May, 11 2006
TATA Steels updates on expansions
TATA Steel has announced that its Greenfield steel projects of 6 million tonnes in Orissa 5 million tonnes in Chhatisgarh and 12 million tonnes in Jharkhand are progressing as per the schedule. TATAT Steel plans to commission the first phase of 3 million tonnes plant in Orissa by 2009, Chhatisgarh by 2010 and Jharkhand by 2011.The three projects will add 23 million tonnes to its existing 5 million tonnes.
Mr Muthuraman during a news conference said that these projects would be financed through internal accruals and debt. He denied any plans to come out with rights issue to finance the projects.
Mr B Muthuraman announced that the work in Orissa is all set to take off as per the plan and that TATA Steel has acquired 3,000 acres land for Rs 70 crores. He said The construction in Dubri will start in the next two months. He added that the company would also finalize and place orders for a 4,000 cubic meter BF, a sinter plant, coke oven battery, slab caster and other equipment by June-July. The project had run into trouble in January when police shot dead nine tribesmen after a protest against land acquisition for the project turned violent in Jajpur.
Mr Muthuraman said that the company has only earmarked the site for the plant in Jharkhand and would start the process of acquiring around 5,000 acres of land in the state.
On the rehabilitation and resettlement of families displaced due to these projects in Orissa, Chhatisgarh and Jharkhnad, Mr Muthuraman said that the company had already implemented a program to ensure that the displaced families would get adequately compensated for the land and livelihood lost. He added that the R&R program would ensure that the annual earnings of the displaced families increase every year. The company said that goal would be achieved by making the family members employable by providing vocational training as per their eligibility. TATA Steels projects will displace around 700 families in each of the three states. Mr Muthuraman said that the company will adopt all the affected families. Each one of them will be called Tata Steel Family and we will make sure their income levels are better or equal as before. We will monitor each family every month and they will be under our care he said.
Mr Muthuraman also informed that the Dhamra Port Company, a TATA Steel and L&T JV, has already completed acquisition of land for the port and the land for the corridor, linking the port from Bhadrak to Dhamra, has also been acquired. Ha added that L&T has been awarded the engineering procurement and construction contract for the port project. The port will be built to accommodate cape size vessels of 160,000 tonne.
TATA Steel is also investing Rs 4,500 crore to expand its Jamshedpur plant capacity by 1.8 million tonne, which should be completed by August 2008.
SAILs Durgapur Steel Plant set to expand
Steel Authority of India Ltd is planning a major revamp of its production and marketing strategy, with the aim of increasing the share of value added long products in its product mix. SAIL is putting up new mills at its Durgapur and IISCO plants to increase production of long products, including low diameter bars for the domestic retail segment and earthquake resistant bars for the entire construction segment.
SAILs director personnel & DSP's officiating MD Mr SK Roongta told a group of reporters "We want to increase the share of our finished products to capture retail and commercial construction markets. Our Durgapur Steel Plant is targeting to increase the share of finished products from the existing 46% to around 97% of the total output by 2011-12. This would be achieved by increasing the output of finished steel."
He added that of the Rs 2,800 crore expansions plan of DSP, about Rs 1,300 crore would be spent on setting up new mills for producing finished products like bar and wire rod, medium structural and seamless tubes. While total hot metal capacity of DSP will go up to 3.2 million tonne from the current 2.1 million tonnes by 2011-12, finished products capacity of the three new mills will be 2 million tonnes.
Asbestos laden SS Blue Lady on final journey to Alang
Despite controversy over around 900 tonne of asbestos in the ship and the resulting danger to ship breaking workers, SS Blue Lady has set sail from Port Klang, Malaysia and is expected to arrive at Alang around June 1. Greenpeace had included the Blue Lady on a list of 50 ships which the environmental advocacy group fears might not be decontaminated before dismantling.
