November, 27 2005
Welspun - Dares to commit
Welspun City, located at Anjar Kutch, was inaugurated by Gujarat CM Mr Narendra Modi on Saturday 26th November 2005. Welspun, the third largest producer of cotton towels in the world is also a leading steel pipe maker. Dare to commit is the slogan of Welspun to maintain its quality, and delivery in time.
It has a capacity to make welded steel pipes from to 100 in this premise, including ERW, Helical and longitudinal and Longitudinal SAW pipes. The ERW pipes are galvanized, and there is coating facilities for the SAW pipes. It has a capacity of 1.5 million tonnes. Apart from pipes it has two modules of sponge iron plant which makes 200 metric tonnes per day. The sponge iron is converted into TMT bars for the construction industry.
These facilities fall under the Phase I of the project with an investment of 2,100 crores and has been completed in a scorching pace of 9 months. Welspun has also planted more than 125.000 trees in the first phase of its targeted 500,000 tree plantation program.
The second phase will put up a plate mill which can roll 5 meter wide plates, the widest so far planned in India at an investment of about Rs.4,100 cores, and for 2.5 million tonnes capacity
Gracing the occasion were representatives of who is who in the pipe world, specially flown in from all quarters of the world, and India. Notable amongst them are, the API specialist Dr Malcolm Grey of Micro alloying, Mr John Highams from Bredero Shaw, Mr Don Gardner from Oil country Technology, Mr Steve Kim from POSCO, Mr Tehrani from Narfoam Kar, Mr Malkki from Europipe, Ms Marie France from Soconord, Mr Carsten from ThyssenKrupp, Mr Venkat from Mittal Steel and Mr Amaren from Aurohill Moscow, to mention a few.
Welspun has supplied steel pipes to GAIL, ONGC, SHELL, SAIPEM, BRITISH GAS, to name a few users including the deepest pipe laid in the Gulf of Mexico, USA. They supply the towels to Wal-Mart, JC penny, Nautica, Tommy Hilfiger to name a few.
Adhunik group plans JV for coal mining in Australia
Adhunik group is planning to acquire coal equity and form a JV for coal mining in Australia for assured supply of coking coal for its steel plants. The group has estimated an investment of Rs 100 crore for captive coal and iron ore mines to create the required backup for assured supply of the raw material. The investment would be in addition to the proposed Rs 440 crore for Rourkela company, Adhunik Metaliks Ltd's expansion program.
"We are holding negotiations with Australian mining companies to form a joint venture to develop virgin coking coal mines in Australia," Adhunik group director Mr Nirmal Agarwal told PTI. "We will buy small stake 10-15% in an existing mine for assured supply of coking coal. We think the total investment for Australia would be Rs 50 crore," Mr Agarwal said.
Adhunik group will soon have two captive iron-ore and coal mines in Orissa and Jharkhand. The total capacity of both iron-ore and coal captive mines would be around 100 million tonnes.
Chhattisgarh CM invites Chinese investment
Chhattisgarh CM Dr Raman Singh met representatives of Xingxing in Beijing and invited them to invest in his state. He outlined immense possibilities for value added industries and favorable conditions prevailed in the state for setting up ancillaries of steel and mineral based industries.
Dr Singh pointed out that the state has huge stocks of high quality iron ore, and coal
Mr Iranis views on National Steel Policy
Mr JJ Irani director of TATA Sons and ex MD of TT Steel is reported to have said in an interview that the NSP does not address the ownership issue of the raw material and in his opinion the high grade ore should be reserved for steel units in India and only 50-55% Fe grades, available in plenty in India but still higher in iron content than Europe and US, should be allowed to be exported
He is also reported to have said that in 1960s the then steel minister had promised wed be 100 million tonnes by the year 1990 and is not sure that India will be able to achieve 100 million even in 2020 as many of the MoUs would not materialize
NALCO acquires coal and bauxite mines for further expansion
State owned National Aluminium Company Limited (NALCO) has decided to acquire two mining blocks each of coal and bauxite in Orissa as part of its Rs 4,100 crore expansion program. Stating this NALCO Director, P&A Mr Ashok Ranjan Ray told newsmen on the sidelines of a national symposium on metal industries- Metal Tech 2005, that while the union ministry of coal and mines had already allotted two coal blocks to NALCO in Orissa to meet their entire captive consumption of 1.4 million tonnes per annum, they were awaiting the central clearance for one of the two bauxite mining blocks after receiving the sanction for the other.
At present we are engaged in developing both the coal blocks to suit our purposes and it would take about 20 months before the extraction starts," Mr Ray said.
