October, 17 2005
TATA - Bangladesh investment talks hit rock bottom
Most of the proposals made by the Indian conglomerate Tata Group to the National Board of Revenue NBR of Bangladesh government on revenue issues have been turned down as those were against the existing rules and regulations as well as fiscal policy of the government.
Following the rejection of proposals by the NBR, the much talked about biggest ever $2.5 billion investment by the Tata Group now hangs in the balance.
The Tata Group recently in its 29 point proposals on revenue issues has sought VAT exemption, duty free import, local market sale to be considered as export, and indefinite tax holiday status for most of its projects.
A wrap up meeting between the Tata Group officials and its Bangladeshi counterparts will be held at the Communications Ministry on Monday. Bangladesh Communication Secretary Mr Safiqual Islam and head of the TATAs negotiating team Mr Alan Rosling will be present at the meeting.
Indian automobile exports jump 36% in H1
Even as domestic sales went through ups and down during the first half of the fiscal, automobile exports from India grew by 35.87 per cent compared to the same period in the last fiscal. According to the Society of Indian Automobile Manufacturers SIAM, the total automobile exports touched 406,880 units in the first six month of the current fiscal as against 299,470 units in the same period last fiscal.
The increase in exports is mainly on account of motorcycles, which grew by 56.35 per cent to clock 188,117 units during the period as against 120,315 units in the same period last fiscal. Passenger car exports grew by 14.99 per cent at 87,463 units in the fist half of the fiscal as against 76,061 units in the same period a year ago. The commercial vehicles segment also registered impressive growth of 43.45 per cent growth in exports at 18,095 units as against 12,614 units in the same period last fiscal.
Vikash Metal plans IPO for sponge iron unit
It is reported that Vikash Metal & Power Ltd of the Kolkata based Impex group is planning to invest Rs 134 crore in West Bengal to set up an integrated steel plant and captive power unit at Poradiha in Purulia district by issuing an IPO to raise 25 crores to part finances this project. The promoter group is infusing Rs 34 crore for the project and the rest will be borrowed from banks and financial institutions.
It plans to expand the capacity of its sponge iron unit from 65,000 ton per year to 13,000 ton per year and setting up a captive power plant of 10 MW in addition to a billet caster, steel rolling mill and ferro manganese plant
The new sponge iron unit would start production by the end of January 2006, the ferro manganese plant is also expected to start production by March 2006 but the captive power plant is likely to start operation in early 2007
Vizags Daspalla sells wire rope unit to Poddar Group
It is reported in an Indian daily that Visakhapatnam based Daspalla Group has sold away its wire rope manufacturing unit, Visakha Wire Ropes, to Jharkhand based Poddar Group for Rs 5 crore.
Daspalla Group had taken over Visakha Wire Ropes unit from a private entrepreneur in 1997 at a cost of Rs 2 crore. Later, they invested about Rs 5 crore to expand the capacity from 1,000 tonnes annually to 9,000 tonnes. During last fiscal, the unit clocked a turnover of about Rs 30 crore and posted profits of Rs 75 lakh.
It is reported that Daspalla Group has decided to sell the unit due to heavy fluctuations in steel trading and the promoters' lack of knowledge about the business
ThyssenKrupp targets 10% more sales in Asia within 5 years
ThyssenKrupp AG board member Mr Olaf Berlien told a German daily that the steel conglomerate wants to achieve annual sales in the Asian region of at least Euro 5 billion within the next five years from thee current levels of Euro 3.7 billion
He said that once the goal is achieved, ThyssenKrupps sale to Asian region would account for about 10% of the overall revenue.
ThyssenKrupp has earlier announced its intention to increase sales in Japan to more than Euro 1 billion by increasing supplies to Toyota Motor Corp
Nippon Steel to deepen production cut as domestic inventories all time high
Nippon Steel Corp the world's third biggest steel maker will deepen production cuts in the second half of the business year ending in March to try to lower domestic inventories. Nippon Steel will cut production by 800,000 tonnes in the second half, having cut production by 500,000 tonnes in the first half.
