July, 06 2005
Orissa: Dollar is the craze
The monsoon may be mercurial, and it's raining in Orissa in dollar terms.
United Kingdom's Corus, a leading company dealing with metal products, is latest to evince interest to join the state's industrialization bandwagon.
Corus is the third global player in recent times after South Korea's Posco (which on June 22 signed a MoU with the state government to set up a Rs 51,000 crore mega steel plant at Paradip) and Taiwan's auto component major Kymco to have come forward with investment plans to mineral-rich Orissa.
"A delegation from Corus had recently come to the state and expressed their interest to establish a unit to produce heavy machinery and such stuff that add value to steel. We have had discussions and are hopeful of a positive outcome," industries secretary Gokul Pati told ToI here on Sunday.
Official sources said Corus is yet to come up with a detailed proposal about their project, but had appeared "very interested" to invest in the state.
Corus, an international metal company providing steel and aluminum products and services to customers worldwide, has an annual turnover of nine billion pounds sterling and has major operating facilities in the Netherlands, Germany, France, Norway and Belgium, according to the company website. It employs around 48,300 people in over 40 countries.
Corus, which was created in October, 1999, through the merger of British Steel and Koninklijke Hoogovens, deals with a host of metal products in sectors like construction, automotive, packaging, aerospace, rail, shipbuilding, energy and engineering industries.
Meanwhile, representatives of Kymco, which has shown keenness to set up a two-wheeler factory in the state, are slated to meet chief secretary Subas Pani on Monday.
Orissa, which is currently witnessing an investment boom, has in recent months seen the inking of 39 pacts with private companies, including Posco, for establishment of steel and alumina industries
Steelco Gujarat shuts down Palej Works due to flood
Steelco Gujarat Ltd on Monday said that, the entire activities at the its Palej Works, including manufacturing of cold rolled steel and galvanized products, despatches etc, have been severely affected from June 28 by flood due to heavy and uninterrupted rain since June 25.
The rivers and ponds in and around nearby areas / villages are overflowing and water entered inside the factory building on June 28th morning resulting complete stoppage of production and other activities. This has resulted into disconnection of electricity supply by Electricity Board also from June 28. Machineries and Materials in the factory premises are completely under floodwater.
The Company s said that, its strategic team is fully prepared to start the manufacturing operations as soon as the water recedes
Jindal Steel and Power to expand project
Jindal Steel and Power Ltd (JSPL), which planned to set up a two million tonne steel plant in Orissa, has decided to raise its production capacity to 6 million tonnes while shifting the project site from Keonjhar to Angul district.
The company's Executive Vice-president Naveen Jindal, who met the Chief Minister Naveen Patnaik here yesterday, has submitted a revised proposal in this connection, official sources said.
JSPL had signed an MoU with the State Government on October 18 last for setting up a two million tonne steel project at Deojhar in Keonjhar district in two phases at a cost of Rs 3,850 crore.
Company sources said the project profile had been altered while considerably increasing the investment to about Rs 15,000 crore.
The site of the project, with state-of-the-art technology, would also be shifted from Deojhar to a place in Angul district. The blast furnace and main production unit would be set up in Angul district while the ore handling plant would be in Keonjhar dis trict.
The six million tonne plant would be set up in two phases with the first phase of three million tonnes to be commissioned by 2008. The second phase would be completed by 2011
Mumbai Port logs 23.4% traffic growth
High growth in steel imports helped Mumbai Port Trust (MbPT) to register 23.37 per cent growth in traffic handled during first quarter of current fiscal at 9.50 million tonne against 7.70 million tonne in the first quarter last fiscal.
"The port has already dredged its channels to handle deeper draught vessels of 12 metres. As a result, more vessels carrying steel cargo up to 40,000 tonne opted for our port. This steel cargo gave a fillip to post impressive growth," MbPT Additional Docks Manager T V Sowri Rajan said.
