SAIL signs MoU with L&T for power plants

BS reported that Steel Authority of India Limited and Larsen & Toubro Limited recently signed a MoU to jointly set up, develop, manage and own captive independent power plants at suitable locations to meet future power requirements of Sail.

The scope of agreement also includes exploration of opportunities to own captive thermal coal blocks to cater to the power plant requirements.

The MoU is a precursor to JV Agreement between SAIL and L&T for the purpose of incorporation of JV company. Both the parties plan to enter into a JV agreement within 3 months from the date of signing of MoU.

The JV shall strive to identify or locate potential thermal coal blocks which will facilitate in identifying a suitable location for the power project. Both the companies shall jointly set up a 1600 MW Greenfield coal based captive/independent power plant using super critical technology. The companies will keep the option to further expand capacity by 800 Mw or 1600 MW at the same or some other location.

The agreement is a significant strategic intervention. The power requirement for the Sail plants is currently being met primarily through captive power plants, including those with JV companies. The balance requirement is met through distribution companies of the respective grids. Sail's power requirement is likely to increase from the present level of 950 MW to about 1826 MW by 2010 and 4066 MW by 2020.

Indian domestic steel price declines

The domestic steel prices in India yet again started falling in anticipation of price reduction by major producers from 1st Oct. The Long Product Price Index fell by 37 points whereas the steel price index fell by 19 points:

LPPI – Long Product Price Index
FPPI – Flat Product Price Index
ISPI – Indian Steel Price Index

Long products

Flat products

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SPS Group sets up steel plant in HP

FE reported that SPS Steel & Power, an arm of Kolkata based SPS Group, has set up a steel plant at the Mini Industrial Growth Centre at Gwalthai in Himachal Pradesh. The plant was inaugurated by Prem Kumar Dhumal, the chief minister of Himachal Pradesh.

With this new plant, the company aims to scale up its present production capacity of 1.6 million tonne per annum to 2 million tonne per annum by 2010.

Mr Bipin Kumar Vohra chairman & MD of SPS group told FE that “The total capital investment for this plant stands at around INR 125 crore and the working capital requirement is around INR 160 crore. We are funding the expansion through internal accruals and debt. Earlier we had planned to dilute about 10% of our equity but looking at the slump in the market we instead raised INR 200 crore by joining hands with Kolkata based Surekha group.”

He further added that “We are targeting a turnover of INR 6,000 crore by the end of the fiscal year 2010-11. Last year we registered a turnover of INR 3,500 crore. While setting up this facility we acquired another company called Suraj Fabrics Industries (Steel division). This new plant is spread over two plots of 8 acres and 16 acres with production capacity of 0.3 million tonne billets per annum and 0.26 million tonne of rolled products per annum.”

He added that “We have approached the Himachal government for acquiring additional 10 acres for setting up a unit for structurals and another two acres for providing housing facilities to our employees. The unit for structurals will cost us about INR 60 crore. We are also mulling over setting up a cement plant as well as a multi-specialty hospital in Himachal Pradesh.”

SPS Group already has steel plants at Durgapur in West Bengal and Jharsuguda in Orissa. But to cater to the needs of the northern regions SPS has commissioned this plant.

Indian Railways to levy busy season surcharge

It is reported that Indian Railways have decided to levy a busy season surcharge of 5% to 7% on transportation of all products. Under the decision, the transportation of goods on trains will be costlier by 5% to 7 % with effect from October 1st

According to a senior railway official, the imposition of busy season surcharge is an annual exercise and will remain in force from October to March 2009. While the levy of 5% is imposed on transportation of coal and coke, other products would be charged 7%.

Termed as dynamic pricing policy, the decision aims to overcome the effect of the recent fuel price increase. Diesel constitutes 17% of the railway’s total operating cost.

Following the diesel price hike in June this year, Railways had planned to hike freight charges for a host of commodities including ores and minerals, petro products, coke and coal, fertilizers and food grains by 5% to 7% by imposition of a special supplementary surcharge. However it had to rollback the special supplementary levy under pressure to keep in line with the government’s strategy of containing inflation.

Long products price remain stable in India

Kolkata

Change is on Sept 30th as compared to Sept 29th
Change is in INR per tonne

Mandi

Change is on Sept 30th as compared to Sept 29th
Change is in INR per tonne

Kanpur

Change is on Sept 30th as compared to Sept 29th
Change is in INR per tonne

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Graphite India to add capacity at Durgapur plant

BL reported that Graphite India Limited will expand graphite electrode capacity by 10,500 tonnes at a cost of INR 187.50 crore at its Durgapur plant.

Mr KK Bangur chairman of Graphite India Limited said that the expansion project would be complete within the next 18 to 24 months. He added that internal accruals will largely fund the project. Mr Bangu said that “We may also go in for short-term debts to part finance the project.”

Mr Bangu said that with a decent cash flow had sold some surplus property in Bangalore in 2006 for about INR 100 crore and invested the money in 3 year bonds which would mature next year. He said that “We do not need to draw on this fund.”

The expansion plan follows a surge in demand from the arc furnace steel sector locally and globally. Graphite India exports around 70% of its production. According to the management, the production of steel in the country is likely to go up by 4% points to 38% by 2010.

Graphite India Limited he company currently has a total electrode capacity of 78,000 tonnes, 60,000 tonnes in India and 18,000 tonnes in Germany.

In depth analysis of steel projects in India

What is important to take note of now, however, is that the Indian steel industry suddenly finds itself in a completely different context. In the world of steel, every player remains familiar with the cyclical nature of the growth. Therefore, the slowdown should not have surprised any in the industry. But, none really expected this to have happened so fast. The steel super cycle seems to have been ended abruptly or really?”

“India’s steel dream looks to be fading away” This is how we started our last year’s steel report. With the added uncertainty, the industry’s plans are in total disarray. There are no questions on the opportunities this country has offered in steel. From all points of view, these have been strong and credible ones.”

But the recent great years in steel have supported strong capacity growth in the steel industry in India. The more competitive Brownfield expansion projects have started delivering results and more are expected to come. What has been extraordinarily interesting to note in the past few years is the growth of very small to mid size capacities.

The Indian steel industry is in a peculiar fix. The capacity could not be raised immediately because of their own strategic problems. The limited capacity in the country and higher global prices provided to them all the opportunities to make sufficient money themselves and raise their credibility in the global capital market. However, an impulsive government, given the high political value attached to inflation in India, intervened in the steel business more than it needed to do.

Despite the fact that the capacity expansions in India have been of recent origin, a huge chunk of the existing capacity is technologically outdated or is uniquely backward.

It will be premature to write India’s steel ambition off despite all the bad news surrounding it currently.”

“Indian Steel Projects: Ground Reality, Strategic Issues and Opportunities” from Steel and Natural Resources Strategy Research analyses the context each significant producer is placed in and identifies their core problems. It makes an objective assessment of the strength and weakness of each of the major projects, when they are expected to be completed and at what cost.

It takes a macro view of the emerging steel supply scenario till 2021.

This 115 page report with 35 tables, 12 charts, a number of annexure, three maps and an appendix looks at the steel industry’s future in India from a strategic point of view to guide the investors in the industry, capital goods industry, steel traders, raw materials suppliers and the policy makers in the government in their own individual planning for the future.

Report Summary:
1. Published: Sep 2008
2. Format PDF File (Delivery by Email on receipt of payment)
3. Total no of pages – 115

Price: USD 1100 or INR 50,000
(Note: You can Save USD 100 if you order before October 15th 2008)
(Additional Charges would be levied for delivery of file on a CD or in printed form)
You can order your copy to reports@steelguru.com

Indian scrap and pencil ingot price update

The prices for input material showed overall decline with the sole exception of Mandi, owing to local factors.

Melting scrap
80:20
HMS

Change is on Sept 30th as compared to Sept 29th
Change is in INR per tonne

Sponge iron

Change is on Sept 30th as compared to Sept 29th
Change is in INR per tonne

Pencil ingot

Change is on Sept 30th as compared to Sept 29th
Change is in INR per tonne

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Ramsarup Industries joins Ramsarup Lohh Udyog

Ramsarup Industries announced that it has amalgamated with Ramsarup Lohh Udyog with effect from April 1st 2007. The high court at Calcutta has sanctioned this scheme of amalgamation on June 30th 2008.

The company manufactures wires and TMT bars and serves railways, housing, power, roads and bridges, water management, and defense sectors. It is one of the few manufacturers in India to provide the whole range of TMT products with size ranging from 8 millimeter to 40 millimeter. It has an installed capacity of 137,000 tonnes of wire drawing and 60,000 tonnes of galvanized wires per annum.

Power exchange to help bridge demand supply gap in India

BL reported that the electricity trading platform would help bridge the overall demand supply mismatch situation in the sector in India.

Mr Sushi Kumar Shinde Indian power minister while formally launching the Indian Energy Exchange said that “Initial volumes of trade on the exchange are very encouraging and this is going to provide a stronger signal to the power sector.”

He added that Indian Energy Exchange has witnessed over a 2 fold increase in purchase bids since it began operations on June 27 with bids surging from slightly over 13,000 MW to upwards of 30,000 MW as on July 15th.

He said that “The establishment of the exchange is necessary for meeting the demand and supply gap of electricity that exists in the country adding that IEX placed the Indian power market at par with the most sophisticated exchanges in the world.”

