August, 06 2005
Rashtriya Ispat merger with SAIL ruled out
The Government on Friday ruled out the merger of Rashtriya Ispat Nigam Limited (RINL) with Steel Authority of India Limited (SAIL) at present.
"There is no formal proposal at present for merger of RINL with SAIL," Steel Minister Ram Vilas Paswan said during the question hour in Rajya Sabha.
Replying to supplementaries, he said informal consultations have been held with the Andhra Pradesh Government, which is opposed to the merger.
In his answer to the main question, Mr Paswan said the Planning Commission has recommended the expansion plan of RINL to increase its production capacity from the existing three million tonnes of liquid steel to 6.3 million tonnes.
Steel hub at Jharhand in the making
Jharkhand might soon become the new steel hub of the country and produce about 33 million tonne of steel per annum if all goes according to plans.
The three biggies of the steel industry--Jindal, Mittal and Essar are very keen on tapping the states 2.9 billion tonne of iron ore deposits along with several other companies who have either already signed MoUs with the state government or are about to do so.Jindal Steel has already signed an MoU to set up a five million tonne per annum steel plant. Essar Steel is also in the picture with a five million tonne plant and has decided to double production with a Rs 14,000 crore investment.
Essar representatives met chief minister Arjun Munda sometime last week to let the government know about their revised plans. Essar will be setting up its plant in Manoharpur, West Singh-bhum district, and Munda has already directed officials to acquire the land by the end of this month. On the other hand L.N. Mittal has plans to set up a 10-million tonne steel producing plant in the state. Munda, who visited London during the last week of July, met Mittal to discuss the issue.
Indian Coal reserves to last for 243 yrs
Coal Minister Dasari Narayana Rao today informed the Rajya Sabha that as per the latest estimates 2,47,846.85 million tonnes of coal are available upto a depth of 1,200 metres in the country and would last for 243 years.
He said the sustainability of coal reserves in the country is derived from available proven reserves and present production rate and is typically defined by Reserves to Production (R/P) ratio.
The all India coal demand in 2005-06 as finalised by the Planning Commission is 445.65 million tonnes and the requirement of lignite for Neyveli Lignite Corporation's (NLC) operation is 20.4 million tonnes for the year 2005-06.
Rao said that the all India coal production in 2004-05 was 382.14 million tonnes.
GM to buy Indian auto parts worth US$1 billion a year by 2008
General Motors Corp. plans to buy $1 billion US worth of auto parts from India each year by 2008 as part of cost-cutting efforts at the world's biggest automaker, a senior executive at its local subsidiary said Friday.
GM currently buys about $120 million worth of parts from India each year, and the plan to increase those purchases should result in major savings for the carmaker, said P. Balendran, vice-president of General Motors India.
"Auto parts in India cost 25 to 30 per cent less than in North America or Europe," Balendran was quoted as saying in a media report. "They are also around 15 per cent cheaper than South Korea and Mexico, but the quality is on a par."
GM India Ltd. is a wholly owned subsidiary of GM, which is based in Detroit.
GM currently buys auto parts, such as castings and forgings, from around 110 suppliers in India.
GM is among several automakers - including Ford Motor Co., DaimlerChrysler AG, Volkswagen AG, Volvo AB and Mitsubishi Motors Corp. - that are sourcing auto parts from low-cost countries like India because of tough competition and rising costs of raw materials.
The Automotive Component Manufacturers' Association, a leading Indian trade body, has forecast that auto parts exports from the country will grow to $2.7 billion by 2010 from the current levels of more than $1 billion.
Mr Munda & Mr Mittal meet today
Chief Minister Arjun Mundas much-awaited meeting with steel magnate Laxmi Niwas Mittal will begin today morning. Munda and Mittal will finalise the nitty-gritty of the proposed MoU.
Officials of Mittal Steel have already discussed the draft of the proposed MoU with chief secretary P.P. Sharma and other senior officials accompanying Munda. After getting positive assurances by the state government, the Mittal Steel officials agreed to amend some of the clauses of the proposed MoU.