He said as the port is offering facility to handle deeper draught vessel at its Harbour Wall Berth, three more vessels carrying steel cargo from Black Sea ports have started to call at Mumbai Port.
Other major contributors to the increased tonnage at MbPT were vehicles and fertilisers, he said.
"Cargo, including iron and steel, will be the main focus for the port with imports going up. The port is also gearing up to offer more facilities to handle and store agricultural commodities," Rajan added.
In spite of a eight-day strike by transport workers, the port handled 29.47 lakh tonne of cargo in June, 2005 against 27.68 lakh tonne in corresponding month of the previous fiscal, a senior port official said.
MbPT also handled 40,605 Twenty-foot Equivalent Units (TEUs) during the first quarter of this fiscal against 49,421 TEUs in the corresponding quarter of previous fiscal, he said.
The port handled 11,765 TEUs in June 2005 against 15,086 TEUs in same month last year, he said
Sponge Iron scotches allegations on pollution
The Kerala Sponge Iron Limited has said that its unit, coming up in Maanthuruthy near Malampuzha, strictly adhered to the norms prescribed by the Kerala State Pollution Control Board and claimed that the unit was 8 kilometres away from the Malampuzha dam, and therefore, the charge that the unit would pollute the waters of the dam was baseless.
K Pankajakshan, managing director and K K Agarwal, executive director, of Kerala Sponge Iron Limited, were briefing media persons a day after the CPM activists marched to the unit alleging environmental and water pollution, once the unit commenced production.
They said that the PCB had given all the clearances to go ahead with the construction of the project.
They said that as part of the pollution control measures, a sum of Rs 2 crore was being set aside for installing forced draft coolers and an electrostatic precipitator, Rs 32 lakh for setting up a bag filter, Rs 8 lakh on cyclone-cum-bag filter at the cooler discharge plant and another Rs 20 lakh for installing filters at the production points.
He dismissed reports that the unit would draw water from the Malampuzha dam for its needs. Two bore wells are proposed to be dug to meet the needs of the unit on the premises.
The MD said that the unit was not situated in the catchment area. He said the outlay for the unit was Rs 25 crore and the plant is expected to commence production in December.
Responding to a query as to why they selected Malampuzha for setting up the unit instead of the industrial belt of Kanjikode, Pankajakshan said that since a campaign was underway in the industrial belt that steel smelting units not only caused pollution but also did not generate local employment, the promoters chose to locate the factory in Malampuzha, which was less populated
MoUs non-starters
Despite the state governments MoU signing spree for establishment of steel and other mineral-based plants, many proposed projects have not yet taken off.
This prompted the state government to issue a terse warning that the MoUs signed with the concerned companies would be cancelled if they did not pursue the projects.
It may be noted that the government has so far signed as many as 37 MoUs with several private companies, including POSCO, Tisco, Sterlite and Jindal.
It was revealed from a high level review undertaken by the Steel & Mines Minister, Mr Padmanav Behera, that 4 out of 17 proposed steel plants for which MoU had been signed during 2003-05 had not made any progress.
Names of the promoters of these projects are Deo Mines & Minerals, Konark Ispat Limited, MSP Metalix Limited and Monnet Ispat Limited. Deo Mines & Minerals had signed the MoU on 1 October, 2003, while MSP Metalix and Monnet Ispat had in November, 2004. Konark Ispat had gone for MoU signing on 4 May, 2005.
The review revealed that Monnet Ispat had not shown any interest in starting project. The Deo Mines & Minerals and Konark Ispat had not deposited money with the state government for land acquisition. Expressing his displeasure over the lack of interest among the investors to pursue their projects, Mr Padmanav Behera said, that the government would be compelled to cancel the MoU if required
Jindal inks welfare pact
Jindal Steel & Power Ltd today signed a memorandum of understanding for a 5-million-tonne integrated steel plant and a captive power plant to generate 1,000 MW.