Mr Shinde said that “The technology comes from an alliance between Financial Technologies Limited and OMX Technology of Sweden, the technology provider to the world’s leading power exchange, NORDPOOL which I believe is the most efficient power exchange in the world and also the most liquid in Europe.”

Besides Financial Technologies, the bourse has PTC India Limited, Infrastructure Development Finance Company, Adani Enterprises, Reliance Energy, Lanco Infratech, Rural Electrification Corporation and TATA Power as its stakeholders. Financial Technologies has a 90% share in IEX while the remaining is shared by the others.

Ludhiana Electroplaters Association holds 42nd AGM

Express News Service reported that the 42nd annual general meeting of the city electroplaters was held under Mr Joginder Kumar chairmanship and president of the Ludhiana Electroplaters Association.

Mr Chander Parkash Sabharwal general secretary of Association read out the minutes of the meeting while Mr Sukhdev Raj Sethi cashier of the association placed before the members accounts during the period April 2007 to March 2008 along with the balance sheet which was unanimously approved by the House.

Mr Joginder Kumar apprised the members that a cluster had been approved by the Central government. He said that the state government had directed PSIEC to set up new focal points for electroplating industry at Ladhowal.

He said that a deputation had a meeting with PS Bhide, revenue secretary last week in Delhi regarding the long pending issue of levy of service tax on electroplating and zinc plating under business auxiliary service.

Developed world crisis could spread to rest of world- PM

Mr Manmohan Singh PM of India in a French newspaper interview said that the financial crisis in developed countries could spill over to the rest of the world.

Mr Singh told 'Le Figaro' newspaper that Indian exports could be hit if the crisis caused a recession in the world's largest economies.

Mr Singh said that “Even though the crisis is only affecting developing countries at the moment, it could extend to the rest of the world. He said that if the financial crisis starts a recession in the main economies that would compromise our exports.”

He said that India and China were important players in the world economy but alone could not pull the world economy out of its troubled period. He added that “The main responsibility is with the developed countries, but India and China can play a part in the solution.”

SJVNL to set up two power projects in Bhutan

It is reported that Satluj Jal Vidyut Nigam is planning to set up 2 power projects 900 MW Wangchu and 486 MW Kholangchu in Bhutan for which an agreement have already been signed between the company and the central government.

As per report, the DPR for these two projects is under process and is likely to be completed by end 2009 and end 2010 respectively.

SCI likely to get Navratna status

BL reported that Shipping Corporation of India is likely to get the coveted status of Navratna companies in the country.

Sources said that SCI which at present has the status of being a mini Navratna company has been cleared by the apex committee on Navratna PSUs for inclusion in the list which is likely to be unveiled in the next few weeks.

The sources added that apart from SCI, the apex committee on Navratna PSUs which met last week has also cleared the name of Oil India. However the names of the 2 companies will still have to be cleared by different ministries in the Government, a process which is likely to take 3 weeks to a month.

For SCI graduating from a mini Navratna to a Navratna company will give it the required fuel to speed up its ambitious ship acquisition program lined up for the next 4 years. The up gradation in status will give it additional room to order ships without having to go through the cumbersome process of having to get the prior approval of the Government.

The source further added that “SCI complies with all the criteria required for gaining Navratna status. Right now, it has a mini Navratna status which gives autonomy to its board to take decisions that involve an expenditure of less than INR 500 crore. We cannot even acquire a VLCC with this money.”

About two years ago, SCI had unveiled a capital expenditure program of INR 15,000 crore for acquisition of 72 vessels up to 2011 this also includes replacement of some of its older vessels. Out of this, it has already spent close to INR 7,000 crore to buy 28 vessels in the last 5 years. The balance 44 vessels will be acquired during the next 3 years with 4 of them scheduled to join the SCI fleet within a month.

Kerala government frames SEZ policy

BL reported that Kerala government has come out with a policy setting the norms and regulations for establishing special economic zones in the State.

The policy, announced by Mr VS Achuthanandan CM of Kerala at the media briefing after a cabinet meeting, is binding on all SEZs that have been approved by the Centre and those seeking approval in future.

Mr Achuthanandan said that the population density in Kerala is higher than in other States which made SEZs needing large tracts of land non feasible in the state. The approval for SEZs will be given only after taking this fact into account.

As per report, the government will not allow filling up of paddy fields for purpose of setting up the zones. Also, private investors will not be permitted to acquire land for the zones, but can apply for space in the land being acquired by government agencies for setting up industrial parks.

It said that SEZs will not be exempted from paying electricity duty. Also, labor and trade union laws, Provident Fund laws, Factories Act and Gratuity Act, among others, will be applicable to SEZs.

The condition in the Central policy that the zones will be exempted from Chapter 5B of the Industrial Disputes Act will not be applicable to the zones in the State. The policy stipulates that 70% of the land earmarked for SEZs should be utilized for industrial purpose, while the remaining land can be used for allied facilities such as residential apartments, hotels, recreation space and roads.

The report added that the residential apartments should be exclusively for employees in the zones and not be sold to outsiders. The zones will come under the Panchayat Raj Act and nobody will be given exemption from Section 200 of the Act. The Single Window Clearance Act will be applicable to the zones.

Golden Peacock Award for NTPC

It is reported that NTPC Limited has been adjudged the winner of Golden Peacock Award for Excellence in Corporate Governance for the year 2008 by the Golden Peacock Awards Jury under Mr PN Bhagwati chairmanship of Justice, former Chief Justice of India and Member UN Human Rights Commission.

Nano delays to hit auto component makers - Report

BL reported that domestic auto parts suppliers banking on volumes from the production of the Nano to mitigate the impact of the slowdown in the domestic and global auto industry.

Suppliers said that the orders would be delayed by at least 2 to 3 months considering that Nano volumes may take a longer time to take off and due to capacity constraints in the backdrop of the Singur controversy. The volume is expected to be around 50% lower than anticipated.

One of the suppliers for the Nano project said that “This year, launches are getting delayed. With Nano volumes also likely to take a longer time to take off, our business could be impacted by 10% this year.”

Minda industries which make diversified auto components also said that while launches would be on time there could be some delay in its volumes. Mr NK Minda chairman of Minda Industries Limited said that “Margins are under pressure. It may take 2 to 3 months more before volumes pick up.”

According to Amtek Auto, the macro economic scenario is such that domestic and global auto makers would wait for a more strategic time to launch their models so that they can reap the maximum benefit. Mr Santosh Singhi CFO of Amtek Auto said that “With steel prices softening, pressure on margins could ease. But all calculations are going wrong for most suppliers. In the overseas market too with car sales at an all time low, foreign companies are deliberately delaying new launches to ensure that the situation has cooled off before they pan out their plans.”

In case of Rico Auto which has its business almost equally divided between 2 wheelers and 4 wheelers, it would prefer to wait and watch till the next month before it estimates its business outlook for the year. Mr Arvind Kapur MD of Rico Auto said that “The market is tight. We will wait till mid October to see what the order book for this year looks like. Currently with 40% to 45% of our business being in 2 wheelers and exports comprising smaller capacity engines, we are so far ok.”

BHEL bags INR 990 crore contract from RRVUNL

It is reported that Bharat Heavy Electricals bagged an order worth INR 990 crore from Rajasthan Rajya Vidyut Utpadan Nigam for setting up a 500 MW Chhabra thermal based power unit Phase-II in Baran district of Rajasthan.

BHEL's scope of work in the present contract envisages design, engineering, manufacture, supply, erection and commissioning of steam generators and steam turbine generators and associated auxiliaries with state of the art controls and instrumentation system. The equipment for the project shall be supplied by BHEL's Haridwar, Trichy, Ranipet and Bangalore plants while BHEL's power sector Northern Region will undertake erection and commissioning of the equipment.

Jaisu bags capital dredging contract at Kochi

BL reported that the Kandla based Jaisu Shipping Company has bagged the capital dredging contract at Kochi port to deepen and widen the channels for the Vallarpadam project. The contract will also combine the maintenance dredging in the port channel for the next 2 years.

However the award of the work would be subject to the approval of the Shipping Ministry as the clearance of the Cabinet Committee on Economic Affairs and the Government sanction for capital dredging projects are yet to be received. Highly placed sources in the port said that “We have been taking every possible step to save time to meet the contractual obligation with the DP World.”

The sources said that Jaisu Shipping had quoted well within the estimated cost for the capital dredging. However the prices quoted by the firm for the third year maintenance dredging happened to be exorbitantly high taking the overall quote to INR 544 crore for the entire work which would be 14.86% higher than the indicated cost. The sources added that the port therefore mulling the possibility of not awarding the third year maintenance contract which would mean that the contract include only the capital dredging and first 2 years of maintenance dredging, thus keeping the prices near the estimated levels.

The capital dredging to deepen the channels for 14.5 meters of draught and maintenance dredging that coincides with the period of capital dredging had to be combined because of the physical inseparability of the works. It was also decided to include the maintenance dredging for a subsequent period of one year so that the contractor who carry out the capital dredging could be made responsible for maintaining the depth for the next 1 year, considering the uncertainties of siltation that the port channels are prone to immediately after the deepening.

