May, 28 2007
Kobe Steel clarifies on reported steel investment in India
On May 23rd 2007, a Japanese newspaper wrote an article entitled "Kobe Steel to Enter India With Low-Cost Production Tech." Kobe steel release said that The article gave the impression that Kobe Steel had reached a concrete decision on undertaking a steel business in India. However, this is untrue.
The release said that The production technology mentioned in the article refers to Kobe Steel's next generation iron making technology, called ITmk3. This business does not entail the production and sale of steel products. Rather, the focus is on supplying production technology and plants that make iron nuggets for use by mining companies and electric arc furnace steelmakers.
It added that In India, there is a need for high quality iron units, such as iron nuggets, made from Indian iron ore. For this purpose, Kobe Steel is currently holding talks with India's Chowgule Group, which has mining interests, on the possible sale of an ITmk3 plant and supply of ITmk3 technology, etc. The talks are still ongoing. In addition to Chowgule, Kobe Steel seeks to promote the ITmk3 Process to other steel companies and mining companies that can make use of this technology.
AITUC demands scrapping of POSCO project
ZeeNews reported that Mr Gurudas Dasgupta CPI MP and AITUC general secretary on Sunday demanded that plan for POSCOs proposed steel plant in Orissa should be scrapped as it would accentuate poverty.
Mr Dasgupta at a convention organized by the AITUC to oppose the project said that "We are not demanding that the project be relocated to some other site. We are demanding that it should not be allowed to be set up in the state.
Mr Dasgupta said that POSCOs project would result in the farmers getting uprooted from their own land and livelihood. He said We are not opposed to industrialization as such but we oppose the POSCO project as it would accentuate poverty as no person can sustain himself on the basis of the compensation that is paid because of displacement.
Mr Dasgupta said that any foreign company interested to invest in India would only be keen on its profit and not the development of the state and urged AITUC activists to oppose the project. He said "We do not want foreigners to dictate terms to the people in an independent country.
Mr Dasgupta said that new industries coming up should be located in barren patches of un irrigated land where there would be no need for displacement. He said that "Land and mineral resources are being looted in the name of industry. We oppose this concept of development.
As per reports AITUC would organize four more such conventions during June at Paradip, Berhampur, Balasore and Sambalpur. After which a Parliament Chalo program would be taken up to oppose the POSCO Project.
VSC and TATA Steel to sign agreement for steel plant at Ha Tinh
Reuters reported that Vietnams state run Vietnam Steel Corporation is to sign an agreement on May 29th 2006 in Hanoi with TATA Steel for setting up a steel complex in the central province of Ha Tinh at an investment of USD 3.5 billion, following government approval granted on May 18th 2007.
Mr Mai Van Tinh chairman of VSC in an invitation sent to Reuters said that the steel complex would refine iron ore from Thach Khe mine to produce 4.5 million tons of steel products per year.
However, it is not clear how much of investment each side would contribute to build the complex.
VSC has been running several ventures with foreign companies to expand domestic production. In March VSC won an investment license to develop a USD 527 million hot rolled steel mill in the southern province of Ba Ria-Vung Tau with Essar group and the Vietnam General Rubber group. Vietnam has also planned several other steel projects involving steel majors like POSCO in a bid to reduce its reliance on steel imports.
GoM to take up mining and mineral export related issues
PTI reported that the contentious issue of iron ore exports is likely to be the key agenda when the Group of Ministers meets today. The GoM, headed by Mr Shivraj Patil home minister, will meet to decide on a host of matters pertaining to the mining sector. The committee is expected to take a call on the issue of coal mining and royalty payable to state governments and the issue of export duty on minerals.
Indian steel industry has suggested that unabated sale of ore to overseas markets could jeopardize its expansion plans. Steel ministry has suggested capping iron ore exports and tapering it off, besides seeking a tariff barrier on export of ore lumps with Fe content of 62% and above. National Council for Applied Economic Research has also warned that reserves will be exhausted within 19 years despite a freeze on overseas sales at the current level.
However, the mines ministry feels a cap on exports would be unjustified as ore reserves have shot up by nearly 2 billion tonnes from the current 23 billion tonnes and fines and low grade lumps have no market in the country. The ministry has opposed any ceiling on licensing or canalisation of ore export.
CEA releases guide for CDM project developers
PTI reported that Indias Central Electricity Authority has released a handbook to help those developing power projects using clean technology to calculate Certified Emission Reductions due to them enabling them to sell these credits to countries with emission reduction commitments under the Kyoto protocol.