Mr Ray said the Rs 4,100 crore programs which began in October last were likely to be completed within 50 months for enhancing NALCO's production capacity in all departments. In the post expansion scenario NALCO's Bauxite production capacity would be increased from the present about 5 million tonnes to 6.3 million tonnes, alumina production would go up to 2.1 million tonnes from 1.3 million tonnes per annum, aluminium to 0.46 million tonnes per annum from 0.12 million tonnes per annum
Madhucon bags Rs 84-cr road project
Madhucon Projects Ltd has announced that it has bagged Rs 83.87-crore worth road projects from Madhya Pradesh Road Development Corporation Ltd for the development of State highway-23 between Guna and Fatehgarh and State highway-14 between Bioara and Maksudangarh and Sironj.
TopCan you make steel? Enter the steeluniversity.org challenge
IISI has announced the worlds first virtual-steelmaking challenge. Competitors will use the secondary steelmaking module of IISIs award winning steeluniversity.org website to make a specific grade of steel. The winner will receive a cash prize of 250. The prize may be presented at a major IISI meeting at a venue and date to be decided in consultation with the winner. IISI will also cover expenses for the winner to attend the presentation.
The competition is open to anyone who has access to steeluniversity.org. You must register on the site before you can enter the competition. Registrations open on 23 November. Multiple entries will be accepted. Group entries are also possible. Only one member of the group should register.
At 12 noon GMT on 30 November, a specific grade of steel will be announced on steeluniversity.org. Competitors will then have 24 hours to make this grade of steel. The winner will be selected based on the criteria that the steel must meet the specified composition, the ladle of liquid steel must be delivered to the correct casting machine at the requested time and temperature and with the required inclusion content and the cost must be as low as possible.
This article was also published on November 6th and is being reproduced for the benefit of people interested in taking part in the competition
IPSCO Tubular fighting Chinese trade practices
IPSCO Tubulars, Camanche is part of a group of companies seeking relief from the US government from a surge in steel pipe imported from China and representatives from the group, including Mr Scott Barnes, VP Commercial, for IPSCO, will be in Washington on Tuesday for a remedy hearing with Trade Police Staff Committee. At the Tuesday hearing, the group will ask that President Mr Bush cap the amount of standard pipe China can export to the U.S. at 90,000 tons per year, with a 5% increase in the cap every year for five years.
Mr Barnes said China exported about 90,000 tons of standard pipe to the United States in 2003, but is on pace to export more than 350,000 tons to the U.S. this year. The influx of Chinese made standard pipe and the undervaluation of Chinese currency has allowed China to sell standard pipe cheap in US markets, which has hurt US manufacturers, Mr Barnes said. He added that IPSCO has been able to minimize the impact on their business by focusing on other products, but other manufacturers are in danger of having to close plants.
When China joined the World Trade Organization, part of the agreement to allow the country to join was a provision that allowed US companies to seek relief from the US government if their business was negatively impacted by Chinese trade practices.
Sinosteel and Minmetals Yingkou Medium Plate Co sign agreement
Sinosteel and Minmetals Yingkou Medium Plate Co Ltd signed a strategic cooperation agreement in Yingkou on November 22. Sinosteel president Mr. Huang Tianwen and chairman of Minmetals Yingkou Medium Plate Mr. Li Mingke signed the agreement on behalf of each party.
Sinosteel Trading general manager Mr Li Yi signed the iron ore supply & purchase agreement with the general manager of Minmetals Yingkou Medium Plate Mr. Zhao Song.
Minmetals Yingkou Plate Co Ltd. is invested by Yingkou Medium Plate Plant, China Minmetals Group and five private enterprises were established in June 2002, with annual production capacity is 1.5 million tons.
BMG Metals to expand at four locations
BMG Metals Inc, a Richmond based family owned metal distributor has announced this week that it will open a new branch, expand two of its existing facilities and acquire a metals distribution warehouse in eastern Henrico County.
BMG plans to open a new distribution facility by January in Wilson, NC for stocking aluminum and carbon and stainless steel products, as well as mill and industrial supplies, and serve eastern North Carolina.
At its Chesapeake distribution facility, the company is opening a new shop that will allow it to process carbon and stainless steel plate with new cutting equipment. Customers of that facility include the shipbuilding industry.
In Lynchburg, BMG will buy a building next to its existing operation and will be used as a depot for various products.
In eastern Henrico, the company should close in early December on the purchase of warehouse, which will allow it to quadruple its inventory of aluminum extrusions and stainless steel and aluminum sheets.
The purchase should position the company better to compete with larger suppliers, BMG President Mr Kingsbery Gay said. BMG was founded in 1963. and is owned and operated by brothers Mr Kingsbery Thomas and Mr William Gay.
Court adjourns auction of former Pakistan PMs steel units
Lahore High Court has adjourned, till December 1, the hearing of an appeal challenging the decision to auction Ittefaq Groups four industrial units to return Rs 3 billion in bank loans acquired by former prime minister Mian Nawaz Sharifs family. Eight banks had given Rs 3.11 billion in loans to the Ittefaq Group of Industries between 1982 and 1998. In most cases, the loans were not returned
The petition was filed by the National Bank of Pakistan and other banks seeking the sale of Ittefaq Foundries, Brothers Steel, Ittefaq Brothers and Ilyas Enterprises as Mr Nawaz Sharifs family had surrendered these units against bank loans.