Kerala to spend INR 10,000 crore for road development

It is reported that Kerala government is planning to spend about INR 10,000 crore for road development in Kerala in the coming years.

The tendering process is likely to begin soon. The state government has handed over at least 60% of land in a project area.

Under the development plan around 851 kilometer roads in Kerala will be developed into international standards by spending INR 5 crore to INR 6 crore per kilometer. 55 works of National Highway were in progress of which 30 will be completed by March 2009.

Haldia docks facing problems as water level falls

IANS reported that the Haldia docks may face severe problems in the coming winter starting this November as the depth of water in the Hooghly River has gone down since August.

The official said that this has forced authorities at Kolkata port under which the Haldia docks fall to send emergency requests to the Dredging Corp of India Limited and the shipping ministry to arrange for more dredgers.

Mr AK Chanda chairman of Kolkata Port Trust said that “An emergency meeting has been called with the shipping secretary to apprise the ministry of this impending crisis.”

Mr Chanda said that “A request has been made to provide one dredger by October and another by the middle of November to the DCI so that dredging is carried out on an emergency basis during the winter. An agreement has been reached with DCI to charter a foreign dredger for a 2 year period, the financial terms of which have already been decided upon.”

Mr AK Bagchi director of Kolkata port’s said that the draught water depth required by vessels to move of the Hoogly River has dropped to 3.9 meter at Jellingham Channel and 4.4 meter at Auckland Channel. The minimum level required by these two key points in the river are 5 meters and 5.5 meters respectively.

The river regulatory measure a comprehensive package of measures to improve navigability of the Hooghly River at INR 9.36 billion is yet to be cleared by the central government.

New rule results in withdrawal of bids for highway projects

BL reported that National Highways Authority of India project to widen Rimuli-Roxy-Rajamunda stretch all the 6 short listed bidders have opted out where as from the Chandikhole-Dubari-Talcher project 5 of the 6 short listed bidders have withdrawn.

As per report, this is due to a rule recently introduced by the Ministry of Road Transport and Highways that bars companies from bidding if they have been short listed in the technical qualification stage for 8 projects during a 2 month period or if they have won four projects during the specified period.

The report added that this is because companies have started withdrawing their bids from several projects which they consider relatively unattractive.

In 7 such projects, 4 short listed bidders have stepped back. The projects are widening of selected stretches between Ghaziabad-Aligarh, Amritsar-Pathankot, Tirupati-Tiruthani-Chennai, Jaipur-Reengus, Panikoili-Rimuli, Muzaffarnagar-Haridwar-Dehradun and Rohtak-Hissar.

The Road Ministry had directed NHAI to add this clause in the request for proposal for 53 NHAI projects, bids for which are under process when it faced severe opposition to the controversial competition limiting clause in the request for qualification stage. Incidentally, the Finance Ministry has now decided to delete the competition limiting clause for all highways projects prospectively.

So, bidding for 60 projects will continue as per the RFQ with the competition limiting clause and the new RFP rule. With this, out of 16 projects for which NHAI has invited the RFPs or financial bids, nine have now been affected on account of bid withdrawals.

BMRC to float INR 728 crore tender

It is repotted that Bangalore Metro Rail Corporation will float tenders by October 2008 for electrical traction system of 33 kilometer East- West and North - South rail corridors estimated at INR 728 crore.

By March 2009, BMRC is expected to spend INR 1211.54 crore towards land acquisition, utility shifting, afforestation, constructing the ducts and stations, traction, civil works etc. Three foreign consultants from France, US and Japan have begun their work to oversee the construction and implementation of the project.

The entire 33 kilometer phase one of metro network is scheduled to become operational by 2012. On completion of first phase, Bangalore Metro would be able to handle 40,000 passengers per hour. On any working day, the Bangalore Metro is being designed to handle 1.02 million people.

BMRC will also float tenders for constructing the MG Road and Trinity circle stations with an investment of Rs.16.5 crore each. For eight other stations including Tollgate, Hosahalli, Vijayanagara, Yeshwanthpura, Soap factory, Mahalakshmi, RV Road terminal and Jayanagar tendering has already been given approval.

Ambuja Cements to invest INR 1,600 crore in captive power

Press Trust of India reported that Ambuja Cements plans to invest nearly INR 1,600 crore in the captive power generation which would have a capacity of 200 MW by 2010.

A company official said that “We plan 200 MW electricity generation capacity from our captive power plants in 3 years time. He added that we hope to have captive power plants attached to all our manufacturing units across the country.”

Ambuja Cements has 11 cement plants out of which 4 units have captive power plants attached to them including the one at Ropar in Punjab. The multi biomass co fired captive power plant of Ambuja cement at Ropar has developed a technology to operate on coal and a wide variety of biomass that reduces carbon dioxide emissions significantly.

The 30 MW captive power plant at Ropar which was commissioned in 2004 uses agricultural waste for power generation. The power plant can operate 100% on biomass and can produce 30 MW of power which completely fulfills the total electricity needs of the cement plant.

West Bengal CM and TATA talks to be held on Friday

It is reported that Mr Buddhadeb Bhattacharjee CM of West Bengal is scheduled to hold talks with Mr Ratan Tata chairman of TATA Group on Friday to discuss the future of the TATA Motors project at Singur.

Mr Bhattacharjee while addressing a press conference at the end of an all party meeting where a resolution was adopted requesting the TATA Motors and the ancillary industries to resume work at Singur as soon as possible. Mr Bhattacharjee said that “The project’s future does not depend only on the assurances of the State government for, there are various stakeholders involved. But there is no lacking in the sincerity of our efforts to ensure that work at the project site is resumed.”

He said that the resolution also focussed on the need to implement rehabilitation and compensation packages for the affected farmers as well as take initiatives for the development of the area.

The Tata Motors announced suspension of work on September 2 in view of continued confrontation and agitation at the site. This came in the wake of the “satyagraha” outside the project area by the Trinamool Congress from August 24 in support of its demand that 400 acres of land acquired for the project be returned to farmers who had not received compensation for their plots.

TATA Steel official lays stress on safety as a behavioural issue

Mr Manoranjan Prasad TATA Steel head (safety) at a seminar on occupational health & safety in Jharkhand said that organisations that are not able to bring about a change in their people's behaviour towards safety practices are liable to face stringent compensation laws, like the recently enacted Corporate Manslaughter & Corporate Homicide Act 2007 in the UK and similar acts in some European countries.

Mr Prasad spoke on the importance of behavioural safety as a tool to manage people. He said the manslaughter & homicide Act, under which companies and other organisations can be prosecuted for failure to manage health and safety with fatal consequences, could soon be a reality in this country too.

He laid stress on safety as a behavioural issue that could not be put off. He said all injuries were preventable provided each person in the organisation behaved responsibly.

He said that it would be wise to implement safety practices in the workplace rather than pay huge compensation for fatal accidents, as recommended in the Corporate Manslaughter & Corporate Homicide Act. He added that the new European act was created to deal with very serious management failures.

Mr Prasad said that the offence is now considerably wider in scope than overcoming the two problems of common law that of identification and aggregation in relation to incorporated bodies, and it now includes liability for organizations which could not previously be prosecuted for manslaughter.

Thermal power plant to come up in Rajasthan

Project Today reported that Rajasthan government is planning to set up 1,320 MW thermal power plant on the banks of the Mahi river in Banswara district of Rajasthan.

As per report, the proposed plant in Banswara will be a coal based power station. The plant location is within 80 kilometer of Ratlam railway station in neighbouring Madhya Pradesh which will facilitate transportation of coal from western or south-eastern coalfields.

Banswara presently has only one power plant in the hydel sector which generates 140 MW. There are also plans to expand the capacity of the Suratgarh Super Thermal Power Plant by another 500 MW.

Villagers boycott public hearing of Lanco power plant

Statesman News Service reported that the first ever public hearing of the proposed Lanco power plant has reportedly failed to garner support with locals boycotting the meeting and demonstrating in front of the venue recently.

As per report the Lanco Baabandh power private Limited proposes to set up two plants at Kurunti and Khadakprasad and notices for the same had been issued by the concerned authorities. The villagers however alleged that the notices were not served in the proper manner and many of them were ignorant of such meeting till it started.

An irate villager explaining their absence from the meeting that “Holding a meeting suddenly will not solve the issue. The administration should have informed us earlier and taken our feedback.”

As per report, hundreds of villagers demonstrated in front of the venue and alleged that setting up of the plants would contribute only in raising the pollution level in the region.

A Protestor said that “There are many industries here and they hardly take any steps to preserve the environment. Besides the ecological balance of the river Brahmani may also get affected since it flows close to the proposed site,” alleging that the company has demanded the land near to the river.

Dredging Corporation declares 150% dividend

BL reported that the Dredging Corporation of India has declared dividend of 150% for the third time including interim dividend of 75% paid in March for 2007-08 involving an amount of INR 42 crore.

The release said that the dividend was declared at the annual general meeting in New Delhi. A sum of INR 15.50 crore was transferred to the general reserve during the year.

During the year, the DCI recorded a turnover of INR 771.47 crore compared to INR 626.21 crore during the previous year. It included operational income of INR 705.32 crore against INR 572.89 crore for the previous year. The profit before tax was INR 150.77 crore against INR 206.39 crore in the past. The net profit for the year was INR 154.82 crore against INR 188.73 crore in the previous year. The earnings per share for 2007-08 was INR 55.29 compared to INR 67.40.