As per reports it was sold by Star Cruises to Mr Lokman Hossain a Bangladesh national who runs the Chittagong based Jiri Sudebar Steel Re-rolling Mills and who was denied permission by Bangladesh government to break the ship in Bangladesh. Now it is reported to have been bought by Regent Shipping for $17 million and is expected to salvage steel equivalent to almost 90% of ships weight of 46,000 tonnes.
SS Blue lady was once the largest ocean liner in the world. The ship was built in 1961 for Le Havre-Southampton-New York service. Back then it was known as France. It was the largest ocean liner built after World War II and the third largest ocean liner in the world at that time. As one ship was decommissioned and another sank in 1972, France was suddenly the largest ocean liner in the world. In 1974, the French government withdrew the ship's operating subsidies and she was laid up at the quai d'oubli or quay of the forgotten at Le Havre.
She was sold in 1979 to Knut Kloster, owner of then Norwegian Caribbean Lines, now Norwegian Cruise Line. Under Norwegian supervision and the new name Norway, the ship entered service on seven night cruises from Miami to the Caribbean in 1980. Norway didnt lose its title as largest passenger ship in the world before 1988 when the Sovereign of the Seas was build. But a few years later, Norway regained the title after adding more decks. In 1995 the ship lost the title permanently, this time to the "Sun Princess". The 'Norway' is no longer owned by Norwegian Cruise Line as one year ago she was transferred back to Malaysia based Star Cruises, the parent company of NCL. The transfer happened as Star Cruises intended to utilize the ship in a new venture.
SAILs DSP to supply 120,000 wheel to Railways
Steel Authority of India Limiteds Durgapur Steel Plant aims to supply 120,000 wheels for Indian Railways coaches by 2012. SAILs director personnel & DSP's officiating MD Mr SK Roongta told a group of reporters "We have planned to supply 120,000 forged wheels to Indian Railways from the current levels of 65,838 wheels." Mr Roongta told that to augment the capacity of the Wheel and Axle Plant, DSP would commission fourth rim spraying machine and two Brand Saw machines.
DSP is also in talks with the Railways for developing high-grade railway wheels and axles that would be required for the rolling stock on the proposed dedicated freight corridor of the Indian Railways. Mr Roongta said "We have the expertise and we are already supplying broad gauge and meter gauge loco wheels to them. Even when the metro Railway's requirement would increase, we are open to manufacture them if the demand is commercially feasible."
Mr Roongta also pointed out that the price realization from wheels and axles is much higher compared to other products. While hot rolled steel commands an average price of Rs 24,000-30,000 per tonne, wheels and axles get approximately Rs 65,000-70,000 per tonne.
Mr Roongta informed that the wheels produced at DSP's Wheel and Axle Plant were tested at TTCI, Pueblo, Colorado USA and were certified as among the best in the world.
DSP is the only facility in the country which can make forged wheels for rolling stock besides supplying forged loose axles and wheel and axle sets.
POSCO to save 20% infrastructure cost through captive port.
Mr Soung Sik Cho CMD of POSCO India told newsmen that the Company has sought the help of Goa based National Institute of Oceanography for Environment Impact assessment to set up a captive port at the Jatadhari river mouth 10 km from the Paradeep port. POSCO India has also sought the assistance of Indian Consulting Engineering Services and Denmark based Danish Hydraulic Institute besides NIO to conduct survey work for EIA.
Mr Cho said they would manage to save 20% of the infrastructure cost with the establishment of a new captive port. ''We cannot think about large-scale steelworks and a captive port separately as a captive port is essential for a large scale steelworks and must be available for use at all times'' Mr Cho said.
Ispat Industries announces 2005-06 results
Ispat Industries Ltd has announced the audited results for the quarter ended March 31st 2006 & for 2005-2006.
IIL has posted a net loss of Rs 1531.40 million for the quarter ended March 31, 2006 as against net profit of Rs 380.00 million Q4 of 2004-05. Total Income, net of excise, is Rs 12911.50 million for Q4 of 2005-06 as against Rs 11265.40 million in Q4 of 2004-05.