The Mittal Steel officials repeated that they were committed to take up the Jharkhand project, despite receiving several other lucrative offers from different parts of the world. This was mainly because of the positive response by the Jharkhand government and its investor-friendly industrial policy. That apart, the state also had rich mineral reserves.
Mittals men repeated that they were interested in greenfield investments in Jharkhand, which involved both carrying out mining operations and setting up an integrated steel plant. They intend to invest over Rs 40,000 crore in the state.
Plan to make India a global auto hub
The bumper-to-bumper traffic of global automobile biggies on the passage to India has finally made government sit up and take notice. In a bid to drive greater investments into the sector, ministry of heavy industries has decided to put together a 10-year mission plan to make India a global hub for automotive industry.
This plan will look at giving India the edge in not only producing cars and components, but also in vehicle designing. "It will also set the roadmap for Budgetary fiscal incentives," a government official said.
India has emerged as a low cost production hub for small cars. In fact, vehicle exports are fast emerging the highest forex earner among manufactured goods.
"India has an inherent cost advantage, thanks to a large pool of low-cost skilled workers, engineers and a well-developed yet cost-competitive vendor base. We want to now make India the hub for all automotive activities from designing, engineering and manufacturing to telematics and IT-aided services," a senior government official said.
The large domestic market is an added advantage as it can absorb a good chunk of the output. The mission plan will also study the stumbling blocks and find ways of removing these hindrances. Industry insiders said the sorry state of infrastructure particularly ports in the country would prove to be a major stumbling block.
NMDC declares 114.5% dividend
National Mineral Development Corporation Ltd (NMDC) has declared a 114.5 per cent dividend for the year ended March 31 reflecting a quantum jump from the previous best of 35 per cent paid for the year 2003-04. Consequently, the Central Government, which holds 98.38 per cent equity, will receive Rs 148.87 crore.
Net sales during the quarter was up from Rs 471.23 crore during corresponding quarter last year to Rs 574.19 crore in the current year reflecting an increase of 21.85 per cent. The profit before tax went up from Rs 258.39 crore (Q1 last year) to Rs 357.42 crore (an increase of 38.33 per cent).
Production of iron ore during the quarter was 5.28 million tonnes as against 4.7 million tonnes over corresponding quarter last year reflecting an increase of 12.34 per cent. It mined 17,980 carats of diamonds as against 15,151 carats (an increase of 18.67 per cent).
Orissa Sponge Iron plans steel plant in Karnataka at Rs 200 crore
Orissa Sponge Iron Ltd is planning to set up a 2.5-lakh tonne a year steel manufacturing plant in the Bellary region in Karnataka at an investment of about Rs 200 crore at either Hassan or Chitradurg.
The company is also expanding capacity at its plant in Palaspanga in Keonjhar district of Orissa from 2.5 lakh tonnes a year to 10 lakh tonnes by 2010, at a cost of Rs 800 crore.
Erdimer workers hinder due diligence
The 7,500 workers at Erdemir stress that they are against any sale that would endanger their livelihood. Protests have been going on for a while. Workers that have continued their sit-in protest have directed their dissent at blocking the entrance of representatives of firms that are pre-qualified to bid on the company from visiting the factory.
Among the companies that are pre-qualified to bid are Russia' Novolipetsk Iron and Steel Corporation. The company's planned visit was protested and blocked by workers from 12:30 to 8:30 a.m. yesterday morning. The representatives were unable to view and evaluate the facility.
Trk Metal Syndicate Ereğli Branch Chairman İşhami Erdoğ, speaking on behalf of Erdemir workers, said the workers would not let any company representative enter the factory and just as we did not let Arcelor representatives examine the factory, the Russian company will not be able to investigate our factory.
Turkish CEOs resignations still in the spotlight
The resignations of the general managers of both Erdemir and related firm İsdemir, drew significant attention to the question of the privatization of the state's strategic assets. Indeed, both GMs admitted they were having a hard time with the government's determination in sticking with the commitment to the sale of state-owned organizations.
Speaking to daily Milliyet on Friday, former İsdemir GM Atamer Giyici said there were some issues on which he and his colleague did not agree with the government, regarding the privatization method, but stressed that both resignations were not a revolt. We started work at these organizations as engineers and were promoted until we each became executives. We have dedicated ourselves to improving these factories, but now, it is hard to adapt to such massive changes.