Mr Sushilkumar Shinde union power minister at a recent workshop on clean power technology said that "Clean Development Mechanism is vitally important for the country's power sector. There is a need for CDM, not only for cleaner fuel but also for energy security." He added that this move reiterated India's strong commitment to reduce its emissions of greenhouse gases.
Mr Rakesh Nath chairman of CEA said that "This guide would be used as an authentic case for CDM projects. This is the first time in the world a country has brought out such information about CDMs." He added that the baseline data would help in obtaining uniformity of approach toward implementing CDM benefits.
CDM is an opportunity to introduce new and efficient technology and has a great potential in CDM projects in not only hydro, but coal as well. So far around 124 Indian clean projects are already registered under the CDM Executive Board and host country approval has been granted to as many as 421 other schemes by the National CDM authority, established under the Environment and Forests Ministry.
Haldia dock to commission a new berth soon
BL citing a Haldia dock source reported that a new berth is to be commissioned at Haldia dock shortly. The report cites the sources as saying that Everything is almost ready and the customs notification is awaited. The notification will be available any time." Another berth in the dock is due for commissioning in September this year.
The new INR 40 crore berth to be completed with a backup area of about 50,000 square meters including more than 10,000 square meters of paved area will have the capacity of 2 million tonnes. It will mainly handle dry bulk cargo. The commissioning of the No 2 berth will ease the congestion problem to some extent.
Haldia dock authorities are now finalizing the terms and conditions for hiring equipment as part of the plan to mechanize the new berths. There are proposals for acquiring on hire 5 mobile harbor cranes, 2 each for the 2 berths and one for the berth to be ready in September 2007 and also matching handling equipment will be acquired on hire. The suppliers of the equipment will also be responsible for the operation of the equipment by employing their own people. They will also guarantee minimum throughput and receive payments from the dock authorities on per tonne basis.
With the commissioning, the number of berths within the impounded dock will rise to 13. Outside the impounded dock, there are 3 oil jetties on the riverfront.
SECL to set up 1000MW power plant at Raigarh
BS reported that Coal India Limiteds South Eastern Coalfields Limited will set up a 1000MW power plant in Chhattisgarh. Mr BK Sinha CMD of SECL told BL that "The survey work has been completed and the company has selected a place near Raigarh district to set up 1000MW power plant. The company is also completing the other formalities and will start the work on project very soon.
The report cites an official of SECL as saying that SECL is in discussions with a Chennai based company for setting up the power plant. He said "The talks with the officials of the Chennai based company are in final stage and the deal is likely to be finalized at the earliest.
The official added that the company would also sign MoU with the Chhattisgarh government for the project for land and other subsidies from the government. The agreement would give the first right of purchase to the state government and promise power at production cost.
SECL is the flagship company of the CIL with its headquarters in Bilaspur in Chattisgarh. It produced 88.502 million tonnes of coal in 2006-07 and recorded a profit before tax of INR 1795 crore.
NTPC and Nigeria sign MoU for energy cooperation
National Thermal Power Corporation has signed an energy cooperation pact with the Nigerian Government. The MoU for energy cooperation was signed between NTPC and Nigeria's Ministry of Energy on May 22nd 2007.
NTPC would get access to at least three million tonnes per annum of liquefied natural gas on a long term basis at reasonable price for fuelling its projects in India besides getting assistance in participation in the bidding for gas block in the African nation.
NTPC would, in turn, set up and operate a 500 MW coal fired power plant and a 700 MW gas based power plant in Nigeria on its own or through a joint venture. NTPC shall also assist Nigeria utilities in rehabilitation, renovation and modernization of its power stations and also help in developing and upgrading existing training facilities.
NTPC officials did not give an estimate of the price at which LNG would be bought under the pact, but a statement from the company said it would get LNG at a "reasonable price."
Nigeria's has estimated natural gas reserves of approximately 104 trillion cubic feet, the tenth largest reserves in the world.
Revival package for HSL and Hooghly Docs awaiting clearance
It is reported that a parliamentary panel has sought an early implementation of the INR 799.61 crore packages for Hindustan Shipyard Ltd and INR 393.61 package for Hooghly Dock & Port Engineers Ltd.