Jindal Steel vice-chairman- cum-managing director Navin Jindal said the promised investment of Rs 12,500 crore would generate 10,000 jobs, besides indirect employment for 30,000 more people. He also promised to generously execute the companys community development schemes in Jharkhand.
Vice-chairman and chief operating officer V. Gujral signed the agreement on behalf of the company, while industries secretary Santosh Satpathi inked it as a representative of the government.
Although the site of the proposed plant remains undecided, Gujral said the company has informed the government of its preference for the area between Jamshedpur and Chandil, which is 30 kilometres from the steel city. A key factor influencing the preference is access to the Subarnarekha river, he said.
Both Jindal and Gujral claimed that production in the plant would start within three years of getting possession of the land. Education, health and infrastructure development will be given the highest priority and the remaining work completed in five years.
Claiming that it will be one of the biggest steel plants in the country, Jindal executives said the company planned to export 50 per cent of the production.
My elder brother Sajjan Jindal preferred setting up a steel plant in West Bengal, but I chose Jharkhand because raw material is available here in abundance. Besides, the chief minister is taking keen interest in our project and the officials have been extremely cooperative, said Jindal, who is also a Lok Sabha member.
Commenting on the perceived lack of infrastructure in Jharkhand, he said: Our companys chairman, late O.P. Jindal, firmly believed that infrastructure begins to develop automatically once industries become operational.
Chief secretary P.P. Sharma said a designated officer of the government will coordinate between the company and the government. The nodal officer, he informed, would be appointed shortly. The government has also undertaken to provide power supply till the companys captive power plant becomes operational, he added.
Also present on the occasion was leader of the Opposition Sudhir Mahto and mines minister Madhu Koda, who predicted a steel revolution in the state with both Mittal Steel and Essar expected to follow the Jindals.
Navin Jindal welcomed the entry of other steel giants and said he favoured healthy competition in the market.
Rs 7000cr Essar plant in Bastar
The Essar group has inked a memorandum of understanding (MoU) with the Chhattisgarh government to set up an integrated steel plant in the Bastar region at an estimated cost of Rs 7000 crore.
Principal secretary, industries, Shivraj Singh and J. Mehra, managing director of Essar Steel Chhattisgarh Limited, signed the MoU at a function attended by chief minister Raman Singh and Essar group managing director Prashant Ruia.
The Essar group plant will produce 3.2 million tonnes of steel per annum.
The construction work will start after land acquisition and other formalities are completed within three months, Ruia said. The project will be completed in two phases with a capacity of 1.6 million tonnes each, he said. Both phases will be completed within 36 months. The company will invest Rs 6000 crore on the plant and Rs 1000 crore on mining. It will have its captive power plant, Ruia added.
This is the second major investment in Chhattisgarh in recent times
Doaba Saria organises dealers meet
To discuss the customers attitude towards Doaba Saria TMT Gold, the company organised a dealers meet here.
On the occasion Narinder Goel, managing director of Doaba Steel Rolling Mills, said the company, established in 1970, was the first unit to make CTD bars in Punjab and was the first licensee of ISI for TMT in Punjab.
The rolling mills, the authorised conversion agents of Steel Authority of India since 1983, and suppliers to Indian Iron & Steel Co. Ltd since 1983, were registered suppliers to various government departments including defence, he claimed.
The raw material, used for manufacturing TMT bars duly tested in own fully equipped laboratory with all modern facilities for physical and chemical testing, conforming to BIS Standards as well as International Standards, enables consistent quality and stable production of TMT bars size ranging from 8 mm to 32 mm, he added
BJP stern on Posco deal
The BJP state leadership toughened its stand on the controversial provisions of the state governments MoU with Posco and said Mr Naveen Patnaik should take into account the objections raised by the party before signing the Memorandum of Agreement with the company.
Contrary to speculations in a section of the media here that the BJP has had to tail the BJD following chief minister Mr Naveen Patnaiks complain to Mr LK Advani, top state leaders, including ministers of the BJP, met for over four hours to deliberate on the Posco proposals.