IIL has posted a net loss of Rs 8126.70 million for 2005-06 as against the net profit of Rs 6960.60 million during 2004-05. Total Income, net of excise is Rs 50107.30 million for 2005-06 where the same was at Rs 61128.90 million in 2004-05.
The Board of Directors of the Company has not recommended any dividend for the financial year 2005-06.
DS group sets up a CR & coating facility in Tripura
As part of its diversification plans, food and beverage major DS Group has set up a steel plant in Agartala, Tripura in North East India. The Rs 250 crore steel processing complexes will produce CRFH, CRCA and galvanized plain coils. The plant has been producing galvanized plain and corrugated sheets since the commissioning of the Rs 10 crore first phase in May last year.
Mr AK Sarkar senior VP of steel project said "After commissioning the second phase of the steel plant in July, the capacity would be 150,000 tonnes per annum."
In the Rs 200 crore third phase, expected to be commissioned by 2010, the plant will also produce galvalume sheets and coils and color coated sheets and coils.
POSCO to leave out densely populated areas due to protests
It is reported that POSCO could exclude some portions of land in three of the panchayat for its proposed steel plant area if protests over displacements due to the project grew stronger. Mr Soung-sik Cho CMD of POSCO India told reporters We may exclude densely populated portion of three gram panchyats, Dhinkia, Nuagaon and Gadakujanga from the project area."
He, however, made it clear that the plan was in draft form.
POSCO sources said the company targeted to compensate the patch of land by reclaiming some portion of area along the sea coast.
CCEA approves expansion of Krishnashila coalmine
Indias Committee on Economic Affairs has given its approval for sanctioning of Krishnashila Opencast Project of Northern Coalfields Limited to 4.0 million tonnes per year for a capital investment of Rs.789.99 crores for departmental implementation of both overburden removal and coal production.
CCEA also approved tenders for outsourcing of coal production and overburden removal for first three years under ECPP and also on long-term basis and for floating tenders for procurement of equipment for departmental operations .
The Krishnashila Opencast Project is located in the Sonebhadra district of Uttar Pradesh. Krishnashila OCP will have linkage with Captive Thermal Power Station of Renusagar Power Company of HINDALCO.
TCIL to increase the authorized share capital
Tinplate Company of India Ltd has said that the Board of Directors of the Company at its meeting held on April 25, 2006, has decided to increase the Authorized Share Capital of the company from Rs 2765 million to Rs 3265 million by the creation of new Equity Shares aggregating Rs 500 million subject to the approval of the shareholders.
Tinplate Company of India Limited was established in 1922 and is an associate of Tata Steel. It is the largest producer of tin coated and tin free steel sheets in India.
CVRDs profit surge by 68% in Q1 of 2006
Brazil's Companhia Vale do Rio Doce has posted a 68% rise in first quarter net profit due to firm demand and prices. CVRD reported net profit of $1.17 billion up from $698 million a year ago under US GAAP accounting rules. EBITDA rose by 64% to $1.63 billion from $993 million reais over the same period. But in a report, CVRD said that earnings were 2.1 percent below the previous quarter's $1.196 billion, reflecting the negative impact of the weaker dollar against Brazil's real currency and higher costs.
Shipments of iron ore and pellets rose 63.9 million tonnes in the first quarter, up 6.8 percent from the previous quarter, despite disruptions by Indians on the railway from the Carajas mine in northern Brazil to the port at Sao Luis. Sales totaled 57.99 million tonnes up by 10.5% from a year ago but down from the 59.15 million tonnes sold in the fourth quarter of 2005. CVRD said it sold China 17.2 million tonnes of iron ore and pellets in the first quarter of 2006, representing 26.9% of total sales compared with 18.2% a year ago.