As per report the two restructuring cum revival packages are at different levels of approval. HSL package is awaiting Cabinet approval, while HDPEL package is being considered by the Board for Reconstruction of Public Sector Enterprises.
The parliamentary committee noted that rehabilitation cum financial restricting proposal of INR 799.61 crore for the HSL yard is under consideration of the government and the Committee has recommended expeditious clearance of the proposal for capital restructuring of the yard. HSL has an order book position of over INR 2,000 crore. The committee also urged the government to clear the Department of Shippings proposal allowing HSL to raise a loan of INR 6 crore to 7 crore to pay the long pending retirement benefits of some of the employees who had opted for voluntary retirement when the company was sick.
The parliamentary committee has also recommended the grant of an early approval for the INR 393.61 crore revival packages of HDPEL. The Department of Shipping had proposed a waiver of the government loan with interest liability to improve the financial health in the restructuring package. The company was expected to turn profitable with the proposed waiver of loan and interest rate, the Department stated.
Doosan Infracore to setup excavators plant in India
South Korean construction equipment maker Doosan Infracore Company announced that it is planning to build a factory to manufacture excavators in India.
Dossan said that the plant, to be constructed by 2008, will have an annual output capacity of 3,000 excavators.
ABB to bags DMRC Phase II electrification package
ABB Ltd has been awarded an order worth INR 289 crore from Delhi Metro Rail Corporation to supply the turnkey electrification package for Phase II of Delhi Metro Rail project Phase.
The project scope includes electrification of overhead lines, provision of auxiliary substations and a state of art Supervisory Control & Data Acquisition solution interconnecting all the stations en route, linking the main receiving and traction substations to a central control center and a back up control center.
DMRC presently covers 65 kilometer of both underground and at surface level, with 59 stations in operation. Phase II aims to service another 100 kilometers with 75 stations and is part of a plan to nearly triple the mass transit system's length by 2010, so that it can carry an estimated 1.1 million passengers per day.
Naxals damage Indian Railway and Essar property in Chattisgarh
It is reported that activists of Naxal outfit CPI (Maoist) on Sunday triggered two landmines blasts, blowing up a railway bridge and track, and burnt properties of Essar Steel in Dantewada district of Chhattisgarh as part of a bandh.
A group of armed Naxalites triggered landmines blasts and damaged a railway bridge between Bacheli and Kirandul. Due to the damaged bridge, three wagons of a goods train derailed. In another incident, the Maoists damaged the railway track between Bhansi and Bacheli by landmine blast, disrupting transportation of iron ore from Dantewada. The ultras also burnt down some machineries at an Essar Steel facility in Maddadi.
The Maoists were observing bandh in Dandakaranya area of Bastar region of Chhattisgarh and parts of Orissa, Maharashtra and Madhya Pradesh to protest alleged fake encounters by the police.
BEML ties up with TEREX for high capacity mining trucks
It is reported that Bharat Earth Movers Limited BEML has tied up with TEREX of USA for manufacture of high capacity electric mining trucks of 120 tonnes to 360 tonne capacity.
BEML has also technology tie up for manufacture of massive mining machines like Rope Shovels and Walking Dragline with world leader Bucyrus International of USA, besides mining and construction equipments, metro coaches and railway rolling stocks.
Mining and construction equipment contributes a major share to the BEMLs turnover. Its product range includes Dozers, Dumpers, Hydraulic Excavators, Loaders, Motor Graders, Rope Shovels, Walking Dragline and underground mining equipment.
Klockner further expands presence in North America
It is reported that Klockner & Co AG is expanding its presence in North America even further. The acquisition of Premier Steel Inc at Shreveport in Louisiana closed on May 24th 2007. This new acquisition follows the successful closing of the previously announced acquisition of Primary Steel Inc on May 11th 2007.
Premier Steel offers a comprehensive range of steel and metal products which includes a significant number of customers involved in various aspects of the energy industry telecommunication forestry, general manufacturing and fabrication. It employs 34 people and achieved sales of approximately USD 30 million in 2006.
Dr Thomas Ludwig chairman of the board of management at Klkner & Co AG said that "Premier Steel is a company with an excellent standing which can be very easily integrated into our existing network in the USA where it will strengthen the very good market position already enjoyed by Namasco in the southern states of the USA. This new acquisition is in keeping with our aim of persistently expanding our presence in North America.