Mr Shoji Muneoka, VP of Nippon, had told press in an interview on September 30 the company would maintain a plan to cut output by 500,000 tonnes in the second half, when he expected demand to strengthen from the first half.
It is reported that Japanese domestic inventories of steel sheet at the end of August were 4.65 million tonnes, the highest in four years. Inventories were 15 percent higher than a year ago and some 800,000 to 900,000 tonnes above suitable levels.
Nippon Steel's output totaled 30.43 million tonnes in 2004, accounting for nearly 30 percent of total Japanese production of 112.9 million tonnes.
Arcelor increases stake in Brazilian stainless operation
Arcelor has entered into a definitive agreement with two Brazilian pension funds over the acquisition by Arcelor of Acesita SA of 25 percent of the Brazilian stainless steel producer's voting capital and 8 percent of its total capital stock.
As a result of this agreement, Arcelor's subsidiary Usinor will pay slightly more than $20 per Acesita share to Caixa de Previdcia dos Funcionios do Banco do Brasil and Fundao Petrobr de Seguridade Social under the terms of the call option exercised by Usinor late last month
Acesita is one of the top stainless steel producers in the world.
POSCO to increase production of auto grade steel to 6.5 million tons
POSCO announced that it will increase its annual production of CR steel for autos to 6.5 million tons by 2008 by adding new production lines at its Gwangyang. POSCO plans to expand its annual capacity from the current 4.3 million tons to 5.8 million tons in 2007 and 6.5 million tons in 2008.
The fifth and sixth continuous galvanizing lines are scheduled to be built at the Gwangyang Mill this year and next year, respectively. POSCO has also began the construction of additional facilities to produce more tailored welded blanks, which require high technology and are preferred by automakers. POSCO's TWB production is thus expected to reach 5.5 million units per year in 2006.
POSCO expects 70 percent of its sales of steel sheets for autos to come from the world's top 15 carmakers. It hopes to increase its supply to Volkswagen AG up to half a million tons by 2007 and more than 50,000 tons each to Toyota, Fiat and Peugeot-Citroen.
The company said earlier it will focus on development of eight strategic products including steel sheets for autos and flat rolled magnetic steel sheets. POSCO aims to boost the sales proportion of these products to 42 percent this year, 52.1 percent next year, 60.6 percent in 2007 and nearly 80 percent in 2008.
Thai Unique Coil Center will expand stainless capacity
Thai Unique Coil Center TUCC will increase the stainless steel capacity to 70,000 tons per year. The Samutprakarn plant near Bangkok, has a current capacity of 49, 000 tons per year and the expansion will be completed in 2 phases.
After completion of the first phase, the plant will have an annual capacity of 60,000 tons. This phase is said to be completed in the first quarter of 2006.
The second phase is likely to start later next year. At present, the company's main market is the domestic. But now the company is intending to develop some overseas markets.
Coke oven repairs effect Q4 performance of Pakistan Steel
The Pakistan Steel Mills Corporation earned net profit to the tune of Rs 1320 million during the Q4 of the financial year 2004-05 as against Rs 1424 million in Q3. The capacity utilization of Steel's production was down to 76% in Q4 as against 93% in Q3 due to repairs of coke oven batteries
The net sales and other incomes also fell down to Rs 7506 million due to the low production, as against the sales of Rs 7952 million in Q3
The net profit for the whole year 2004-05, has been provisionally assessed at Rs 6000 million as against Rs. 4852.327 million in last financial year over an assessed total sale of Rs 32,023 million
The Corporation was carrying surplus cash and bank balance of Rs 11,125 million at the close of the 4th Quarter, as well as at the close of the whole year 2004-05.
Jiugang aims to increase 2006 capacity to 5 million tonnes
As the new Chinese national iron and steel industry policy states that a company only receive government support if their annual capacity exceeds 5 million tons, Jiugang held a mobilizing meeting earlier this month to help in the achieving of the 5 million tons annual capacity.
The company said that their current "three 5 million" plan was continuing smoothly and all objectives for the first nine months of the year has successfully been completed. The new targets for 2006 involves the target to produce 5.7 million tons of pig iron, 6.15 million tons of crude steel and 6 million tons of finished steel
Shougang Group to invest $2.4 billion in Thai steel mill
It is reported that Shougang Group is expected to invest $ 2.4 billion to build a new steel mill in Thailand with an annual capacity of four mln tons. It is also reported that Shougang has already reached a preliminary agreement on the project.