CVRD plans to produce some 264 million tonnes of iron ore in 2006, up from 233.9 million tonnes in 2005.
CVRD is seeking a 24.6 percent increase, citing strong demand, higher production costs and the need to invest to expand supplies. But consumers led by China's biggest steel maker Baosteel are resisting. Originally Baosteel sought a price cut but is now holding out for a maximum rise of 12.5 percent, according to analysts.
ThyssenKrupp to set up a service center in Poland
ThyssenKrupp Stahl Service Center GmbH will serve important markets in Eastern Europe from a service center in Poland in the future. Located in the southern Polish city of Dąbrowa Gnicza, the center, to be known as ThyssenKrupp Stal Serwis Polska, will start operations in summer 2007, for producing hot rolled, cold rolled and coated slit strip and blanks on a slitting line and a cut to length line. The facility will have a capacity of 150,000 metric tons per year.
The service center in Dąbrowa Gnicza will serve customers not only in Poland, but also in the Czech Republic, Slovakia and Ukraine. The key customer groups in these markets will be those with particularly high demands on the surface quality and dimensional accuracy of processed steel products. These include automotive OEMs, suppliers and stamping plants as well as producers and suppliers in the home appliance sector. To date, these customers have been served from ThyssenKrupp steel service centers in Germany.
In addition to ThyssenKrupp Stal Serwis Polska, the ThyssenKrupp services and logis-tics complex will also house ThyssenKrupp Energostal, a Polish subsidiary of ThyssenKrupp Services and ThyssenKrupp Stainless Poland, a company in the Stainless segment of the ThyssenKrupp Group.
The Steel Service Europe operating group managed by ThyssenKrupp Stahl-Service-Center GmbH is part of the Industry business unit at ThyssenKrupp Steel. It currently has sites and equity interests in Germany, France, the United Kingdom and Spain.
Turkish court suspends sale of Erdemir to OYAK
The Council of State, Turkey's top administrative court for appeals against actions by the state, on Wednesday suspended the $2.77 billion sale of Turkeys largest steel maker Erdemir to the Turkish pension and investment fund Oyak Group, after a labor union objected. Opposition to Erdemir's sale had been intense in Turkey, provoking strikes by thousands of workers. But the deal is nonetheless expected to eventually go ahead
The court halted the deal saying the Turkish Competition Board, which approved the sale, failed to comply with Turkish regulations on privatization. The court justified its ruling on the grounds that the Competition Board had broken the law by approving the sale with eight members instead of seven as required by law.
The board was now expected to convene with seven members and renew its decision on the company's sale
The administrative court's decision is the latest setback to Turkey's International Monetary Fund-back privatization program. In February, the administrative court similarly suspended the $4.14 billion sale of the Tupras oil refiner to the Koc-Shell consortium.
CSN signs agreement with Corus for Lusosider
Companhia Siderurgica Nacional has signed a sale and purchase agreement with Corus Group Plc through its subsidiary Corus Staal BV, for the acquisition of total control of Lusosider Projectos Siderurgicos SA, a flat steel Portuguese company, producer of pickled hot rolled, cold rolled, hot dip galvanized and tin plate for Euro 25 million. The conclusion of the acquisition is subject to regulatory clearance by the Portuguese Competition Authority, which is expected within 45 days of filing.
Lusosider, located in Seixal Lisbon surroundings, produced 203,000 tonnes of galvanized, 28,000 tonnes of pickled hot rolled and cold rolled and 71,000 tonnes of tin plate during 2005 with 249 employees. CSN shared equally the Lusosider control with Corus.
The acquisition reinforces CSN's commitment to its international expansion strategy, increasing its operations abroad by acquiring finishing lines located near the largest steel markets.
Arcelor to remain steel consolidator
Mr Guy Dolle CEO of Arcelor, while speaking on the sidelines of a power-plant inauguration, told Reuters that Arcelor will continue to play a consolidator role in the global steel industry. Mr Dolle said "We plan to remain as a consolidator in this industry and we don't believe in creating an amalgam of different companies with different cultures."