The recent acquisition of Primary Steel and this new acquisition of Premier Steel further strengthen the market position of Klkner & Co AG in North America the Klkner & Co subsidiary Namasco based in Roswell near Atlanta Georgia is now set to join the ranks of the top ten North American multi metal distributors.
China's steel exports may reduce in second half
Xinhua reported that Chinas steel industry analysts are predicting that China's steel exports will continue to rise in May despite government measures to dampen sales overseas and export figures for May would still be striking possibly even higher than April's as steel firms aimed to boost exports in anticipation of stricter controls.
Mr Jia Liangqun a senior industry analyst said that the rise in the cost of exports combined with the seasonal low demand in the global market in summer would probably lead to falling exports later in the year.
Mr Zhou Xizeng and Li Hongliang of CITIC Securities said that the policies would fail to reduce exports in the short run and would probably start to take effect from July.
Some analysts echoed their view saying companies could increase export in the near future to offset the effect of government policies.
The government scrapped or lowered a range of export rebates in April to curtail mounting exports and curb excessive production. Chinese government has imposed export tariffs of 5% to 10% on more than 80 steel products including steel wire sheet and plate and raised export tariffs from 10% to 15% on primary commodities such as steel billets ingots and pig iron from June 1st 2007.
The increases tariffs were the government's response to the April figures showing a record export of 7.16 million tonnes and China exported more than 21 million tonnes of steel in the January to April 2007 period.
IISI sees steel futures as distant prospect
International Iron and Steel Institute said that a futures market for steel is still a distant prospect because there are so many different types and it cannot be stored like metals currently traded on exchanges.
Mr Ian Christmas secretary general of IISI at the Reuters Global Mining and Steel Summit in London said that "A steel futures market is going to come at some stage, but not anything that I have seen presently on the table."
He said the initiatives on this have been coming from people who started off commodity exchanges and they look at it as a pure commodity but steel is not like that. He said "You cannot store steel. It does rust it does deteriorate talking about the level of stocks physical stocks it is a different value proposition "I cannot see any physical market in steel any time soon."
Mr Christmas said he could not see the current methods applied for trading other metals being right for steel which has thousands of different specifications. He said a mechanism would be needed that would allow the risk of price fluctuation to be shared and give the final consumer of steel some confidence about price.
The New York Mercantile Exchange and the London Metal Exchange are both working to launch steel futures contracts.
Xstrata extends offer for LionOre
Xstrata plc announced the extension of the expiry time for its all cash offer to acquire all of the issued and outstanding shares of LionOre Mining International Ltd for CAD 25 per LionOre share from May 15th 2007 to midnight Vancouver time on June 7th 2007.
All other terms and conditions of the Offer described in Xstrata's offer and offering circular dated 5 April 2007, as varied, amended and supplemented by Xstrata's notice of variation dated 15 May 2007, remain unchanged.
Xstrata expects to mail a formal notice of extension to all LionOre shareholders on or about May 28th 2007.
Export tax on steel raises concerns in iron ore import market
The negative impact of the new export tax on steel producers is set to ripple into upstream ore imports market which perches at a record level at the moment. Any negative news could be overestimated under current volatile market conditions. The new export tax has put immediate downward pressure on domestic steel price. The HRC price has received the most pronounced impact losing CNY 112 per ton within three days after the announcement on average in 23 major Chinese cities. Other steel varieties also have recorded price decline across the board.
The spot ore imports market has been supported by uprising domestic steel market and steep contract ore price so far. However a host of negative news is stoking great concerns among market participants. The transactions have dried up dramatically in the spot market following the new export tax with most buyers staying out of market in anticipation for lower price in the future.
Ore concentrate traders believe that domestic iron ore price is set to fall back in near future after touching the peak level of this year. Some dealers in northeast China who have held out for further price rise are starting to get rid of stock at the moment. As a result the local ports see increasing transactions or even panic selling. Meanwhile steelmakers also have made quick response. Currently some producers in Hebei province have already lowered the purchase price for ore concentrate by CNY 10 to CNY 20 per ton with more intending to follow suit.
It's the first time domestic steel mills reducing purchase price since last September. And the mills revealed that they can procure sufficient materials after lowering the price, indicating domestic ore concentrate price to retreat further in days to come.
(Sourced from MySteel.net)
DGCX to launch re bar future contracts in June
The Dubai Gold and Commodities Exchange announced that it would launch steel futures contracts on June 27th 2007 and that with the forthcoming launch of the steel rebar futures contract, DGCX is set to win the race among commodity exchanges for an internationally tradable steel futures contract.