Thailand's largest steel firm, Sahaviriya Steel Industries, is likely to invest jointly with Shougang, the report said.
Shougang Group, formerly known as Capital Iron and Steel Co is the parent of Beijing Shougang Co Ltd and is relocating its steelmaking operations out of Beijing to neighboring Hebei province
Leak from Mittal Steel US plant spills oil into Cuyahoga River
A faulty pump at a steel plant spilled about 500 gallons of oil into the Cuyahoga River just south of downtown Sunday. Mittal Steel workers discovered the leak about 4 AM in a pump that delivers oil from a tank to a blast furnace, company spokesman Mr Dave Allen has said.
Floats were used to contain the oil on the water, Mr Allen said. Vacuum trucks started removing the oil about four hours after workers discovered the leak and were expected to continue overnight.
The Cuyahoga may be best known as the river that caught fire when an oil slick burned in 1969.
Chilean steel maker CAP issues $133 million 8 year local bond
Chilean integrated steel manufacturer CAP SA on Friday placed about $133.0 million in local peso denominated and inflation indexed bonds, according to the Santiago Stock Exchange. CAP placed the eight-year bonds with an interest rate at 4.40%.
The proceeds from the bond issue will be used to refinance debt and to finance investments.
CAP is Chile's only integrated steel manufacturer.
Nippon to build environment friendly coke ovens
As part of the Japanese national project Super Coke Oven for Productivity and Environment enhancement in the 21st century, Nippon Steel Corp is carrying out a plan to build an environment friendly coke furnace with 1 million ton a year capacity.
The new furnace will be built in Nippon Steel's Oita Steelworks. With the new furnace, this plant will decrease the quantity of coking coal used in production and increase the efficiency.
Steel structure houses in quake affected areas in Pakistan
Mr Jahangir Khan Tareen, a minister in Pakistan government approved a plan of tented villages cladding on frame with corrugated galvanized sheets, which provide better protection to quake affected in winter season. He said that Pakistan Steel Mills Corporation would provide full assistance in manufacturing of steel building structure
He also inspected a model of steel structure temporary house build by a Pakistani engineering firm on request of the army. This state of art frame design in manufacturing system can produced small house buildings in hours.
Agip KCO awards Caspian venture to Flours NCC
Fluor Corporation has announced that a Fluor led joint venture known as North Caspian Constructors NCC has been awarded the onshore construction of Kashagan Experimental Program facilities by Agip KCO, a company wholly owned by Eni through Agip Caspian Sea BV, the single Operator of the appraisal and development operations in the Kazakhstan sector of the North Caspian Sea. Construction is due to commence in October 2005 with completion scheduled for September 2008.
Kashagan is the largest oil field discovered in the North Caspian Sea PSA contract area. It is located offshore, about 80km from Atyrau and extends over a surface of approximately 75km by 45km. Kashagan is one of the largest oilfields discovered over the last 30 years.
Development of Kashagan represents one of the greatest current challenges of the petroleum industry given the following characteristics
1. Deep, high-pressure reservoir
2. 16-20% sulphur content with associated production of hydrogen sulphide
3. Shallow waters that range from 3 to 4 meters and freeze from November to March and sea-level fluctuation during the rest of the year
4. Wide temperature variations from -30C to +40C
5. A very sensitive environment with a variety of internationally protected species of fauna and flora.
Vietnamese Saigon Cable to place order for machinery
SACOM GD Mr Do Van Trac, who is also chairman of the new cable company Saigon Cables Corp, said procedures are underway for the construction of a cable factory in Long Thanh Industrial Park in Dong Nai Province.
"We expect the factory to begin operating in March and we are planning to open letters of credit at the bank to purchase machinery and equipment for our production lines," Trac said.
The company wants to achieve a turnover of more than $19 million in 2006, $42 million in 2007 and $52 million the following year.