The party fully endorsed its state president Mr Juel Orams view on the project and his letter to the chief minister in this regard. Revenue minister Mr Manmohan Samal and industries minister Mr Biswabhusan Harichandan too agreed with Mr Orams stand at todays meeting.
The endorsement of the party was significant in the backdrop of a whisper campaign that Mr Oram had expressed his personal views on the project. It cannot be considered as the stand of the party was the line by a few ministers who were soft-peddling the issue. Critics had pointed out that these ministers were keen appeasing Mr Naveen Patnaik to retain their job. In fact, Mr Samal is said to have issued a statement which was at variance with the line taken by Mr Oram and even Mr Harichandan was reportedly unhappy. Yesterday Balasore MP Mr Kharavela Swain had gone on record welcoming the project proposal and implicitly stating that Mr Orams statements or letter to the chief minister was on an individual capacity.
Mr Oram, in his hard hitting letter to the chief minister, had questioned several aspects of the MoU with Posco. He had raised doubts on the contention that iron ore of Orissa was low quality ore, he wanted a review of the export of ore clause.
Suggesting that the chief minister was perhaps misguided by a handful of bureaucrats, the BJP state president had pointed out that ministers had not been taken into confidence on the Posco deal.
The BJP iterated its position that it welcomed the Posco project but had reservations to certain provisions in the MoU. The party is most peeved over the fact, which by now is well established, that the chief minister did not involve any of the BJP ministers, including Mr Harichandan or Mr Samal during negotiations with Posco. Despite the fact that Mr Harichandan is the industries minister and Mr Samal needs to come into the picture on land acquisition-related issues, neither was taken into confidence. Mr Harichandan was involved at the very last stage when a high-level committee met to clear the MoU
Posco pins hopes on 'flexible' SEZ policy
South Korean steel major Posco is hoping for maximum flexibility in the countrys special economic zone (SEZ) policy. This, according to Poscos chief representative in India SM Doh, would also allow the company flexibility to serve both Indian and international markets, when the time comes.
Thus, while the SEZ status that the company seeks for its $12bn steel plant in India may bring down the cost of its project, it would definitely not preclude prospective plans to sell in the domestic market. The company is pinning its hopes on the new SEZ policy the rules of which are soon to be framed to allow flexibility. Also, state governments are likely to play a more proactive role and allow further incentives to investors over and above what the Centre would permit.
According to the MoU signed between the Orissa government and Posco, the state government, apart from recommending SEZ status, would also consider granting incentives and concessions under the industrial policy resolution. This apart, the special single window clearance for Poscos project and its participation in infrastructure creation in Orissa are also in line with the countrys new SEZ Act
SM Doh says, At first we were hesitant to serve the Indian market. The consumption of steel here is not very huge, the industry is crowded with big and small players and we felt it would lead to a situation of over-supply. But the SEZ status that we seek under the policy allows flexibility, which is why I repeat it is a win-win situation for us. Doh points out that while an SEZ status would imply that its units would be mostly export-oriented, the new policy also allows sales in the domestic tariff area, provided the incentives enjoyed while importing raw materials is paid back. However our decision to sell in the domestic market would be a purely business decision based on the prevailing situation after say five years, he adds. Poscos initial plan is to export the 3m tonnes of slabs to South East Asian countries like Taiwan, Thailand, China and Japan apart from South Korea he added. Remember, these may not be our final destination by 12, our plans may change. However for those initial years at least, the new SEZ policy would come in handy for Posco. It is aimed at providing an internationally competitive and hassle free environment for exports. The units in the zone have to be a net foreign exchange earner but they shall not be subjected to any pre-determined value addition or minimum export performance requirements.