The release added that the dredging capacity available with the DCI as on March 31st was 798.50 million cubic meters. During the year, the quantity dredged under various contracts was 677.30 million cubic meters, 84.82% YoY of the capacity as compared to 95.65% YoY during the previous year.

GVK Power Q1 net triples

BL reported that GVK Power & Infrastructure Limited recorded a total income of INR 141.37 crore with profit of INR 40.55 crore for the Q1 ended June 30th 2008 as against an income of INR 101.83 crore and profit of INR 13.17 crore for the corresponding quarter last year. This reflects a growth of 39% in revenues and more than 3 fold rise in profit over corresponding quarter last year.

During the quarter the company acquired the entire equity share of GVK Energy and GVK Development Projects both of which have become wholly owned subsidiaries.

Dynamatic Tech acquires 12 MW wind farm

Reuter reported that Dynamatic Technologies has acquired a 12 MW wind farm from Tamilnadu Petro products Limited.

It said that the wind farm will generate around 18 million units of power annually and help reduce monthly energy costs by 85 at its Chennai complex.

Ashok Leyland inks JV with John Deere

BS reported that Ashok Leyland has signed a JV agreement with John Deere for manufacturing and marketing of construction equipment's.

According to a release sent by Ashok Leyland to the Bombay Stock Exchange, the JV will seek to commence production by early 2010 and will initially roll out backhoes and four wheel drive loaders. The range will subsequently be expanded to include a full line of construction equipment. Its products will also be exported to markets of both the respective players internationally.

The 50:50 JV will bring together Ashok Leyland's expertise in the automotive sector, it's marketing and distribution strength and John Deere's technical know how and experience in the construction equipment business. The JV is will set up a facility in India and is currently evaluating site locations.

John Deere is one of the world's leading providers of products in the agriculture and construction sector.

Pipavav Shipyard studying IPO plan

BL reported that Pipavav Shipyard promoted by SKIL Infrastructure is having second thoughts on going ahead with its proposed USD 150 million IPO in the wake of the recent tremors on Wall Street that continues to rattle global and Indian markets.

As per report, Pipavav Shipyard in which Punj Lloyd holds about 24% stake will be studying the market situation for the next three months before taking a final call on its IPO plans.

Mr Ray Stewart CEO of Pipavav Shipyard said that “We have not yet shelved our IPO plans, but we are studying the market movements closely. If we go ahead with the IPO, it will happen in the next three months.”

Mr Stewart said that in the event of the company not taking up its IPO plans immediately it will consider other alternatives to raise the money. Without elaborating on the other options, he also indicated that there were many investors, both global and Indian, who were willing to invest in the company.

The report added that its present private equity investors include 2i Capital PCC, New York Life Investment Management India Fund, Merrill Lynch International, Deutsche Bank AG and ABN-Amro Asia Merchant Bank.

The company plans to invest part of the funds to finance its expansion program that will involve building of more sophisticated and bigger ships. Currently the shipyard which became operational recently builds bulk carriers with an order book of 22 ships involving a cost of about USD 1 billion.

Areva T&D and GE in pact for electrical solutions

Areva T&D India and GE Consumer and Industrial India announced a strategic alliance to focus on turnkey electrical solutions.

An official statement said that the alliance would focus on turnkey electrical solutions in the power generation, metals, mining, minerals and materials handling markets. The objective of this alliance is to provide 1 stop solution for customer needs such as power distribution, control and automation.

Mr Rathin Basu president and MD of Areva T&D India Country said that “To this alliance, GE brings low voltage and light products’ expertise while Areva T&D brings proven expertise in the complete range of high and medium voltage products and systems.”

DLW, RCF and RWF exceed production target during April to August 2008

Chitranjan Locomotive Works produced 66 electric locomotives against the target of 66 electronic locomotives and Diesel Locomotive Works produced 102 diesel locomotives against the target of 100 diesel locomotives during April to August 2008.

Rail Coach Factory produced 680 coaches against the target of 656 coaches where as Integral Coach Factory produced 455 coaches against the targets of 461 coaches during the same period. Rail Wheel Factory produced 79068 wheels and 34882 axles during the same period against the target of 76344 wheels and 29296 axles during April-August 2008.

During the month of August 2008, CLW, DLW, ICF, RCF and RWF have produced 17 electric locomotives, 15 diesel locomotive, 129 coaches, 132 coaches, 16791 wheels and 7348 axles respectively against the target of 17 electric locomotives, 21 diesel locomotive, 119 coaches, 130 coaches, 15334 wheels and 5817 axels.

The punctuality percentage of mail/express trains was 93.4% in Broad Gauge and 99.2% in Metre Gauge during the month of August 2008 compared to 93.6% and 99.5% respectively during the same period last year.

ArcelorMittal South Africa to reduce steel prices

Bloomberg reported that ArcelorMittal South Africa will cut prices for the second time this year, reducing key long and flat products by an average 10% as global demand weakens.

ArcelorMittal South Africa in a letter to customers said that “The base price will fall by ZAR 1,000 (USD 120) per tonne from November 1st 2008.”

Mr Sven Lunsche, a spokesman for the company, said by phone from Vanderbijlpark that “There's obviously a softening in demand globally, particularly in consumer orientated industries that affect us, such as automotive and appliances.”

Mr Lunsche said “In South Africa, there is still a bit of a stop-gap as a result of the vast infrastructure spending.”

Global steel price down by 10% since July 2008 - MEPS

UK based MEPS said that "In the US, underlying demand from the manufacturing and building industries is weak. Customers started to hold back from placing orders in August, expecting transaction prices to erode. Certainly, some decreases were noted during that month and the majority of steelmakers rescinded the rises announced earlier for September deliveries. More recently, as scrap costs have dropped, steel transaction values have fallen quite rapidly. Meanwhile, there is little competition from imports whilst domestic mills are benefiting from a rise in export business."

It added that "Canadian transaction values fell during August and again in early September. Buyers are being very cautious and it is likely that this slowdown in demand will cause further price erosion through the rest of this month and into October. Scrap costs are also down and expected to drop even more. Domestic mill order books are weak. Sales are sluggish due to extended automotive shutdowns and a declining manufacturing base. For now, there are no signs of growing import volumes and the material available is very similarly priced to the local product."

MEPS said that in China, the price trend turned quite negative over the summer. Steelmakers have started to cut production to try to stem the fall. Overall, market sentiment has weakened as customers worry about future growth prospects. Steel orders from manufacturing and exports continue to be high in Japan. However, dealers' shipments remain slow due to poor building demand. Nevertheless, inventories of strip mill products held by domestic mills and distributors, at end July 2008, moved down by 0.5% as compared to June 2008. Quayside stocks of imported flat products fell by 9.9% in the same time frame. Domestic supply is expected to tighten towards the end of the year when Nippon Steel will start to build stocks ahead of the blast furnace reline at its Oita works."

South Korea's POSCO has said that there are no plans to change prices for the final quarter 2008. In Taiwan, CSC has released its domestic price list for period four. Inline with market expectations, the company raised values by an average of TWD 1170 per tonne. Meanwhile, the market has weakened over the summer and our current figures are below those reported in July 2008. However, supply is expected to remain restricted in the final trimester as maintenance will be carried out on blast furnaces in China, Japan and South Korea during that period.

MEPS said that "Although producers gained some small price advances for third quarter business in Poland, strip mill product sales fell during August due to bloated inventories. Demand has also been slow in early September. The strong zloty is starting to hurt the Polish export sector. In the Czech Slovak markets, manufacturers are coping so far with the problems of strong currencies, high energy prices and escalating raw material costs. Steel supply remains tight with stocks at minimum levels."

It further added that "In Western Europe, there has been very little movement in strip mill prices since July. However, demand over the holiday period was slower than normal for that time of year because of the poor economic climate. Most companies have sufficient inventories for the near term and are in no rush to conclude new business. The mills are likely to reduce capacity rather than chase orders for the fourth quarter by lowering prices. So far, there is no evidence of severe downward pressure from third country imports."

Nippon Steel may form an alliance with Topy Industries

Reuters reported that Nippon Steel Corporation will hold a joint briefing with electric furnace steel manufacturer Topy Industries Limited on an alliance.

BlueScope Steel to close VP Buildings operations in Kernersville

It is reported that BlueScope Steel North America Corp. is closing its VP Buildings manufacturing operations in Kernersville in December, eliminating 175 jobs. BlueScope Steel is the parent company of VP Buildings.

VP Buildings, which manufactures pre engineered steel buildings, took the action after it analyzed its manufacturing capacity and market conditions.

A statement from the company said its decision to close the Kernersville plant is part of an overall strategy to enhance the company's geographic presence, establish expanded manufacturing and service operations and support its multi brand strategy.

VP Buildings said it will help its employees find other jobs. The existing engineering and customer service teams, comprised of more than 100 employees, will remain in Kernersville.

Toyota working with steelmakers to cut costs - Report

Nikkei reported that Toyota Motor Corp is working with five domestic steelmakers to find ways to cut steel procurement costs as costs for raw materials rise and sales slow.

Nikkei said the measures would likely involve using more low-cost plate, reducing the number of product types and unifying specifications.