Malaysia Steel set to perform better
MALAYSIA Steel Works (KL) Bhd will fare better than most of its peers amid the hazy outlook of the steel industry, said investment adviser Asia Analytica Sdn Bhds
The sharp rise in steel prices between 2002 and 2004 is primarily to blame for Malaysia Steels lower margins during this period. But Malaysia Steels latest earnings results for the second quarter of 2005 bucked the trend weve witnessed for other steel-related companies. The management is confident that it remains on track to achieve the projected profits of RM25.6 million this year.
In its year ended December 2004, the company made a net profit of RM24.1 million on turnover of RM280.8 million.
Sales in 2006 till 2008 will be lifted by the completion of fresh capacities while the new section mill products will also help pad margins. Malaysia Steel is spending RM100 million to RM120 million on a new 150,000-tonne section mill plant to broaden its product range. The plant will produce different grades of channels and angles used in the manufacturing, engineering and oil and gas sectors. Production is due in the second half of 2007.
To cater for the needs of the new plant, Malaysia Steel will expand its billet capacity to 450,000 tonnes by the second quarter of 2006. It also aims to increase exports including about half of its eventual section mill output.
Colorado residents challenge antiquated US mining laws
US governments antiquated mining laws allow Bush administration to sell 155 acres of public land "Red Lady" having deposits of molybdenum to a mining company for less than $900.
The sale was made possible by an 1872 mining law that lets the government sell, for just $2.50 or $5 an acre, public lands that contain minerals. This land sale, known as a patent, gives companies absolute title to the property.
Since October 1994, Congress has voted each year to renew a temporary ban that prevents companies from submitting new patent applications to buy more government land at rock-bottom prices. That left the Interior Department's Bureau of Land Management with 405 applications it had received before October 1994. Those applications came from companies looking to buy land managed by the BLM and the Forest Service.
The Bush administration and Congress have made a push to approve the remaining applications - approximately 200 - that were unresolved when President Bush took office. Under the Bush administration, 139 were approved and 50 remain to be considered.
Getting a patent is not easy. Slightly more than one-third of the 405 applications were withdrawn or rejected by the Bush and Clinton administrations, often for lack of supporting paperwork. Companies have to convince the Interior Department that the land has a valuable mineral deposit and it can be mined at a profit. Department officials say companies typically spend about $10,000 to $15,000 per acre trying to document that it is economically viable to mine there.
Once a patent is granted, officials say, the law does not let them challenge a company if it drops its plan to mine at a site that could be resold as valuable real estate. The department acknowledges cases in which lands that companies had patented for mining were used for private, commercial development
ThyssenKrupp wants to sell auto business
German steel and engineering group ThyssenKrupp wants to sell its automotive division either as a whole or in parts as per a report in a German magazine. Its US subsidiary ThyssenKrupp Budd is at the top of the selling list and possible buyers include Canadian auto supplier Magna or Mr Wilbur Ross.
However, a ThyssenKrupp spokesman told press that he did not know of such a plan, adding that the topic was new to him.
ThyssenKrupp's automotive division garnered sales of $2.5 billion in the third quarter that ended in June and its income before tax and minority interests was 20 million euros.
China courts Latin American nations in quest for raw materials
China's burgeoning appetite for raw materials and quest for export markets has sparked a boom in Latin American countries. In the past five years, China's trade with Latin America has grown at an annual rate of 42 percent, reaching nearly $22 billion last year.
Chile and Peru sell, minerals & metal mostly copper, to China amounting to almost 10% of their total exports and roughly 8 percent of exports from Cuba and Argentina are accounted for China, according to a report last month from the Economic Commission for Latin America and the Caribbean.
Latin Americans are also expecting a flood of Chinese investments. Billions of dollars are promised, and in recent years more than half of China's foreign investments have been directed at Latin America to acquire natural resources. Anticipation over the new Sino-Latin American ties reached a peak last November when Chinese President Hu Jintao toured Brazil, Argentina, Chile and Cuba and reportedly pledged that his country would invest $100 billion in the region over the next decade.
South American presidents hailed the developing relations, which come as China has edged out the United States as the world's largest consumer of copper, nickel, aluminum and iron ore.