He also restated Arcelor's conditions for entering talks over Mittal Steel's takeover bid that the offer should be all cash or come with a full business plan. Mr Dolle said "We said that as long as the offer is mixed shares and cash, we want a business plan. Apparently Mr Mittal doesn't want to give one. You can't judge the quality of a company, or its future, if you don't have a business plan. That's what the Arcelor chairman said in the letter he sent back."
Mittal Steel rejects SPFU charges
Mittal Steel Krviy Rih has rejected the Ukrainian government's complaint over salaries, insisting that it was fulfilling its ownership obligations. Mittal Steel countered in a statement that it has fulfilled almost all of its 60 obligations and accused the property fund of misinterpreting one of its obligations. According to the statement Mr Frank Pannier GM in a letter to Ms Valentyna Semenyuk head of the SPFU wrote "To talk about breaking off the deal because of existing disagreements in interpreting one clause of the obligations is illogical and wrong."
SPFU on 12th April posted a release on its web site regarding term fulfillment of the sale and purchase agreement for "Kryvorizhstal" OJSC and elimination of the violations pointed out by the Fund. The release stated that the inspection of term fulfillment of the sale and purchase agreement for the block of "Kryvorizhstal" OJSC shares was carried out according to the order of the State Property Fund of Ukraine. According to the inspection results, the owner of the block of shares was instructed to eliminate the violations of paragraphs 11.3.3. and 11.3.4, namely after the transfer of the property rights for the block of shares, the base rate for 1st category worker with normal work conditions should not be lower than the cost of living for an able-bodied person and material incentives for workers (preservation of the current compensation and bonus system and the current rate of bonuses, benefits, base rate (salary) increases); payment of bonuses amounting to average salary and other material incentives, based on the Company work results. The owner of the block of shares provided timely explanations, requesting to cancel the conclusions of the inspection act. The Fund retains the requirements for term fulfillment and is processing the information provided by the purchases in order to verify the compliance of the explanations provided to the current legislation.
CSN may build a steel rolling mill in Kentucky Plant if WP deal fails
Brazilian steel company CSN announced that it plans to build a steel rolling mill in the USs state of Kentucky if a proposed tie up with US steelmaker Wheeling-Pittsburgh is not concluded. Mr Marcos Lutz director of infrastructure and energy of CSN said "This is an alternative to the Wheeling-Pittsburgh deal. If we are not able to conclude the alliance with Wheeling-Pittsburgh, we will go ahead with this new greenfield project."
The proposed rolling mill near Owensboro, Kentucky, would produce between 1.5 million and 2 million tons of rolled steel products per year and cost $350 million.
The Kentucky rolling mill or Wheeling-Pitt alliance are aimed at finding an outlet for CSN's planned 6 million ton expansion to its slab making operations, Mr Lutz said. CSN wants to guarantee that at least 50% of the new slab production will be sold. The company is spending $5 billion over the next five years to build two steel slab making plants, increase iron ore output and boost port operations.
USs investment firm Silver Point takes over Galvex
It is reported in a daily that the Galvex group announced on May 5 that a US bankruptcy court had confirmed that Silver Point Capital, an investment firm registered in the United States, had acquired the assets of Galvex, the owner of a steel galvanizing plant in Muuga.
Following the court supervised auction, Silver Point Capital will acquire all the shares of Galvex Holdings subsidiaries including Galvex Estonia, Galvex Intertrade and Galvex Trade and a substantial part of the other assets of Galvex Holding.
Coal mine gas burst kills 9 in Sichuan Province of China
9 miners died and 2 are missing in a gas blast early Wednesday morning at a coal mine in Xingwen County, southwest China's Sichuan Province. The burst occurred at 1:32AM in the Aotian Coal Mine in Shilin Town, when 28 miners were working underground. 17 miners were rescued from the shaft but the accident has injured 9 miners.
