has agreed to pay HKD 2.73 billion for a sourcing firm that will give exclusive right to buy ores from an Indonesian mine.
The company said the Indonesian rights will be purchased through Infonics International Ltd a subsidiary of China Special Steel. The sourcing firm is 78% owned by Special Steel's controlling shareholder and Chairman Mr Dong Shutong and two independent businessmen valued at USD 473.8 million by an independent valuer.
The company also announced that it will issue 56.1 million new shares and convertible bonds to Deutsche Bank AG to raise about HKD 700 million. The funds will be used for business expansion in production of special steel and working capital requirements for a new processing facility in China.
SMS sells plastics machine business to Triton
SMS GmbH has sold its Battenfeld Extrusionstechnik and Cincinnati Extrusion groups to Triton, an independent European private equity investor. The transaction is still subject to approval by the anti trust authorities.
Triton is acquiring all the companies in the SMS group that manufacture machinery and plant equipment for tube and long product extrusion and related areas. These are Battenfeld Extrusionstechnik GmbH at Bad Oeynhausen in Germany, SMS Extrusion Kempen GmbH at Kempen in Germany, American Maplan Corporation at McPherson in USA, Battenfeld Extrusion Systems Ltd at Shunde in China, Cincinnati Extrusion GmbH at Vienna in Austria, Cincinnati Extrusion Inc at Erlanger in USA and Cincinnati Extrusion Ltd at Dalian in China. Overall these companies achieve sales of some EUR 200 million with around 1,000 employees.
The sale is a consequence of the SMS group strategy of focusing on its core businesses of metallurgical machinery and plant production under the SMS metallurgy brand.
Japan SS scrap export to China on rise
JMB reported that Japanese stainless steel scrap export to China continues expanding. As per report the export to China increased to about 4 times in January 2007 from a year ago.
Japanese dealer source said Japanese stainless steel scrap export would increase in 2007 along the trend of Chinese stainless steel production continuation.
Chinese stainless steel production exceeded Japanese production in 2006 and it became to the world largest stainless steel producer.
ConsMin eying overseas acquisitions
Australian miner Consolidated Minerals announced that it wants to expand offshore particularly in iron ore and manganese mining and that as part of that plan, it is considering several transactions and looking overseas.
Mr Rod Baxter MD of ConsMin at a presentation in Sydney said the company had to expand outside Western Australia if it was to maintain its dominance in a consolidating market. He said "More of the same is not going to excite the investor. We need a strong share price to make our position grow on the face of major changes in the resources industry. We are looking for growth through acquisitions and other transactions."
But Mr Rod Baxter said the company would be careful of the political risks of certain countries. He said that "We will be careful of the certain political risks of certain countries. We always look at the political risk. We are going to be very careful where we go."
Pallinghurst Resources Fund and US coal company AMCI launched a takeover for Consolidated Minerals valuing the diversified miner at AUD 625 million last month. The new company will be 60 % owned by Pallinghurst headed by former BHP Billiton chief Mr Brian Gilberston and AMCI with Consolidated Minerals's shareholders holding 40 %.
ChTPZ not planning more IPOs
Interfax reported that ChTPZ Group is not planning any initial public offerings for shares in its pipe and services divisions in the near future.
Mr Sergei Moiseyev MD of Arkley Capital, which runs the group's assets, when asked whether any of the group's other members intended to offer shares on the market, said "In the near future, absolutely not."
ChTPZ Group's Chelyabinsk Zinc Plant floated in London towards the end of last year.
ChTPZ Group includes Chelyabinsk Tube-Rolling Plant, Pervouralsk New Pipe Plant, Chelyabinsk Zinc Plant, Uraltrubostal Trading House, pipeline bend producer ZAO ChTPZ-Integrated Pipe Systems, pipeline fittings producer MSA-Integrated Pipe Systems and scrap recycler ZAO ChTPZ-Meta.
Aquarian negotiating to acquire coal properties in Zimbabwe
Aquarian Gold Corp announced that it has entered into negotiations with local parties with the strong objective to acquire interest in the vast coal fields of Zimbabwe and that the areas of interest include substantial concessions close to the South African border.
Zimbabwe is a significant producer of bituminous coal and has large reserves of high grade coal and coal bed methane. The country has seen limited exploration as high inflation and past uncertainty about the intentions of the government has deterred investors.
Aquarian now believes that this presents an opportunity to position the company in a country with large scale production potential and a good communications infrastructure.
Vietnam to cancel four mega projects
It is reported that the Vietnamese government is proposing to halt four projects due to inefficiency. The projects include an iron ore mining, a methanol production unit and 2 power plants.
Mr Hoang Trung Hai industry minister of Vietnam told a committee of Vietnams national assembly that the methanol production project is not feasible because the raw material costs for production were too high. He reported the iron ore exploitation and processing project was encountering similar problems. The Wartsila Ba Ria power plant w could not be launched as the investor had asked for a premium price for electricity sold to EVN when the plant was completed. The Amata power plant intended to be built in the Amata Processing Park in Thu Duc district of Ho Chi Minh City was to be cancelled due to the high compensation payment for land clearance.
The 4 projects are part of a bigger one including 15 projects of around USD 6.095 billion approved by the Vietnams national assembly in 1997.