He pointed to Prime Minister Recep Tayyip Erdoğan's statements one day before the announcement of bids saying that they were unfortunate. Erdoğan said that Erdemir is not the pearl of Turkish industry as had been thought. Erdoğan's statement also caused quite a stir among many factions in Turkey, including a number of bureaucrats.
Arcelor prevented from taking control of China's Laiwu steel
The Chinese government has blocked Arcelor's plan to take a majority stake Chinese group Laiwu Steel, a Laiwu management source said.
The source said discussions with Arcelor are continuing, but that 'Arcelor will fully respect government regulations and industrial policy.' The Chinese government last month prohibited foreign groups from taking a majority stake in Chinese steel producers.
Arcelor CEO Guy Dolle said last month the company would take a final decision in the next 2-3 months on whether it will seek a majority stake in Laiwu, commenting that talks were 'moving along well.' The Financial Times reported Arcelor was mulling a 205 mln eur bid. Dolle had said that Arcelor has 'not changed its view' after the government ruling.
13 die in China coal fire
A fire at illegal coal mine in northern China killed 13 miners, mine safety officials confirmed Friday. The fire broke out at 10:30 p.m. Wednesday at Taodingshan coal mine in Handan, a city in Hebei Province, Xinhua reported.
The preliminary investigation showed a wood stake in the shaft caught fire first and the blaze soon spread across the mine, suffocating 13 working miners underground.
Operations at the time were suspended in last year because of safety considerations. The two owners of the mine, Zhang Weibing and Yang Hongfang, were in police custody and their financed frozen.
Voistalpine orders Siemen for automation of new Galvanizing line
The Siemens Industrial Solutions and Services Group (I&S) has received an order from the Austrian company, Voestalpine Stahl GmbH, Linz, to equip its new hot-dip galvanizing line 4, with drive and automation technology, which is likely to start operating in the middle of 2007.
The scope of supply and services includes supply of all the electrical components as well as planning of the electrical and control system, creation of the software including an integration test as well as all the electrical installation work. Siemens will also be responsible for commissioning the electrical and control systems of the plant.
The plant will be used to manufacture high strength galvanized cold steel strip up to 1750 millimeters wide for the automotive industry and will have a capacity of around 450,000 metric tons of finished product.
Voestalpine Stahl GmbH is a company belonging to the steel division of voestalpine AG. The company operates a fully integrated steelworks with an annual production of around five million metric tons.
The main customers are the automotive and automotive-supplier industries, manufacturers of household appliances and the construction supply industry.
Venezuelan Sidor partially paralyzed by protests
Worker protests have partially paralyzed operations at Venezuela's largest steelmaker Sidor, impacting billet, bar and rod production complexes, according to local news reports.
Protests erupted this week over the work related death of a worker in the billet plant. Protestors are calling for safer working conditions.
Sidor is almost 60%-owned by the Amazonia consortium of Mexico's Hylsamex, the Techint group, Brazil's Usiminas and Venezuela's Sivensa. Venezuela's heavy industry state holding CVG has the other 40%.
Ukraine may sell Krivorozhstal for 6 bln dlr
The tender commission set up for the re-privatization of Ukraines biggest steel mill, Krivorozhstal, has suggested setting the starting price of a 93.02-percent stake in the enterprise at 2 billion dollars, 150 percent more than what was paid for the privatization of that package in 2004, the State Property Management Fund told Tass.
In the first attempt to privatize Krivorozhstal in June 2004 the 93.02-percent share package went to the Investment Metallurgical Union. The new government said the deal was unlawful and questioned it in court.
The Ukrainian government asked the State Property Fund to evaluate the share package in question by August 1. The terms of the bidding contest are expected to be finalized by August 10 and the contest itself to be declared on the same day. The best bidder will be known on October 24.
It is up to the government to set the price and the conditions, the source said. The terms of reference include the requirement for the companys development that would ensure it is not turned into a source of semi-finished products. A future buyer will have to make major investment commitments and pledge to address a package of social issues.