Sales in the DTA by SEZ units shall be subject to payment of full custom duty and import policy in force. The Orissa government has committed that it would recommend to the Centre Poscos case for SEZ status and facilitate grant of the same. While this in turn mean all facilities allowed to an SEZ developer and to SEZ units. At present this would mean exemption of duty on capital goods, raw materials, consumables and spares both under the Customs Act, 1962 and Custom Tariff Act 1975. The Company would not only enjoy the benefits of no-licence for import it would also get exemption from the central excise duty on procurement of capital goods, raw materials and consumable spares from the domestic market. There would a drawback (reimbursement) of sales tax and other levies paid on domestic purchases. A five year income tax holiday, 50% tax exemptions for next five years after which rebate on 50 % of the profits that is ploughed back for the next three years are other sizeable benefits that would accrue to Posco.
Paradip plant likely to pump up rail projects
The slew of sops by the Orissa government to South Korean steel major Posco may make domestic steel companies see red. But Poscos Paradip steel plant is expected to provide a shot in the arm for several infrastructure projects in Orissa which have been stagnating for a while.
Poscos chief representative in India, SM Doh, told ET that the company was not averse to participating in the railway ministrys special purpose vehicle Rail Vikas Nigam in pursuit of infrastructure required for the plant. RVNL is set up to speed up work on debottlenecking of critical rail projects.
Mr Doh said, Some of the links will benefit all steel companies and the state in general, so we prefer to wait till the completion of the first module after which we may opt to pitch in and help establish the links which will directly benefit us.
Topping the list is the Daitari-Banaspani broad guage rail link which will connect mining areas in the state. Sanctioned as far back as in 1992-93, the project has made a little headway and the Railway Budget this year has sanctioned Rs 128.61 crore to be spent by RVNL towards this. The state goverment has already stepped up pressure on the ministry of railways to expedite completion of this link.
Also proposed is the Haridaspur-Paradip broad guage link to be developed through a public-private partnership by RVNL. In fact, the MoU between the state government and Posco clearly states that the company will explore the possibility of participating in SPV for the project
Another broad guage link between Banapani and Paradip may come up as a separate dedicated railway line from the mining site to the steel project.
According to the MoU, this may be set up by the company depending on the transportation capacities needed and the project economics. This may be undertaken by the company or jointly with RVNL or third parties in consultation with the ministry of railways, the MoU adds.
However, as Mr Doh underscores, a final decision will be taken only after the completion of the first module of phase I of the 12mt steel plant. The first module will see about 3mt capacity coming up.
On the roads front, focus is on to facilitate early completion of the national highway between Haridaspur (Chandikhol) and Paradip and to upgrade the state highway from Cuttack to Paradip to a 2-lane road. The Orissa government will actively consider construction of 2-lane free-access public roads, connecting Posco's steel project, mine project and integrated township development to the nearest national highway and state highway, the MoU adds
GOLDEN OPPORTUNITY
Steel is one of the basic ingredients for development. After being in the focus in the developed world for more than a century, attention has now shifted to the developing regions. In the West, steel is referred to as a sunset industry. In the developing countries, the sun is still rising, for most it is only a dawn.
Global steel production grew enormously in the 20th century from a mere 28 million tonnes at the beginning of the century to 780 million tonnes. That was the period when the steel industry developed in Western Europe and the USA followed by the Soviet Union, Eastern Europe and Japan. However, steel consumption in the developed countries has reached a high stable level and growth has tapered off.
[u]Steady growth[/u]
Towards the end of the century, growth of steel production was in the developing countries such as China, South Korea, Brazil and India. Steel production and consumption grew steadily in China in the initial years but later it picked up momentum and the closing years of the century saw it racing ahead of the rest of the world. China produced 220.1 million tonnes in 2003 and 272.2 million tonnes in 2004. That is much above the production in 2004 of Japan at 112.7 million tonnes, the USA at 98.4 million tonnes and Russia at 64.3 million tonnes.