The Nikkei report said that if all those measures were implemented, it would cut production costs by 3% at the steelmakers.

According to the report, Toyota solicited cost saving ideas from Nippon Steel Corp, JFE Steep Corp, Sumitomo Metal Industries Ltd, Kobe Steel Ltd and Nisshin Steel Co this past spring. It said that Toyota has determined that about 100 proposals could be carried out and three would be put into practice from October.

Indonesian steel imports to jump in 2008

It is reported that Indonesian imports of steel products are expected to jump by six fold in 2008 while steelmakers try to accumulate high stock levels to resist the high cost of raw materials.

Besides, imports of slab and billet approached 6 million tonnes in the first 6 months, compared with 2 million tonnes during the same period in the previous year.

Steel prices have recently been slowly retreating due to slow demand since beginning of 2008, when prices of raw materials, including iron ore and coking coal, were hiked around the globe.

Japanese steel demand in Q4 to rise by 2.5% YoY

Ministry of economy, trade & industry said that Japanese steel demand will increase by 2.5% YoY to 27.31 million tonnes in October to December 2008 period from same period of 2007.

The demand represents 30.34 million tonnes of raw steel output, which is 1.7% lower than same period of 2007 due to 290,000 tonnes of inventory liquidation under higher stock for sheet steel. The demand increases marginally for construction along with firm demand for manufacturers including automobile, shipbuilding and industrial machinery.

POSCO to sell Pos Plaza to secure cash flow

It is reported that POSCO has decided to sell Pos Plaza commercial skyscraper to a UK based fund company. The price of the building is reported to be over USD 400 million.

POSCO has denied the speculation that it wants to secure the cash needed to acquire Daewoo Shipbuilding and Marine Engineering from the government and said that it is only for securing cash flow.

Pos Plaza was constructed by POSCO in 1999 with an investment of USD 150 million, it stands four floors underground and 34 floors above the ground, and it houses a number of Korean financial companies like the Korea Development Bank, Woori Bank and Daegu Bank.

US weekly raw steel production down by 3% YoY

American Iron & Steel Industries reported that in the week ending September 27th 2008, US’s raw steel production was 1.986 million tons while the capability utilization rate was 83.2%. Production was 2.047 million tons in the week ending September 27th 2007, while the capability utilization then was 86.5%. The current week production represents a 3% YoY decrease from the same period in 2007.

Production for the week ending September 27th 2008 is down by 2.1% WoW from the previous week ending September 20th 2008 when production was 2.027 million tons and the rate of capability utilization was 85%.

Adjusted YTD production through September 27th 2008 was 81.606 million tons, at a capability utilization rate of 88.3%. That is a 2.2% YoY increase from the 79.900 million tons during the same period last year, when the capability utilization rate was 86.1%.

District wise production for the week ending September 27th 2008
1. Northeast Coast: 187,000
2. Pittsburgh/Youngstown: 175,000
3. Lake Erie: 90,000
4. Detroit: 76,000
5. Indiana/Chicago: 480,000
6. Midwest: 265,000
7. Southern: 630,000
8. Western: 83,000
(In net tons)

AISI’s estimate is based on reports from companies representing about 75% of the US’s raw steel capability and includes revisions for previous months.

Directory of Refractory Makers in India

'Directory of Refractory Makers in India' in India is one of the top sources of information available on a refractory makers in India. It is one of the most comprehensive and accurate directory of refractory makers in India that ever published. This powerful directory is your connection to the entire refractory companies in India.

Gerdau sales in North American could fall by 15% - Report

BNamericas reported that, as signals foretelling a recession in the US grow ever stronger, Brazilian brokerage Brascan Corretora said in a report that steelmaker Gerdau's North American sales could fall 15% below those in this year's second quarter for at least two or three quarters to come.

But despite the ominous signals, Brascan said that it considered Gerdau's outlook strong overall and that even if North America falls into a deep recession, the steelmaker would remain stable. It added that "The data referring to the second quarter of 2008 for North American operations is impressive."

The brokerage highlighted a 5% QoQ increase in Gerdau's 2Q08 North American sales and a 21% rise in EBITDA margin as evidence the company will remain stable in the continent.

Gerdau is the largest steelmaker in the Americas and apart from Brazil and the US, it has operations in Argentina, Canada, Chile, Colombia, the Dominican Republic, India, Mexico, Peru, Spain, Uruguay and Venezuela. It produced 5.1 million tonnes of steel in the first quarter 2008.

Ausmelt suspended operations as zinc price falls

Ausmelt is suspending work at its smelter at Whyalla in South Australia after just 3 months of operation due to a significant decline in zinc prices.

Mr Paul Abbott MD of Ausmelt said that rise in the coal price has also contributed to the decision, as it is the major fuel used there.

The plant will be maintained with hopes of resuming. There are 30 employees at the site.

Saturn Machine to invest USD 2.4 million for expansion

It is reported that Saturn Machine & Welding Company will invest USD 2.4 million to expand its facility in Kentucky. The project will add about 18,000 square feet and result in 25 new jobs over the next 2 years.

Mr Charles Lynch president of Saturn said that "We need to expand in order to show our customers we are capable of handling any workload that is sent our way. The steel industry in the United States looks like its starting to boom again. We are expanding to meet our customer’s needs."

The addition, a high bay building, will give Saturn more space to fabricate large pieces of equipment. Groundbreaking is expected in October and the project should be complete by February 2009.

The Kentucky Economic Development Finance Authority recently gave preliminary approval of a USD 600,000 tax credit for the project. It will invest USD 2 million in construction and USD 400,000 in equipment. Saturn’s current roster includes 52 workers.

Saturn manufactures equipment for the steel industry such as coke oven doors, jamb cleaner, door machines and charge cars. It has about 90,000 square feet in Sturgis, which includes a 15,000 square foot addition currently under construction.

Kobe Steel raises annual profit forecast by 10%

Reuters reported that Japan's Kobe Steel Limited has lifted its annual group net profit forecast by 10%, thanks to a drop in crude oil and metal prices, as well as a continued strong demand for high grade steel products.

Kobe Steel said that it now expected a group net profit of JPY 75 billion in the current business year to March, instead of a JPY 68 billion profit expected earlier. Group sales were seen reaching JPY 2.48 trillion from originally planned group sales of JPY 2.46 trillion.

In the previous year ended March 31st 2008, Kobe Steel logged a group net profit of JPY 88.9 billion on sales of JPY 2.13 trillion.

Directory of Autoparts Makers in India

'Directory of Autoparts Makers in India' is one of the top sources of information available on auto part makers in India. It is one of the most comprehensive and accurate directory of auto part makers in India.

Published in May 2008, 'Directory of Autoparts Makers in India' has been comprehensively researched and prepared, to bring you a fully up to date guide to Indian auto part makers. This report will be extremely useful to businesses that deal specifically with companies in auto part makers segment.

Whether you are a product manager, in charge of marketing, raw material seller, in equipment business or simply interested to remain in touch with the latest developments in the Indian auto part makers, this directory will save you time and effort in finding the information you need.

This report will enable you to profile auto part makers in India, build new business prospects, generate new customers, discover who your competitors are and make vital contacts. You would save the time, money and effort of doing your own research. This directory has been especially compiled to assist with market research, strategic planning, as well as contacting prospective clients or suppliers.

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This report covers name and product details of 431 of Indian auto part makers in alphabetical as well as location wise order.

Look at the information you'll get in the 'Directory of Autoparts Makers in India'

• Company name -431 entries
• Address-431 entries
• Phone number-431 entries
• Fax number -418 entries
• Email -403 entries

Report Summary:
1. Published: May 2008
2. Format PDF File (Delivery by Email on receipt of payment)
3. Total no of pages – 241

Price: USD 625 or equivalent in INR
(Additional Charges would be levied for delivery of file on a CD or in printed form)

You can order your copy to reports@steelguru.com

Nippon Mining to start metal recycling plant in November

Nippon Mining & Metals has announced that it will start commercial operation for first phase of recycling plant, Hitachi Metal Recycling Complex in Ibaraki in November 2008.

The plant recovers antimony, bismuth, tin and nickel from recycled materials at the subsidiary, Nikko Environmental Service in Ibaraki and intermediate product at Saganoseki Smelter & Refinery in Oita.

Nippon Mining & Metals completes construction of the third phase facility by March 2009

Siemens expands portfolio for aluminum CR mills

Siemens VAI Metals Technologies announced that it is adding the Siroll Alusix six-high roll stand to its range of products. Compared to conventional four-high stands, this type of stand has a wider control range. This ensures flexible rolling scheduling and thus increased productivity, especially in cases where there are frequent changes in widths or products. Offsetting and bending of the work and intermediate rolls provide additional control options.

The release added that “In conjunction with the automatic flatness control system from Siemens VAI, this helps to improve the flatness of the rolled material. In the case of Siroll Alusix,roll grinding is simplified as all rolls are ground parallel. It is therefore not necessary to prepare and store rolls with different crowns and re grinding is made considerably easier.”