DGCX officials said that the contract is expected to enable the industry to reduce the negative impact of steel price volatility in the UAE and the region. The openly traded futures will also allow financial market speculators to bet on whether steel prices rise or fall, just as they do in base metals, energy, currencies and stock markets.
Mr John Short executive director of steel and base metals at DGCX said that "With the introduction of futures in steel, the physical steel supply chain would be in a better position to mitigate the negative impacts of price volatility." Mr Short added that DGCX has plans to launch a suite of four futures contracts over the next few years. However the exchange will focus on the rebar futures for the next 18 months to 24 months.
Mr Colin Griffith chairman of DGCX said that "The DGCX futures prices will serve as a ready reference price to the steel trading community. Counterparty risk is mitigated as transactions executed on DGCX are cleared and guaranteed by Dubai Commodities Clearing Corporation."
DGCX officials expect that apart from the trade and industry hedgers taking advantage of the futures contract, a number of players in the physical market will be able to benchmark different steel products they deal against the Dubai rebar price.
IBS increases Brazils 2007 steel sales growth forecast to 7%
BNamericas citing an IBS spokesperson reported that the Brazilian Steel Institute has increased its forecast for domestic steel sales growth to 7% this year over 2006, up from the previous prediction of 6%. By comparison sales to the local market reached nearly 18 million tonnes in 2006.
The spokesperson added that sectors that are likely to push up the need for steel this year include automobiles, civil construction, shipping and gas pipelines.
Crude steel output in South America's largest producing country is expected to expand by 12.8% in 2007 over 30.9 million tones reported in 2006.
Cleveland Cliffs reported to be in center of consolidation moves
Platts reported that talk of possible mergers and acquisitions among iron ore producers have heated up, centering most recently on the North American producer Cleveland Cliffs. Cliffs' share price spiked 9% in trading last week on the New York Stock Exchange. Prior to the spike, the company's share price had doubled over the previous 12 months and was up about 56% this year to date.
Cliffs has for months been mentioned by analysts and stock pundits as a prime takeover candidate by virtue of its enviable market share and relatively small market capitalization about USD 3 billion. Two weeks ago the chatter began to intensify, with CVRD and Rio Tinto, the world's top two producers respectively, mentioned as possible buyers, along with steelmaker Arcelor Mittal.
Cliffs produced approximately 22 million short ton of pellets at its US and Canadian operations and 8.3 million ton of iron ore in Australia last year. The company's largest customer is Mittal Steel, part of the Arcelor Mittal. Mittal and Cliffs also co own Hibbing Taconite, a pellet joint venture (Mittal holds 62.3%) in Minnesota with a production capacity of 8.2 million short ton per year.
Cleveland Cliffs accounts for only about 1% of global output but is at the top end of a host of smaller producers and supplies iron pellets to many integrated steelmakers in the US. The company, itself the product of the consolidation of the North American iron ore industry, accounts for an estimated two thirds of North American iron pellets production and also produces ore in Australia.
Unlike the highly fragmented steel industry, in which frenzied consolidation is taking place, the global iron ore market is already relatively highly consolidated with about two thirds of the seaborne market is in the hands of just three producers CVRD, Rio Tinto and BHP Billiton, who have combined exportable output of more than 430 million tons per year accounting for 73% of global production.
Kumbas and Miferso hearing on Faleme postponed
It is reported that the next hearing in proceedings in the Dakar general regional court between Kumba Iron Ore and Miferso, the development agency of the Senegalese government, has been postponed.
The court action has arisen over Mifersos award last year of the Faliron ore exploration area, which Kumba has spent several years and millions of dollars exploring, to Arcelor Mittal.
Last month Kumba said it had been ordered off the Falsite and had instituted summary proceedings in the local court. Mr Ras Myburgh CEO of Kumba after the companys annual general meeting said that the contract with Miferso made provision for international arbitration and Kumbas board had still to make a decision on whether to take this step.
Mr Lazarus Zim chairman of Kumba had earlier said that he believed that it was a legally binding agreement with the Senegalese government, which had then entered into a similar agreement with another company.
Rautaruukki plans more acquisitions in steel construction
Reuters reported that finish steel company Rautaruukki plans more acquisitions and could borrow to fund its growth ambitions.