A member of the commission has said there is an investor ready to offer nearly 6 billion dollars.
BHP set to shut its plant for good
Bhp Billiton is believed to have given up on ever reopening its disastrous Boodarie hot briquetted iron plant at Port Hedland and is expected to formally terminate the venture later this month.
The plant, already technically worthless since BHP wrote off its entire $2.6 billion investment in 2000, has been shut down since May last year when an explosion killed one worker and seriously injured three others. The company is now facing four charges, each carrying a potential penalty of $200,000, over the blast.
Despite an intensive review of the operation over the past year to consider remedial measures to make the plant safe or convert it to other uses, it is believed that chief executive Chip Goodyear has finally run out of patience.
Vietnam MOT warned about big inventory steel
Inventory steel volume is about 240,000 tonnes, according to the Vietnams Ministry of Trade. Statistics from the ministry show that the total volume of imported finished steel was about 1.6mil tonnes for the first months of the year. Another 1.6mil tonnes were produced by local laminating steel plants. This means that supply has exceeded demand: currently 240,000 tonnes of steel remain in stock.
However, steel producers reject the idea that inventory steel is at alarming level. Nguyen Kim Son, Chairman of the Vietnam Steel Corporation (VSC), acknowledged that the stock is quite large, however he stressed that inventory volume is still at an acceptable level.
Mr Son pointed out that only 50% of the imported steel is construction steel, the remaining volume consists of bar and plate steel, popularly used in power and shipbuilding industries. Currently this type of steel cannot be produced by local plants.
Brazilian As Villares to build pig iron plant
Brazilian specialty steel producer As Villares will build the world's first pig iron plant using the Tecnored technology at its steelworks in S Paulo state, the company said in a statement.
The 35mn-real ($15mn) plant will produce 75,000t/y of pig iron, some 10% of the 800,000t of pig iron, scrap metal and iron alloys the company uses in its production each year, the statement said. Construction will begin as soon as the company receives an environmental license for the project.
Tecnored technology, which was developed in Brazil in 1978 by a university in Rio de Janeiro, uses auto-reduction to agglomerate iron ore fines, coking coal, residues, sludge and metal waste to produce pig iron. The first pilot plant to show the commercial value of the process was built at Joinville in southern Brazil's Santa Catarina state in 1988.
Pig iron produced by the plant will guarantee low operational costs, lower electricity use and has the advantage of being a clean technology that will not pollute, As Villares president Joaqu Salazar said in the statement.
In addition the technology allows for smaller mills built on a modular basis without the need for large upfront capital expenses, Salazar added.
Timken names Salvatore Miraglia Steel Group President
The Timken Company announced today that Salvatore J. Miraglia, Jr. has been appointed president - Steel, effective August 15, succeeding W.J. "Tim" Timken, Jr. who has been named chairman of the company's board of directors.
Miraglia will have responsibility for the company's Steel Group, which reported $1.2 billion in sales in 2004, and he will report to the office of the chairman. He was previously senior vice president - technology.
EUs new law to help steel mills for disposal of Ferrous Sulphate
A new EU Directive effective from 17th January 2005, makes it mandatory on participants in the cement value chain to control levels of toxic chromium (VI). This directive is set to trigger heightened demand from the cement industry for the reduction of agents such as ferrous sulphate (FeSO4) and tin sulphate (SnSO4) that can reduce the toxic chromium (VI) to its non-toxic chromium (III) form.
FeSO4 is mainly used in the water treatment plants as coagulants and flocculants. Ferrous sulphate is generated as a by-product in H2SO4 based picling line in a steel mill which find difficulties in disposing it off as the demand from water treatment plant is limited. This new ruling would make the steel mill find a new and better paying market.
Erdemir's sale may be a hard to swallow
An article appearing in Thursday's New York Times stated that the privatization of Turkey's biggest steel producer, Erdemir, would be a difficult process, referring to workers' resistance culminating in the recent resignations of general managers, in addition to resistance coming from many different factions in society opposed to the sale.
Villagers, who depend on the steel factory have strung a banner between two trees with the words "Erdemir is our sweat" and "Each of us would die for it".