Rescuers are still searching for the two missing. Investigation into the cause of the accident is underway.
The mine is licensed, with an annual output of 60,000 tons.
Kloeckner & Co aiming for IPO in June July
Financial Times Deutschland has reported that Duisburg based Germany's steel giant Kloeckner & Co announced that it is considering an initial public listing on the Frankfurt Stock Exchange possibly in June or July citing a spokesman for the company.
The report said that Kloeckner & Co will issue shares equivalent to around 50% of its capital to raise around Euro 500 million.
CSN Q1 results effected by BF shutdown
Companhia Siderurgica Nacional has reported net income of R$ 340 million in Q1 of 2006, almost same as compared to the previous quarter, despite the accident in Blast Furnace #3. Accumulated net revenue of R$ 2.0 billion is reported for Q1 of 2006, which is lower than the revenue reported in the quarter before and also Q1 of 2005. EBITDA of R$ 948 million, already accounting for a 30-day deductible in insurance for profit loss, is in line with the previous quarter.
Average prices were 7% higher than the prior quarter, even with 7% appreciation of the real against the dollar. The 13% increase in export prices during the quarter reflected the upward trend in international markets.
Coated products accounted for 58% of total sales in the quarter. CSN increased its share in distribution for 23% to 28% and home appliance markets from 30% to 33.
AK Steel to raise SS prices
AK Steel announced that it will increase transaction prices for all hot rolled and cold rolled stainless steel sheet, strip, tubular quality and continuous mill plate products by approximately 6%, effective with shipments on May 21, 2006. The price increases will be accomplished through a two percentage point reduction in the functional discount rate.
AK Steel also said that it will increase polish finish extras on stainless steels by 17%.
AK Steel has cited raw materials price increases for many of the price hikes it has enacted so far in 2006.
Headquartered in Middletown, Ohio, AK Steel produces flat-rolled carbon, stainless and electrical steel products, as well as carbon and stainless tubular steel products, for automotive, appliance, construction and manufacturing markets.
Gerdau Ameristeel announces Q1 results
Gerdau Ameristeel Corporation has reported net income of $87.4 million on net sales of $1.1 billion for the three months ended March 31, 2006 as compared to net income of $78.6 million on net sales of $1.0 billion for the three months ended March 31, 2005. EBITDA for the first quarter of 2006 was $171.2 million as compared to EBITDA for the first quarter of last year of $151.5 million.
Excluding joint ventures, the Company shipped 1.6 million tons of finished steel in the three months ended March 31, 2006, an increase of 2.5% over the first quarter of 2005. Average mill prices increased $19 per ton, or 3.6%, compared to the first quarter in 2005. Scrap raw material costs decreased $10 per ton, or 5.0%, compared to the first quarter of 2005.
During the quarter ended March 31, 2006, the Company completed two acquisitions. On February 10, Gerdau Ameristeel completed the acquisition of Fargo Iron and Metal Company, a scrap processor with approximately 50,000 tons of scrap generating capacity, and on March 10, the Company completed the acquisition of the rebar fabricating assets of Callaway Building Products, Inc. with approximately 10,000 tons per year of capacity. Also, the Company recently announced that its US operating subsidiary, Gerdau Ameristeel US Inc, entered into a definitive agreement to acquire all of the outstanding shares of Sheffield Steel Corporation. Sheffield Steel is a mini-mill producer of long steel products, primarily rebar and merchant bars with annual shipments of approximately 550,000 tons of finished steel products. Sheffield operates a melt shop and rolling mill in Sand Springs, Oklahoma, a smaller rolling mill in Joliet, Illinois, and three downstream steel fabricating facilities in Kansas City and Sand Springs. The transaction is expected to close in the second quarter of 2006.