Mr Sakari Tamminen CEO of Rautaruukki during a Global Mining and Steel Summit in London told Reuters that "We are working with a number of potential acquisitions continuously. I would say that at the moment we are at the stage where the growth is not so much based any more on our succeeding in acquisitions. It is more driven by organic than it was, say, two years ago."
He declined to give more details on possible negotiations but said the company had dropped potential deals in the past when valuations were too rich. He said "I want to avoid overpaying.
Rautaruukki has paid cash for most of its takeovers, but Mr Tamminen said Rautaruukki would be happy to borrow if suitable acquisition targets are found.
In recent years Rautaruukki has shifted its focus from steel making to engineering and construction and has made a series of acquisitions to become the number one steel construction group in northern and Eastern Europe. Mr Tamminen said that Rautaruukki was not planning to exit steel making, but aimed to have sales from its steel and non steel businesses roughly in balance by the end of this year.
USs OSHA settles hexavalent chromium standard issue
US Department of Labor's Occupational Safety and Health Administration announced that it has signed an agreement with the National Association of Manufacturers, the Specialty Steel Industry of North America, Public Citizen Health Research Group and the United Steel, Paper and Forestry, Rubber, Manufacturing, Energy, Allied Industrial and Service Workers International Union.
This agreement settles NAM and SSINA's challenge to OSHA's hexavalent chromium standard. As a result of the settlement, OSHA will issue a letter of interpretation addressing specific questions NAM and SSINA presented to OSHA regarding the agency's new hexavalent chromium Cr(VI) standard for general industry. The letter will be issued by OSHA's Directorate of Enforcement Programs.
On or before May 24th 2007, NAM and SSINA will be filing a motion with the US Court of Appeals for the Third Circuit to withdraw their petition for review of the Cr(VI) standard. OSHA HRG, and the Steelworkers have agreed not to oppose any motion NAM and/or SSINA may file to intervene in support of the Cr(VI) standard in the remaining cases.
Arcelor Mittal scraps global IT standardization plan
Computer Weekly reported that Arcelor Mittal has abandoned a project to standardize business processes and consolidate on a single ERP system worldwide, to improve control across the firm's expanding business, as it would increase rather than cut complexity.
The report cites Mr Patrick Vandenberghe group CIO at Arcelor Mittal as saying that "We have dropped the idea of having one process model at group level because it was too complex and there was too high a diversity in business models and intrinsic complexity in the different segments is a very different business from one producing flat steel for automotive construction."
Mr Vandenberghe said Arcelor Mittal's goal was to buy the entire supply chain for steel manufacturing from raw materials to finished products, but these processes could not always be integrated.
Mr Vandenberghe said that IT to support the management of the business away from the supply chain was still on course to be centralized. He said all the IT infrastructure including networks, data centers, mail systems and desktops, would in time be standardized and managed on a global basis and at group level.
Mittal Steel which merged with rival Arcelor last year to create Arcelor Mittal had been working on a mammoth project to develop core business processes supported by a standard SAP system for deployment across the world. But the enlarged firm has rethought its plans and will instead standardize business processes and SAP systems in each of 10 business segments determined by market and geography.
Vietnams steel sector upbeat on new investments
VietNamNet Bridge reported that large numbers of investors are queuing up to get permission to invest in steel projects but not many projects have been licensed so far. A series of steel projects are awaiting appraisal from relevant ministries. These include
1. The JV steel company between Indian Essar and the Vietnam Steel Corporation in Ba Ria Vung Tau (USD 527million in investment capital, and 2 million tonnes per year in capacity).
2. The USD 1billion project suggested by Sun Steel and Taiwanese E-United Group in Ong Keo IZ in Dong Nai province.
3. The 4.5 million tonnes per year Thach Khe steel complex.
POSCO will start the construction of a steel mill in Phu My II Industrial Zone in the south capitalized at USD 1.128 billion. The project was granted an investment license in November 2006.
Prior to that a USD 1 billion project invested in by Thailand based Tycoons Steel International a subsidiary of Taiwans Tycoons Group International located in Dung Quat Economic Zone was licensed in September 2006.
Moreover the construction of a lot of small scale steel projects, capitalized at between USD 30 to 60 million is to be started in Phu My II IZ. These include ones run by Taiwans Tong Hwei specializing in making ingot steel and 100% domestic owned Hoa Sen Joint Stock Company specializing in making steel and construction materials.