South Korea has stabilised at around 46-48 million tonnes, and Brazil at around 30 plus million tonnes. Other countries in Europe in the top 10 were Germany at 46.4 million tonnes, Ukraine at 38.7 million tonnes and Italy at 28.3 million tonnes. India produced 32.6 million tonnes in 2004.
At the time of Independence, India had only two integrated steel plants, Tata Iron and Steel Co Ltd at Jamshedpur and The Indian Iron and Steel Co Ltd at Burnpur. In the late fifties, the public sector plants came up at Rourkela, Bhilai and Durgapur. Two more public sector plants at Bokaro and Visakhapatnam followed. In addition, there were a number of small plants. Steel production grew rather slowly in India. Till the nineties in more than four decades after independence, steel production grew to around 14 million tonnes.
In a decade since the opening up of the economy in 1991, steel production doubled and was equal to the achievement of more than four decades. New private sector plants came up at Hazira, Dolvi and Toranagallu. Most of the other plants were modernised or expanded. From around 1998, the steel industry was in the doldrums with over-capacity, restricted demand and a global downturn. International prices started looking up from December 2001 and, since then, it has boomed. Import of high quantities of steel by China has also assisted in lifting prices. In fiscal 2004-05, all steel companies have recorded high level of profits.
[u]Grand opportunity[/u]
The enhanced growth rate of the economy has led to forecasts that steel consumption in India is going to rise from the present level of around 30 million tonnes to around 60 million tonnes by 2012. This has resulted in a scramble in the steel industry for expansion, growth, and development. Nobody wants to miss out on this grand opportunity.
The countrys largest steel producer, Steel Authority of India, has already unveiled an investment proposal of Rs 25,000 crore enhancing its crude steel production from 11.83 million tonnes to 18.7 million tonnes. Sails expansion will be spread across its four plants; the programme also includes further modernisation of its plants. Tata Steel is currently expanding its Jamshedpur plant from four to five million tonnes. It is expected to be completed later this year and further expansion of the plant by 2.4 million tonnes at a cost of Rs 7,800 crore is expected by 2009. Tata Steel is also setting up a new six million-tonne steel plant at a cost of Rs 15,400 crore at Kalinganagar. The first module of three million tonnes is scheduled to be completed in four years. The next module of another three million tonnes will take two years thereafter. Rashtriya Ispat Nigam Limited has planned to spend Rs 8,529 crore to double the capacity of its Visakhapatnam plant from the present 3.5 million tonnes to 7 million tonnes by 2012. Ispat Industries has planned to increase its hot rolled steel capacity from 2.4 million tonnes to 3.6 million tonnes and its cold rolled steel capacity from 0.5 million tonnes to 1 million tonnes at its Dolvi plant. Essar Steel is expanding the steel making capacity of its Hazira plant from 2.4 million tonnes to 4.6 million tonnes at a cost of Rs 2,000 crore by next year. Jindals have proposed a new 3 million tonnes plant at Kharagpur but the iron ore linkages are still to be worked out. The South Korean steel giant Pohang Steel Company has proposed a 10-12 million tonnes steel plant in Orissa, to be built in three stages. Their investment proposal of $12 billion is the highest ever foreign direct investment in the country. However, the project is mired in controversy regarding iron ore exports. Mittal Steel, the worlds largest steel company, is considering investment in a mega plant in Jharkhand. Arcelor, the worlds second largest steel company, has shown interest in Indias rapidly developing steel industry.
The general pattern of per capita steel consumption in a developed country is around 300 kg, although during periods of high growth it can shoot up further. The present per capita consumption of steel in the country is just short of 30 kg. Therefore, India has a long way to go to achieve the consumption levels of the developed countries. It has the potential to be the second largest steel producing nation in the world and optimists feel that it should be possible to achieve it in the next 15-20 years.