Gerdau Ameristeel is the second largest mini mill steel producer in North America with annual manufacturing capacity of over 8.4 million tons of mill finished steel products. Through its vertically integrated network of 15 mini mills including one 50% owned mini mill, 17 scrap recycling facilities and 43 downstream operations, Gerdau Ameristeel primarily serves customers in the eastern two thirds of North America.
MMKs steel production up by 6.3% during January to April
Magnitogorsk Iron and Steel Works have produced 3.89 million tons of steel during January to April, which is 6.3% more than for the same period of last year.
The sinter production increased by 5% to reach 3.661 million tons, the coke production increased by 1.7% to reach 1.868 million tons, the pig iron production increased by 7% to reach 3.277 million tons and the finished steel increased by 8.2% to reach 3.602 million tons.
The share of exports in the metal production shipment decreased from 52.7% to 50.8% from the beginning of year.
Bekaert Q1 sales up to Euro 481 million
Belgian steel wire and cord manufacturer Bekaert SA announced that its Q1 of 2006 sales were 481 million and combined sales of 795 million, an increase of 4% and 9% respectively over Q1 of 2005. After the strong growth in 2004 and 2005 Bekaert again recorded an increase in the consolidated sales in the first quarter. While organic growth decreased by 2%, the net changes as a result of acquisitions and divestments contributed to an 2% sales increase and currency movements had a positive impact of 4%. Sales in Europe went down by 9% but sales in Asia increased by 34%.
Bekaert recorded a sales increase in advanced wire products, partly due to the positive impact of currency movements. In Europe Bekaert was faced with lower demand for most of its wire products, compared to the strong first quarter of 2005, while the demand in North America, mainly for cable strands and fencing products, was higher. Bekaert performed strongly in building products, despite the very long winter in most European countries. Sales in Latin America rose sharply, partly due to the effect of strong local currencies.
Steel cord products sales in Europe were lower than in the exceptionally strong first quarter of 2005. With the acquisition of Delta Wire, a major supplier of bead wire in North America, Bekaert wants to support further the growth of its market share on the North-American market. The company has also launched discussions on exclusive cooperation with the Russian company Uralkord.
Bekaert saw a significant sales rise in China where a major investment program is ongoing. A start has been made on the new expansion projects in Jiangyin in Jiangsu province and in Shenyang in Liaoning province while additional production capacity was made available in Weihai in Shangdong province for customer supply.
Mittal Steel Roman profit up by 24% in Q1
Mittal Steel Roman has reported a profit of 21.055 million lei in Q1 of 2006 up by 24.23% as compared to 15.952 million lei in Q1 of 2004.The turnover also grew to 257.343 million lei during January to March 2006 as compared to 176.457 million lei YOY.
Mr Regie Paul CEO of Mittal Steel Roman said ''Mittal Steel implemented a strong program of technological investments and environment investments in the Roman based plant. The program is in line with the privatization contract and the positive effects have started to mirror in the financial results of 2005 and in the upward trend of Q1 2006.''
After the investments, the products of Mittal Steel Roman are produced according to API, ASTM, ASME, DIN, NF and EN standards.
Mittal Steel Roman registered a profit of 28 million lei in 2005 as compared to losses of 6.4 million lei registered in 2004 and the turnover grew to 775 million lei in 2005 as compared to 513 million lei in 2004.
Evraz Groups major Russian subsidiaries report Q1 results
The Evraz Group SAs major Russian operating subsidiaries have issued latest financial results for the three months ended March 31, 2006, prepared in accordance with RAS, and filed with the Federal Financial Markets Service of the Russian Federation.
OAO Nizhny Tagil Iron and Steel Plant reported revenue of 14, 821 million roubles in Q1 of 2006 as against 19,452 million roubles in Q1 of 2005. The net profit decreased to 2,733 million roubles as against 4,212 million roubles in Q1 of 2005. NTMK profit decreased due to significant drop in export prices as against those during Q1 of 2005
OAO West Siberian Iron and Steel Plant reported revenue of 14,085 million roubles in Q1 of 2006 as against 15,207 million roubles in Q1 of 2005. The net profit decreased to 1,371 million roubles as against 1,525 million roubles in Q1 of 2005. Prices for exported semis in Q1 2006 were lower in comparison with peaking prices of Q1 2005.