Mian Meraj Dins family and the Colony Group of Industries challenged these orders, saying that it was in violation of the Companies Ordinance and the industrial units could not be auctioned. Earlier, the court had cancelled a Rs 2.15 billion deal (for three units) between Al-Rehmat Group of Industries and the sales committee on October 12, 2004, and asked the shareholders counsels to prepare a list of terms and conditions for the auction by mutual consent.
Indonesian company to supply 6 million tonnes of thermal coal
Prima Multi Artha, an Indonesia-based trade and investment company, has reached initial agreements with Beijing based Datang International Power Generation Co Ltd, to supply some 6 million tons of thermal coal to its three power plants along the east coast. The deal is the Indonesian firm's first attempt to cash in on China's surging energy demands.
PMA said their competitiveness lies in cheap transportation costs and high coal quality, notably its low sulphur content. Since China's coal reserves are mostly located in the north of the country, insufficient transportation has created a bottleneck in supplying coal-fired power plants in economically-developed South China, keeping the prices high.
Shipping cost from Indonesia to Ningbo, a port in East China's Zhejiang Province, will be $12 per ton of coal, while the transportation cost from Datong, one of China's biggest coal producing bases, to Ningbo, which involves both rail and shipping, is at least $2.5 more
Pakistan invites overseas investment in coal mining
Pakistan government has unveiled a plan to generate 20,000 megawatt electricity by using coal till 2019 and is giving special attention to exploiting indigenous energy resources
Federal Minister of Petroleum and Natural Resources Mr Amanullah Khan Jadoon, while speaking at a breakfast meeting he hosted for delegates representing world mining industry and financial institutions gathered in London to attend the international conference entitled Mines and Money-2005, said that the government had introduced a liberal mining policy for foreign investors supported by investment-friendly regulatory and fiscal regimes. There was no restrictive minerals list for foreign investors or any requirement of mandatory local participation besides repatriation of investment and profits, he added.
He invited the world mining industry and financial institutions supporting the mineral projects to harness the opportunities available in Pakistan in the metallic and non-metallic minerals, coal, oil and gas for mutual advantage.
Egyptian Iron & Steels profit surges
Egyptian Iron and Steel made a net profit of 49.75 million Egyptian pounds ($8.64 million) in the third quarter of 2005, 4.6 times what it made in the same period of 2004
Net profit in the July-September quarter of 2004 was 10.78 million pounds, it said.
Ukraine looking for support on Brody Plock pipeline
Ukraine is seeking support from Poland and Slovakia for a project that would enable imports of Caspian Sea crude oil to Europe via Ukrainian territory. Ukrainian President Mr Viktor Yushchenko, following talks with Polish counterpart Mr Alexander Kwasniewski, said both countries agreed to go ahead with building a Brody-Plock pipeline to handle the imports. Ukrainian PM Mr Yuriy Yekhanurov, on a visit to Slovakia, sought Slovakian investments for the same pipeline
Poland, Slovakia, the Czech Republic and possibly Ukraine, all currently relying on Russian oil imports, may become immediate consumers of Caspian oil that will moved via Odessa-Brody oil pipeline. The efforts also underscore Ukraines determination to launch supplies of Caspian oil via Odessa-Brody in order to cut dependence on Russian oil, which accounts for 80% of its annual demand.
Odessa-Brody, capable of moving 12 million metric tons of oil annually, was completed in August 2001, but stayed idle for almost three years as Ukraine then had failed to match demand with supply. This and other reasons, including political pressure from Russia, forced Ukraine to start moving Russian oil via Brody to Odessa route in October 2004 for exports by oil tankers via the Black Sea. Odessa-Brody has to supply at least 5 mln metric tons of oil annually in order to make profits, but potential supplies have so far been limited at 4 mln tons, including 2 mln from Azerbaijan and 2 mln from Kazakhstan.
Mr LN Mittals Alleny Finance to sue former partner for damages
It is reported that Allenby Finance, a company based in the British Virgin Islands and owned by Mr LN Mittal, is suing Dallah Albaraka, a group based in the Isle of Man, a former business partner in the High Court in London in a dispute over an investment in a Zambian copper project for damages of $3.7m
The dispute centers on a "funding agreement" signed in October 1997. Under the agreement, Allenby Finance, Dallah Albaraka and a third party, Gokul Binani, committed funds to acquire two copper mines in Zambia from the state-owned Zambian Consolidated Copper Mine. Relations between the partners turned sour after Dallah Albaraka allegedly withdrew a bank facility it had secured for the investment.
A spokesman for Dallah Albaraka said: "Dallah Albaraka (Ireland) Limited confirms it is involved in litigation with Allenby Finance Limited." A spokeswoman for Mittal Steel declined to comment on the case but said: "Allenby Finance is a vehicle owned by Mr Mittal. It has nothing to do with Mittal Steel."