[u]Surplus workforce[/u]
Steel is no more the labour-intensive industry it used to be. A modern steel plant employs very few people. In South Korea, Posco employs 10,000 people to product 28 million tonnes. As a thumb rule, one can put the direct employment potential at 1,000 per million tonnes. It could be less. Moreover, all the old steel plants have surplus work force. The expansion envisaged will provide them with an opportunity to rationalise their manpower. However, steel being a basic industry, it generates substantial growth of both upstream and downstream facilities. According to some estimates one man-year of employment in the steel industry generates 3.5 man-years of employment elsewhere. Considering all these, total employment generation will be substantial.
Around half of the steel produced in our country is consumed in construction and the balance for manufacturing. The expansion of the steel industry envisages the expansion of downstream industries consuming steel. A large portion of the steel production expansion is going to take place in eastern India. With lower freight costs, manufacturing industries in the eastern zone would be better placed to utilise steel as raw material. There is a golden opportunity for states in this region to catch up with the rest of the country. The mindset of decline has to open up to one for growth
Nisshin Steel to Cut Output Up to 30% of SS this quarter
Nisshin Steel Co., Japan's second- largest maker of stainless steel, plans to cut production by as much as 30 percent this quarter as it seeks to boost prices hurt by declining demand.
Nisshin Steel will reduce stainless steel production to about 40,000 tons a month, President Toshihiko Ono said yesterday in an interview in Beijing. The company produced an average of about 56,000 tons of steel a month last year and had planned to produce 50,000 tons a month this year.
Nisshin Steel joins ThyssenKrupp AG, the world's largest stainless steelmaker, and Posco in cutting production because of rising inventories. Global stainless steel output rose 7.4 percent in the first quarter, led by Asian producers, according to the Brussels-based International Stainless Steel Forum.
Two VAI Converters for Ukraine
Voest-Alpine Industrieanlagenbau has been contracted to supply a new BOF shop consisting of two converters for Ukraines Alchevsk Iron and Steel Works. Each LD vessel will have a capacity of 300 tons, for a total annual output of 5.4 million metric tons.
The new BOF shop will feature all of VAIs latest technology for steelmaking and automation. According to VAI, new environmental systems will significantly reduce regional air pollution.
The start-up of the new plant in 2007 will make it possible to close parts of the existing steelmaking complex, and the plant will reach a new capability of 6.4 million metric tons/year, with its two BOFs and two slab casters. VAI was contracted to supply the first in 2003 and the second this past May. The second caster will be commissioned late next year
Taiwan's Formosa Puts Steel Plant Plans on Hold
Taiwan's Formosa Plastics Group has postponed plans to build a steel plant in southern Taiwan until the government issues new CO2 emission standards for the industry, an executive said on Monday.
The decision comes only two weeks after the government sketched an initial framework for cutting CO2 emissions at a national conference, which could potentially place hurdles in the way of future industrial projects.
"The CO2 emission levels haven't been set yet. It depends on the government. If there are no standards, then how can we proceed?," said Jerry Lin, deputy spokesman for the group's parent, Formosa Plastics Corp.
Formosa is planning to invest T$130 billion ($4.1 billion) to build a 7.5 million tonnes-per-year steel mill in southern Yunlin county.
Pakistan : MPL to set up steel plant at a cost of Rs600 million
Mechno Pakistan Limited has assured a further investment of Rs.600 million in Pakistan steel sector by setting up a steel plant on Sheikhupura Road here.
Federal Minister for industry and production, Jahangir Tareen in a function here disclosed that initially envisaged steel plant would be manufacturing poles and radars for telecom sector.
He appreciated Mechno Pakistans move to invest in Pakistan steel sector and told that the government intended to extend more facilities to the investors in future
South African steel workers to strike over wages
Nearly 190,000 South African striking steel workers will march in major cities across the country on July 12 to protest against wage increases that failed to meet their demands, union officials said on Monday.
Talks with employers covering 310,000 workers in the industry deadlocked last week and the unions issued a 48-hour strike notice, but had not given a date for any action.
Employers offered 5 percent and 6 percent wage increases for two categories of workers, while the union had demanded a 6 percent and 7 percent rise, down from an earlier demand of 6.5 percent and 7.5 percent.