Corus Strip Products to downsize workforce
British media reported that more than 200 jobs are likely to be cut at the TATA Coruss UK based Corus Strip Products, driven by CSP's commitment to create a sustainable strip steel industry in south Wales. A consultation will be held but the 212 jobs from the 1,500 strong workforces are expected to go later this year.
Mr Phil Dryden MD of CSP said that Llanwern still had a critical role to play alongside a hot rolling mill at Port Talbot. He said that "Our business performance continues to improve, reflected in the fact that we have recruited some 500 people into CSP UK over the last three years."
Mr Dryden said that the job losses would ensure the company had the right people in the right place in the right organizational structure and they would continue to recruit new young talent for the future. He said that the company is now in formal consultation with trade unions over redundancy terms and said every effort would be made to find jobs internally for those affected.
Norway to help Vietnams shipbuilding sector
VNS reported that Norway has committed to supporting a project aimed at boosting technology and improving management and product quality control at the Viet Nam Shipbuilding Industry Group.
An agreement on the project was signed between Mr Vo Hong Phuc Minister of Planning and Investment of Vietnam and Mr Kjell Storlokken Norwegian Ambassador to Viet Nam. The two sides said they hoped the agreement would mark an important step forward in co-operation between Viet Nam and Norway in the shipbuilding industry as well as help to open a new chapter in the countries bilateral relations.
The agreement would create the framework for Viet Nam to implement the USD 3.9 million shipbuilding training project in Viet Nam aimed at boosting the efficiency of Vinashin and raising its operations to an international standard.
The project, which would be implemented in three years, attracted the participation of Norways three leading shipbuilding companies, who contributed half of the projects investment capital.
Explosion kills 1 at Arcelor Mittals Luken Steel Complex
CBS Broadcasting reported that at least 3 metal workers were seriously injured when a boiler suddenly exploded at the melt shop in Mittal Steels old Lukens Steel Complex, formerly ISG Plate, in South Coatesville in US.
Two men were flown to the burn unit at Crozer-Chester Medical Center, where one died during the night and the other injured worker was listed in critical condition. A third victim was taken to Temple Hospital's burn unit, where he remained in critical condition.
Police said that the explosion rattled nearby homes and could be heard up to 2 miles away. Authorities are still investigating the cause of the explosion.
The plant makes armor plating for military Humvees.
Irans steel output up by 15% YoY
MNA citing Mr Taqi Bahrami Noshahr head of Iranian Steel Producer Association reported that Iran has produced over 1.3 million tonnes of steel since March 21st 2007 up by 15% YoY as compared to that of previous year.
Mr Taqi has predicted that the production will increase to 14 million tons by the end of current Iranian year ended March 20th 2008. He added that Iran exported 1.5 million tonnes of steel products and raw steel last year and predicted that the export rate of the current Iranian year will be increased to 3.1 million tonnes.
Iron ore mine accident leaves three dead in Fengyang
Xinhua has reported that a cave in killed 3 people and injured another at an iron ore mine in east China's Anhui province on Friday night.
As per report, the shaft collapsed at 8:10 PM in Haixin mine in Fengyang county as 4 people were doing maintenance work. Two of the workers died at the scene and another one died later in the hospital where the injured worker is receiving treatment in the hospital and in stable situation.
All the victims were from Tongshan county of neighboring Jiangsu province.
The cause of the accident is being investigated.
Kumbas and Miferso hearing on Faleme postponed
PTI reported that Indias Central Electricity Authority has released a handbook to help those developing power projects using clean technology to calculate Certified Emission Reductions due to them enabling them to sell these credits to countries with emission reduction commitments under the Kyoto protocol.
Mr Sushilkumar Shinde union power minister at a recent workshop on clean power technology said that "Clean Development Mechanism is vitally important for the country's power sector. There is a need for CDM, not only for cleaner fuel but also for energy security." He added that this move reiterated India's strong commitment to reduce its emissions of greenhouse gases.
Mr Rakesh Nath chairman of CEA said that "This guide would be used as an authentic case for CDM projects. This is the first time in the world a country has brought out such information about CDMs." He added that the baseline data would help in obtaining uniformity of approach toward implementing CDM benefits.
CDM is an opportunity to introduce new and efficient technology and has a great potential in CDM projects in not only hydro, but coal as well. So far around 124 Indian clean projects are already registered under the CDM Executive Board and host country approval has been granted to as many as 421 other schemes by the National CDM authority, established under the Environment and Forests Ministry.