The article in The New York Times highlighted the saga that had been the centerpiece on various occasions in the Turkish media and caused many to question whether Erdemir's sale would be an even bigger challenge than the recent privatization of Trk Telekom.
"This is a real test for Turkey," said Turkish Privatization Administration (#304;B) Chairman Metin Kilci, whose organization hopes to orchestrate the sale of Erdemir by the end of the year and follow it with sales of other state assets, including an insurance company, a sugar factory and the Istanbul Hilton.
Ohio steelmaker cited for exceeding state air pollution limits
Republic Engineered Products Inc. allegedly exceeded state air pollution standards at its Lorain, Ohio, iron and steel plant, according to a U.S. Environmental Protection Agency citation.
Dust emissions from the plant allegedly exceeded standards as well as its state operating permit limits. The company could face a compliance order, a fine or lawsuit from the EPA.
Chile's CAP H1 net more than doubles on prices
Chilean steelmaker CAP said on Friday its net profit in the first half of the year more than doubled as prices for the raw materials it sells rose.
CAP said it earned $121.8 million in the January- June period, up from $54.7 million in the same period of last year. Revenues in the January-June period jumped 36.3 percent to $453 million.
"Improved profits in the first semester are thanks to full capacity production in both businesses and the strong increase in steel and iron prices," the company said. CAP said it had only begun to feel the impact of improved prices, which it said would be felt more in the second half of 2005.
Macarthur Coal booming
A collapse in world coal prices prevented Ken Talbot from listing his fledgling coal company in the late 1990s.
There was a lot riding on the float. Mr Talbot, a respected miner with more than 30 years' experience, had invested millions in the development of his Coppabella coal mine in Queensland.
The company, Macarthur Coal, finally listed in 2001. Today it is worth $1.3 billion and Mr Talbot's personal stake has climbed from about $58 million in 2003 to almost $500 million now. The resources boom has given birth to a new generation of mining millionaires.
US Steel announces management changes
United States Steel Corp. today announced two key management changes, effective August 1. Sharon K. Kelley has been named plant manager of the Midwest Plant in Portage, Ind., and William J. Kelly has been named plant manager of finishing operations at Gary Works. Both report to Gary Works General Manager Raymond R. Terza.
Sharon Kelley joined U. S. Steel in 1978 in the Quality Assurance Department at Gary Works. Throughout her career, she has served in a number of key operating, quality assurance, and sales and marketing functions, including senior area manager-steel producing, Gary Works; manager of quality assurance, Fairless Plant; general manager-commercial, tin products; and most recently, general manager-automotive sales and vice president of U. S. Steel International (USSI).Kelley succeeds John Price, who has been named general manager of business planning, a position at Pittsburgh headquarters. She has a Bachelor of Science degree in chemical engineering from Purdue University and a master's degree in business administration from the University of Pittsburgh.
William Kelly earned a Bachelor of Science degree in electrical engineering from Lehigh University in 1975. Following graduation, he joined U. S. Steel as a management trainee at Fairless Works. He subsequently held supervisory positions in electrical services, maintenance, and engineering before he was named plant manager in 1990. In 1993, he was named senior consultant for business process reengineering, a position at Pittsburgh headquarters, and was promoted to general manager of that group in 1996. From 2001 to 2004, he served as director of operations for the former Straightline business unit. He assumed his most recent position, division manager of sheet products at the Midwest Plant, in 2004. In his new position, Kelly oversees the finishing facilities at Gary Works, which include a hot strip mill, pickling lines, cold reduction lines, tin coating lines, and electrolytic and hot dip galvanizing lines. Kelly succeeds Frederick Jauss, who has been named general manager of Great Lakes Works outside Detroit.
As Villares reports 77% rise in Q2 profit
Brazilian steelmaker As Villares announced its second quarter net profit stood at 68.5mn reais (US$30mn), up 77% from the 38.6mn reais seen in the same period last year.
Net revenue grew almost 22% by the same comparison to 469mn reais.
At the end of June the company's net equity was 446mn reais.
As Villares, a subsidiary of Spain's Sidenor, makes non-flat steel products