Listed steel firms Mittal Steel S.A. and its smaller rival Highveld Steel & Vanadium would not be affected by the strike, nor would Columbus Stainless Ltd. because they conducted their negotiations separately.
Mittal Steel BBB+ ratings affirmed by S&P
Standard & Poor's Ratings Services said it affirmed all its ratings on Mittal Steel Co NV and related entities, including its BBB+ long-term corporate credit rating on the group. S&P's outlook on the rating remains stable.
'The ratings on Mittal Steel are based on its low cost position, significant upstream integration, status as the world's largest and most diversified steel producer, and low net debt position,' said S&P's credit analyst Tommy Trask.
These factors are tempered, however, by a history of growth by acquisitions and an ambition to continue this path, country risk associated with the group's operations in emerging markets, and significant capital expenditure commitments to various governments
Oman: US$350 million steel factory signs gas deal
The Sultanate Monday signed an agreement with Shadeed Steel Company to provide a factory which it implements at Sohar Industrial Port with gas. Dr. Mohammed bin Hamad al-Rumhi, Oman's Oil and Gas Minister signed the agreement on behalf of the Sultanate's government, while Ali bin Hamil al-Ghaith, chairman of Shadeed Steel Company's board signed for his side.
Nassir bin Khamis al-Gashmi, Oil and Gas Ministry undersecretary told Oman News Agency (ONA) that the company will set up a steel factory whose first phase costs US $ 350 million. The factory's production capacity will hit 720,000 tons of molds per year.
He added two American and German companies will transfer technology and provide the project with required equipment. He said this project is the first of its kind in the world. He added that the strategic location of Sohar Port will enhance the product competitiveness. He noted that the project will consume 1.4 million cubic meter of gas per day over a period of 20 years
Japan to Provide Chinese Steel Groups With Environment-Friendly Technology
Japanese and Chinese steel associations agreed Monday [4 July] to boost exchanges of environment protection expertise, with Japan pledging to provide Chinese companies with environment-conserving technology.
The Japan Iron and Steel Federation and the China Iron&Steel Association exchanged a memorandum on the bolstering of ties on the first day of a two-day meeting, attended by about 200 representatives of companies, academia and the two governments.
Steel and iron industries are energy-consuming industries that emit carbon dioxide, one of the greenhouse gases scientists say induces global warming.
Currently, Chinese companies on average need 1.5 times more energy to make 1 ton of steel products from raw materials than do Japanese companies, according to Japanese association officials.
AK Steel ordered to rehire 107 workers
AK Steel must rehire more than 100 laid-off employees, according to an arbitrator's ruling announced late Tuesday by the company.
The arbitrator ruled July 1 on the Middletown company's 2004 suspension of a minimum base workforce plan covering hourly maintenance and operating employees at the company's Middletown Works represented by the Armco Employees Independent Federation labor union.
AK Steel must rehire 107 laid-off employees to raise the total Middletown hourly workforce to a level of 2,761, by September 30.
In lieu of returning the hourly workforce to the 3,114 previous bargaining agreement level, the arbitrator has allowed the company to establish and pay into a fund.
AK Steel produces flat-rolled carbon, stainless and electrical steel products for automotive, appliance, construction and manufacturing markets, as well as tubular steel products.
Thailand : Villagers now hope to block new steel plant
After successfully blocking the building of a coal-fired power plant, villagers at Ban Krud in Prachuap Khiri Khan province have teamed up again to oppose a planned steel plant in their village.
Village representative Jintana Kaewkhao said agents had contacted people last week to check whether they would allow the use of public land in the village.
They feared a steel plant, like the scrapped power plant, may generate waste water that would be discharged to the sea and damage the fertile coral reefs.
Ban Krud villagers took nearly 10 years fighting the Union Power Development (UPD) power plant before finally stopping it in 2003.