The new six high roll stand is equipped with long stroke cylinders for setting the intermediate rolls. As a result, the position of the intermediate rolls can be flexibly adapted to the width of the material to be rolled. The work rolls and intermediate rolls feature positive and negative roll bending, which is carried out by means of separate cylinders. This ensures a flowing transition between positive and negative bending and avoids the need to make sudden changes for compensation. The hydraulic roll gap control function and an automatic flatness control system provide for optimum interaction of roll bending and offsetting. Compared to four high roll stands, Siroll Alusix has a considerably wider control range with improved shape correction. The plant operator is free from almost any restrictions when it comes to scheduling the rolling process: frequent changes to widths or products can be made without having to retool the stand. The Siroll ISV spraying system is used for precise zone cooling and optimum lubrication of the rollers. Edge cooling is carried out with the help of the Siroll hot edge spraying system.

Siroll Alusix also offers a whole series of advantages, even during ongoing plant operation. Whereas four-high stands require the use of rolls with different crowns, grinding is simplified as all rolls are ground parallel. It is therefore not necessary to prepare and store rolls with different crowns and re grinding is made considerably easier. In addition, Siroll Alusix dispenses with the need for flexible hydraulic connections to the work roll chocks. This facilitates fast and efficient roll change and avoids leaks at the connecting points.

Siemens VAI is adding Siroll Alusix to its portfolio for the operators of aluminum cold rolling mills. The portfolio already includes four-high stands with optional standard back-up rolls including the variable crown back up rolls or dynamic shaperoll (DSR).

Directory of Tin Plate Users in India

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This report covers name and product details of 147 of Indian tin plate makers in alphabetical order as well as location wise.

Look at the information you'll get in the 'Directory of Tin Plate Users in India'

• Company name -147 entries
• Address-147 entries
• Phone number-143 entries
• Fax number -110 entries
• Email -90 entries

Report Summary:
1. Published: May 2008
2. Format PDF File (Delivery by Email on receipt of payment)
3. Total no of pages – 87

Price: USD 625 or equivalent in INR
(Additional Charges would be levied for delivery of file on a CD or in printed form)

You can order your copy to reports@steelguru.com

US steel prices drop by 10%

It is reported that, because of the credit crisis and the decreasing steel demand in the automobile and construction industries, some US steel manufacturers have received fewer orders, causing their inventory stock to rise.

As per report, even though some of steel product prices have already dropped by about 10%, some steelmakers have warned that their sales profit in the second half will not be as good as the results in the first half year.

The uncertain economic situation has caused US construction projects to be postponed, or stopped. Also, the US rebar export quantity decreased in the July 2008, which showed that the foreign market demand will not be able to counter the weakened demand from the US domestic market.

South Korea pension fund may skip Daewoo shipyard bid

Reuters reported that South Korea's national pension fund may not proceed with a planned bid for Daewoo Shipbuilding & Marine Engineering as global turmoil dents potential returns from the deal.

An NPS official said that "Considering all circumstances, the relative merit of investing in Daewoo Shipbuilding has dwindled sharply from two months ago. We are considering not participating in the Daewoo Shipbuilding deal." He added that it was also difficult to choose which of the three bidders to partner with.

It may be noted that the National Pension Service, the world's fifth largest pension fund, had planned to team up with one of the bidders for Daewoo Shipbuilding, which include POSCO, GS Group and Hanwha Group.

The deal, managed by Korea Development Bank, was initially estimated to fetch as much as TWD 8 trillion when it was announced in August 2008, with a preferred buyer set to be picked next month.

NPS had expected the Daewoo Shipbuilding sale to fetch a handsome return as strategic buyers were keen to draw in the pension fund, which previously said it could contribute up to KRW 1.5 trillion to the Daewoo deal.

Petaquilla Copper announces changes in board of directors

Petaquilla Copper Limited announced that Mr Jochen Tilk, Mr Ian Pirie, Mr Fernando Martinez Caro, Mr Steven Astritis and Mr John Sanders have been appointed directors of Petaquilla Copper effective immediately, replacing Mr Ralph Ansley, Mr John Cook, Mr Richard Fifer, Mr Dale Lucas, Mr Marcel Salamin and Mr Marco Tejeira, who have resigned as directors.

Additionally, Petaquilla announced that Mr Jochen Tilk has been appointed chairman of Petaquilla's board of directors and Mr John Sanders has been appointed president & CEO. Mr Joao Manuel will remain as Petaquilla's CFO.

MHI receives order for power generation systems from Endesa

Mitsubishi Heavy Industries Limited has received a full turnkey order for two sets of LNG fired gas turbine combined cycle power generation systems, some 800 MW in total, from Endesa Generacion SA, an electricity generation company in Spain. The new systems are slated to go on stream in 2011.

The GTCC power generation systems on order will be installed as the number 6 and 7 units of Endesa's Compostilla power generation station, which is located near Ponferrada in the northwestern of the country. Each 400 MW system will consist of an M701F gas turbine, a steam turbine, a generator and a heat recovery steam generator.

MHI's Takasago Machinery Works will manufacture the gas and steam turbines, Mitsubishi Electric Corporation will supply the generators, and the HRSGs will be procured. Civil engineering and installation work at the site and procurement of other auxiliary machinery for the plant will be conducted by a local joint venture formed by INITEC Energia SA, a Spanish engineering firm, and two Spanish general construction companies, COBRA and ACCIONA. Mitsubishi Corporation will handle the trade particulars.

With GTCC type power generation, gas and steam turbines are used in combination to generate electricity in two stages, utilizing high temperature exhaust gas from the gas turbine. This configuration enables GTCC power plants to achieve higher thermal efficiency than non GTCC plants such as conventional boiler steam turbine plants. Higher efficiency means that GTCC plants reduce fuel consumption relative to electricity output and emit less CO2, thus making them friendlier to the environment.

MHI has delivered many GTCC power generation systems in Japan and abroad, and in the process has gained widespread trust in the market for its proprietary technologies and prompt delivery record. On the strength of the latest order, going forward MHI intends to aggressively conduct marketing activities for its LNG fired GTCC power generation systems, which contribute to both effective utilization of energy and reduction in environmental loads.

Shipment of zinc concentrate from Angas mine started

It is reported that the first shipment of zinc concentrate from Terramin Australia’s Angas mine, with a current market value of USD 3 million, has left Port Adelaide.

The 5,400 tonnes load of concentrate is being transported by Pacific Basin Shipping’s MV Mount Rainier to Onsan in South Korea where it will be refined into pure metal and used in the car manufacturing and building industries.

Dr Kevin Moriarty executive chairman of Terramin Australia said that “This is another important achievement for Terramin and for South Australia. The Angas mine has already exceeded expectations in terms of production quantity and quality. We expect to ship at least another 5,000 tonnes of concentrate in November 2008 and we already have 1,200 tonnes on the dock. Many people think mines can get up and running overnight, but actually there have been many years of hard work to get to this momentous point."

Nearly half of the zinc mined around the world is used for galvanizing to protect steel from corrosion and to produce brass and zinc based alloys used in the die casting industry.

STX combines alternative with conventional businesses

Korea Times reported that STX Corporation, STX Shipbuilding's parent, is engaged in solar power development, an area dominated by big conglomerates. In order to follow the latest pitch by shipbuilders toward alternative renewable energy businesses, the group's affiliate STX recently signed a MoU with the regional city of Gumi to set up a 50 MW solar cell plant on a tract of 57,949 square meters.

Mr Kang Duk soo chairman of STX Group said that "There may be a lot of competition in the downstream operations involving solar power, but we believe there will be a lot of money to be made for a long time to come."

Mr Lee Kwang ho spokesman of STX group said that the new facility, set to go into operation in 2009, will produce modules and be responsible for energy generating systems. He added that "Meanwhile, we will invest KRW 200 billion over the next 5 years, starting this year, to fuel additional momentum in our solar related businesses. By 2014, STX Solar is expected to generate around 1,000 MW in solar power per year with sales of some KRW 1.6 trillion."

STX Solar was established last year with an initial investment of KRW 60 billion financed by STX Energy and STX.

STX is working to develop resources in Southeast Asia and Africa as well as marine oil fields in the Caspian Sea's Inam block. In November 2007, its energy focused unit STX Energy contracted a MoU with the state government of Kepulauan Riau, Indonesia, for the construction of the Bintan power plant and supply of electrical power.

Under the mutual agreement, the construction of a 100 MW thermal power plant and power transmission lines for delivering electrical energy in Bintan island of Kepulauan Riau is on track. After the completion of the power plant, electrical power is to be supplied to the industrial complex and large sized resort complex within the area. The plant is to be fully operational for commercial purposes sometime in 2009.

Turkish wire rod market remains weak

It is reported that last week, Turkey’s domestic wire rod market remained weak and since the end users can not predict the future trend of the economy, they would not release their orders.

Turkish end users have offers from Chinese and Italian suppliers. China’s suppliers offer an attractive price while Italy’s suppliers offer good quality. However buying activity remains poor because the end users still have a large amount of stock now.

In Dubai domestic market, the price of SAE 1008 with 6.5 mm diameter USD 750 per tonne while Chinese mills are quoting SAE 1008 wire rod with boron element at USD 800 to USD 860 per tonne.

(Sourced from YIEH.com)

Brakes India to expand capacity of foundry in Oman

It is reported that Brakes India has plans to invest USD 16 million to expand the production capacity to 36,000 tonnes per annum of its foundry facility in Oman.

Brakes India said that the funding will be a mix of debt and internal accruals. The plant which has started commercial production this April is already working at 70% capacity.

The INR 6 billion foundry division which has an 80,000 tonnes per annum facility at Sholinghur near Chennai has ventured to Oman to reach its high value products common rail direct injection pumps and turbo charger castings faster and cheaper to customers like TRW, Volvo, Akebono, Robert Bosch and others.

Rebar prices in Iran continue their fall

It is reported that Iran’s rebar prices are still falling current 12 millimeter to 25 millimeter rebar prices have dropped to around USD 1,000 per tonnes compared to USD 1,050 per tonnes a week ago.

Azarbaijan Steel failed in its rebar sale on the Iran Mercantile Exchange because the buyer asked for USD 880 per tonnes which the mill thought was too low. Some agents facing the same situation offered USD 1,020 per tonnes for Chinese rebar.

Rebar shipments have decreased by a large range because buyers are delaying their purchases as prices continue to drop. Some private mills are forced to sell at lower prices for cash under the condition of the current market recession.

(Sourced from YIEH.com)

Work set to start on Arabian Canal project

It is reported that developer limitless has appointed its first contractor for its USD 11 billion Arabian Canal project.

As per report, Tristar Transport and Contracting has been given the contract for the first phase of earthworks which involves removing more than 200 million cubic meters of earth to be re used to form new landscapes including valleys and hills up to 200 meters high along a 9 kilometer stretch of the waterway’s route.

Work on phase 1 will begin this week with excavation and land reforming completed in three years. Abu Dhabi based Tristar is one of 10 local and international companies who were considered for the work.

Mr Ian Raine project director Arabian Canal said that “Construction of our 75 kilometer Arabian Canal is a mammoth task, so we are splitting the earthworks into around 10 different packages. He added that Tristar will work on phase one and the tender for the second phase will be released shortly.”

Limitless is also master planning a USD 50 billion, 14,000 hectare waterfront city for 2.5 million people to be built along the 30 kilometer inland stretch of the canal. Phase one of the development covers 2,200 hectares and will accommodate 600,000 people.

Metrail wins City of Arabia monorail deal

MEED reported that Switzerland's Metrail has been awarded the contract to build the monorail system at the USD 5 billion City of Arabia development in Dubailand.

The network will consist of a 6 kilometer dual line system with 11 stations which will be served by six two car trains. The first section will be operational in 12 to 18 months. India's Sundaram Architects is the consultant for the civil works.

The report added that the project consists of one of the region's largest shopping malls, the Mall of Arabia a series of residential towers and a low-rise residential development. The local Dhabi Contracting is working on the main structure package for the estimated USD 817 million Mall of Arabia contract.

Iran seeks foreign money for USD 8 billion gas pipeline

Gulf Times reported that Iran may allow international companies to build and run an USD 8 billion gas export pipeline in an effort to boost sales to Europe.

Mr Seyyed Reza Kasaeizadeh MC of National Iranian Gas Company said that the pipeline is set to connect Iran’s South Pars gas field with Turkey and European customers. He said that 4 companies, 2 from Iran and one each from Europe and Asia are bidding for the contract to build the 1,800 kilometer pipeline by 2014 under a so called build own operate deal.

Mr Kasaeizadeh said that “Two Iranian contractors are ready to do it as a BOO and two foreign companies. This is new, for a foreign company to do a BOO for gas pipelines.” He added that the contract will be awarded to one Iranian company and one foreign company or the two Iranian bidders may form a consortium with one of the international firms.

Mr Kasaeizadeh added that the new Iranian Gas Trunkline 9 or IGAT-9 would be part of the planned ‘Persian pipeline’ project that aims to transport gas from South Pars to the city of Bazargan at the border with Turkey and on to Italy, Austria and Switzerland.

As per report, Iran is struggling to develop its oil and gas infrastructure as access to foreign companies and their expertise is choked off by tighter economic sanctions intended to halt the country’s nuclear research activities. Iran is moving ahead with the plan to export some of its vast gas resources to Europe via pipeline as the country is struggling to secure liquefied natural gas technology due to sanctions over its controversial nuclear energy program. LNG technology allows the cooling of gas so it becomes liquid and can be exported in special vessels over long distances.

However Iran’s LNG projects like other hydrocarbon schemes in the country have stalled as the US and the UN have imposed sanctions on the country in response to Tehran’s nuclear power ambitions. As a result, the Islamic republic has been unable to attract foreign investment and funding and secure a wide range of technologies.

20 firm line up for Batinah Railway study

Reuter reported that plans for a major railway line in the Batinah region are set to make further headway with authorities expected to shortly appoint a consultant as a first step in the development of the ambitious project.

Around 20 local, regional and international consultancy firms are in the race for a contract to study the design requirements of the project, underlining the huge interest in Oman’s maiden effort to introduce rail services in the country. Well known firm Consulting Engineering Services is the low bidder for the contract.

As per report, the bidding line up also includes Cowi & Partners, Hamdan Consulting, Scott Wilson Railway, WS Atkins, Mott MacDonald, Reinhardt Consultancy, Modern Engineering, Merrit International, Dornier Consulting, Italfeer, Khatib & Alami, Systra, Bovis, Sunjin, DB International, Parsons Brinkerhoff, LG International, RATES and Dar al Handasah.

The Supreme Committee for Town Planning is overseeing the conception and design of the Batinah Railway project on behalf of the Ministry of National Economy. Envisaged is an arterial railway that will run within the same corridor through which the proposed Batinah Expressway is planned. The roughly 260 kilometer long corridor running parallel to the existing Batinah Highway, starts from Halban Road near Naseem roundabout and travels north all the way to Khatmat Malaha on the border with the United Arab Emirates.

According to officials, the railway project will help alleviate traffic flows along the existing Batinah Highway which is presently the only major traffic corridor serving the wilayats of the Batinah region. The highway also serves as the main overland link between Oman and the UAE and other GCC states. A rail route officials point out will also minimize disruptions to traffic caused by major accidents or overflowing wadis that crisscross the highway.

Claxton Engineering opens its office in Jebel Ali

It is reported that Claxton Engineering Services opens its office in Jebel Ali to serve its international clientele network.

The opening of the new office follows Claxton’s merger with the template, tie back centralizer and camera business of sister Acteon company UWG in August 2008.

The new facility located in the Jebel Ali Free Zone port will improve the service provided to Claxton’s customers in the Middle East and Far East markets, as well as acting as a hub for storage and repair of equipment throughout the region.

Ms Laura Claxton MD of Claxton Engineering Services Limited said that “We identified the Middle and Far East regions as key areas for expansion and have been planning a base of operations there for some time. The increased portfolio resulting from the recent merger with some of UWG’s product lines has presented us with the ideal opportunity to increase our sales and services worldwide.”

Ms Laura said that “The opening of the new office reflects our success in the North Sea and the increasing demand for our services in key oil and gas markets worldwide. She added that with the Dubai office already proving a success, we look forward to opening another office in the Far East to provide a dedicated service to each of these vital regions.”

Demand for Claxton’s services in the area is already high with contract wins from Dubai Petroleum, Maritime Industrial Services and RAK Petroleum. The base will also help service Claxton’s current wellhead maintenance contract for Kuwait Oil Company.

IPIC eyes Mediterranean investments

Reuter reported that Abu Dhabi government owned International Petroleum Investment Company discussed in a meeting late on Sunday potential investment opportunities in North Africa and the Mediterranean region.

IPIC which told Reuters earlier this month that it was aiming to double its investment portfolio to USD 40 billion in the next 5 years did not give details of planned acquisitions.

International Petroleum Investment Company said in a statement carried by the official WAM news agency that “The board looked at the H1 results of the company and the implementation of its projects as well as the opportunities for investment in a number of countries including in North Africa and the Mediterranean.”

IPIC invests in oil related projects for the government of Abu Dhabi which is the world's 5th largest oil exporter. IPIC has stakes in several international oil and gas companies and has been expanding rapidly, particularly in the Mediterranean region.

Spanish daily El Economista quoted industry sources as saying that Ramadan may delay talks over plans by IPIC to buy 33% stake in oil and gas company Cepsa that are currently held by Santander and Union Fenosa.

In June IPIC's board approved plans for a new refinery in Morocco. In April, the firm said that it had acquired 2% stake in Energia De Portugal to pursue joint investment opportunities.

Aramco and Dow petro chemical plant facing delays

Reuter reported that Saudi Aramco and US firm Dow Chemicals' giant Ras Tanura petrochemical faces delays as the sheer size of the project complicates design. Dow's investment in the plant last estimated to cost around USD 22 billion will be the largest single foreign investment in Saudi Arabia's energy sector. The plant was due to begin production in 2012.

The Middle East Economic Survey reported that US based KBR won the front end engineering and design contract for the plant in July 2007, but that contract will be split and partly awarded to another company.

The weekly MEES reported that “Around 2 million man hours of work, covering utilities and off sites and some aromatics units have been taken off KBR and will be given to another firm leading to delays. Tight equipment and labor supplies are driving up costs for energy projects worldwide, causing delays and even cancellations.”

Industry sources said that the size and complexity of some Saudi projects to boost capacity both upstream and downstream makes them vulnerable to delays.

Aramco announced that its 500,000 barrels per day Khursaniyah oilfield had started output, delayed from the initial schedule to start in December last year.

Aramco and Japan's Sumitomo Chemicals' joint PetroRabigh venture also said that earlier this month that it would start operation in the Q1 of 2009 delayed from the last quarter of 2008. Aramco will be involved in USD 129 billion of investment on new energy projects in the next 5 years. About USD 70 billion will be spent by international and domestic JV, while another USD 59 billion will be spent on projects solely undertaken by Aramco.

The world's top oil exporter aims to boost domestic refining capacity by around 1.6 million barrels per day and to expand its petrochemical sector as part of plans to diversify the economy away from dependence on crude oil export revenues.

SABIC profit slump expected in Q3

According to a poll of analysts, Saudi Basic Industries Corporation is expected to see Q3 profit decline by as much as 10%.

Saudi based investment bank KSB Capital forecast SABIC will post Q3 profit of SAR 6.64 billion down by 10.3% on the SAR 7.4 billion it made in the same period last year.

Meanwhile Bakheet Investment Group predicted the petrochemicals giant will post Q3 income of SAR 7.27 billion down just 1.8% on the same period last year.

IISI appeals for life cycle thinking in environmental impact studies

Ms Clare Broadbent manager Life Cycle Assessment of the International Iron and Steel Institute while speaking in Shanghai at the Third Baosteel Biennial Academic Conference, issued an appeal that governments need to work together with the steel industry to utilize life cycle thinking as the most effective holistic approach that considers potential impacts on the environment from all stages of manufacture, product use and end of life.

Ms Broadbent said that “The key to this is the recognition that a life cycle approach is the best way to assess a product’s impact on the environment and is therefore the best way to help society make informed decisions on the use of materials and their economic importance. Focusing solely on one aspect of a product’s life, such as the material production, distorts the real picture because it might ignore increased impact during another life cycle phase, such as the use phase”.

She said that “Life cycle assessment takes into account the environmental impacts of the manufacturing processes of a product. She added that the extraction of the raw materials used by these processes, the use and maintenance of the product by the consumer, its end–of-life as well as the various methods of transport occurring between every link of the chain”.

Ms Broadbent said “An excellent example of the use of LCA is demonstrated in automotive studies, where the use of Advanced High Strength Steels in the vehicle’s body structure results in CO2 savings when compared to other competing materials over the whole of the vehicles life, including manufacture and end of life as well as the use phase and tail-pipe emissions of the vehicle. So if all the cars produced in 2008 were made with Advanced High-Strength Steel then approximate greenhouse gas savings over their lifetime would be 156 million tonnes.”

FMG upbeat about Chinese steel sector growth

According to Mr Graeme Rowley ED of Fortescue Metals Group Ltd, China's massive steel industry is expected to rebound next year as a feverish pace of construction returns.

He said that there is no doubt China has put the brakes on its rapid urbanization in recent months and has accordingly dropped steel prices, which had flowed on to a lower spot price for iron ore. However, he remained optimistic about China's ongoing growth driven by internal demand for its products despite the crisis in the US financial markets.

Mr Rowley said that "All the evidence that we have seen is that China can isolate itself from the damaging economic destruction that is happening in the US. He said that we have had some pretty good advice last week from some people in China who were very confident about its ability to withstand the financial crisis.”

Mr Rowley said that "Clearly it has such an enormous population, and is so focused on its own urbanization and growth and development of general living standards, that they are prepared to continue to finance. He said that of course, there will be a slowdown as a result of lower demand from the US. He added that but when growth drops from 11% to 8% it is still a very strong growth position."

Mr Rowley said to sustain and grow Fortescue's operations the company would consider joint ventures or investment by sovereign funds such as China's EXIM Bank. He said that it was not currently in discussions.

Chongqing to issue CNY 2 billion convertible bonds

Chongqing Iron & Steel Group the largest steel maker in West China, announced that it planned to float up to CNY 2.0 billion six year convertible bonds to mainly fund its investment in technology innovation.

According to the dual listed company's filing with the Shanghai Stock Exchange, the steel maker will also earmark part of the proceeds from the bonds offering to pay back bank loans.

The bonds will be floated within 12 months after obtaining the regulatory approval. However, the Chongqing-headquartered steel producer said in a statement that the bonds issuing plan is still subject to shareholders' approval and the plan will be reviewed and finalized in mid November this year.

Chongqing Iron & Steel has posted a better than expected interim result for the first half of this year. During the January to June period, the company realized net profit, sales revenue and operating income of CNY 484 million, CNY 8.83 billion and CNY 497 million representing a robust increment of 83.86%, 54.23% and 70.61% over the corresponding period of last year, respectively. Earnings per share were CNY 0.28.

China Cosco slumps as Baltic index hits 2 year low

Bloomberg reported that China Cosco Holdings Co the world's largest operator of iron-ore and coal ships, fell the most in more than two weeks in Hong Kong trading after a measure of bulk shipping costs dropped to a two year low.

The shipping line plunged as much as 13% to HKD 6.21 and was at HKD 6.51 at 11:35 AM heading for its sixth straight losing day. The intraday decline was the most since September 11th. Pacific Basin Shipping Ltd and Singapore-listed STX Pan Ocean Co also slipped as much as 13%.

China Cosco leapt 41% in the two days ended September 22nd on optimism rates would surge as Chinese steelmakers ramped up production following the end of curbs put in place to ease pollution during the Beijing Olympics. Instead, many steel mills have remained closed because of weak demand from the building industry, leaving iron-ore stockpiles near records.

Mr Ric Leung a Hong Kong-based analyst at Everbright Securities Co said that “Hopes in the market for a fourth-quarter rebound in dry bulk rates seem to be disappearing. China's demand for steel turns out to be less than expected.''

The Baltic Dry Index fell for a sixth consecutive day yesterday. It's lost 61% this year.

ABB wins USD 36 million solar power order in China

It is reported that ABB, the leading power and automation technology group, has won a contract with LDK Solar worth more than USD 36 million to supply electrical systems, equipment and related engineering and project management services for a new production plant at Xinyu City in China.

As per report when completed, the facility in Jiangxi province will be Asia’s largest polysilicon plant, with an annual capacity of 15,000 tonnes. Polysilicon is used in the production of monocrystalline and multicrystalline solar wafers, the principal raw material used to produce the solar cells that convert sunlight into electricity.

As the main electrical contractor for the project, ABB will provide equipment and services for the electrification of the plant to ensure a safe, reliable supply of power. The scope of supply includes low and medium voltage switchgear, distribution transformers and fully insulated tubular busbars as well as project design, engineering and other services.

Mr Veli-Matti Reinikkala head of ABB’s Process Automation division said that “ABB’s power and process know how, combined with our unparalleled scope of supply, provide the comprehensive approach needed to serve as the Main Electrical Contractor for our customers. He said that our delivery to LDK will ensure consistent, reliable power for their new production plant.”

The first production line of the new plant is scheduled for completion in the fourth quarter of 2008, and 5,000 to 7,000 tonnes of polysilicon are expected to be produced in 2009.

Chinese silicon sheet import in 8 months 0f 2008

It is reported that silicon sheet import from different countries during January to August 2008 total 722,484 tonnes with Japan standing at the top

(In tonnes)

(Sourced from MySteel.net)

US DOC inks agreement on cut to length plates from Ukraine

The US Department of Commerce signed a new, market economy based suspension agreement with representatives of three Ukrainian cut to length steel plate producers that account for a substantial majority of the country’s exports to the United States. The new agreement is effective November 1st 2008, the date that the export limits under the non-market economy agreement expire.

Mr David Spooner Assistant Secretary for Import Administration said that “This agreement continues to provide for stability and fairness in steel trade with Ukraine while recognizing Ukraine’s impressive transition to a full fledged market economy. We appreciate the US and Ukrainian industries’ constructive participation in reaching this new agreement.”

Commerce entered into a non market economy suspension agreement with the Government of Ukraine that suspended an antidumping duty investigation on CTL plate effective October 24th 1997. In February 2006, Commerce revoked Ukraine’s status as a non-market economy country under section 771(18)(B) of the Tariff Act of 1930 as amended. Based on a request by certain Ukrainian CTL plate producers, Commerce agreed to work with those producers to convert the non-market economy suspension agreement to a market economy agreement.

Commerce will continue to work with Ukrainian CTL plate producers to ensure a smooth transition under the new agreement and to actively monitor its compliance.

Russian trade ministry extends AD investigation on SS pipes

Ukrainian Journal Staff reported that Russia's Economic Development and Trade Ministry has extended a special protective investigation into imports of stainless steel pipes for another three months.

According to the document, this is the third largest anti dumping investigation in the past three years, including into Ukrainian pipe imports.

Far East pipeline for Sakhalin gas could come online in 2011

RIA Novosti reported that A pipeline to pump natural gas from Sakhalin Island off Russia's Pacific Coast to the country's mainland and the Asia-Pacific region could come online in 2011.

Mr Alexander Ananenkov deputy chairman of the Gazprom management committee said that "In accordance with an instruction from the Russian government, this gas pipeline is scheduled to become operational in the third quarter of 2011. He said that the Sakhalin-Khabarovsk-Vladivostok pipeline would be developed stage by stage, taking into account the available capacities in the Khabarovsk Territory.”

Mr Ananenkov said that "The gas pipeline will operate at