Higher net profit at NTMK and Zapsib in Q4 2005 as compared to Q1 2006 is partially attributable to dividends payments made by KGOK to these two mills. Excluding the amounts paid as dividends by KGOK to NTMK (Rouble 2,364 million) and Zapsib (Rouble 1,797 million) the net profit in Q1 2006 at these two steel mills would have been -26% and +8% against Q4 2005.
OAO Kachkanarsky Mining and Processing Integrated Works reported revenue of 2,908 million roubles in Q1 of 2006 as against 4,264 million roubles in Q1 of 2005. The net profit decreased to 1,051 million roubles as against 2,118 million roubles in Q1 of 2005. KGOK decreased profit YOY due to lower domestic prices and destocking. The profit was impacted by lower domestic iron ore prices starting from mid-2005. Iron ore volumes decreased in Q1 of 2006 against Q4 of 2005 due to optimization of inventory levels and bad weather conditions.
Evraz Group SA is one of the largest vertically integrated steel and mining businesses with operations mainly in Russia. In 2005, Evraz Group produced 13.9 million tonnes of crude steel. Evraz Groups principal assets include three of the leading steel plants in Russia: Nizhny Tagil NTMK in the Urals region, West Siberian ZapSib & Novokuznetsk NKMK in Siberia, Palini e Bertoli in Italy and Vitkovice Steel in the Czech Republic. Its mining businesses comprise Evrazruda, Kachkanarsky KGOK, Vysokogorsky VGOK iron ore mining complexes, Neryungriugol Coal and equity interests in the Raspadskaya and Yuzhkuzbassugol coal mines. Evraz Group also owns and operates the Nakhodka commercial sea port in the Far East of Russia.
Mittal Steel to back Ukraine in Euro - 2012 bid
Mittal Steel Corporation will give sponsorship support to the Ukrainian football association, which is taking bidding to host the European football championship in 2012 together with Poland.
The press service of the company quoted Mr Aditya Mittal CFO as saying that "We are the largest foreign investor in Ukraine and we think that our investment will bring significant benefits to the economy of the country. Football is the most popular kind of sport in Ukraine and a winning bid would mean that Ukraine has a unique opportunity to host an international sport event of world importance."
Suzuki Metal & Sumitomo Electric to merge SS wire units
Suzuki Metal Industry, in which Nippon Steel has 22% interest, and Sumitomo Electric Steel Wire, which is wholly owned subsidiary of Sumitomo Electric Industries, announced on Tuesday they reached basic agreement to establish new firm to combine their stainless steel wire business.
They continue the talk for detail and plan to integrate the business in April 2007. The combination company is comparable to the largest stainless wire maker, Nippon Seisen.
Mr Bert De Graeve new CEO of Bekaert
Bekaerts board of director has appointed Mr Bert De Graeve as a director. As a result of this decision, the appointment by the board of directors of Mr Bert De Graeve as CEO came effective at the close of this general meeting.
Bekaerts board of director has also decided to increase the number of directors from fourteen to fifteen and accepted the recommendation to re appoint Mr Baron Leon Bekaert, Mr Baron Buysse, Count Charles de Liedekerke, Mr Julien De Wilde, Mr Hubert Jacobs van Merlen and Mr Maxime Jadot as Directors for a term of three years. The office of Mr Baron Buysse as Chairman was renewed for the same period.
Mr Baron Buysse thanked Mr Julien De Wilde, who resigned as CEO today and also pledged every support to the new CEO Mr Bert De Graeve, on behalf of the board of directors and the shareholders in the further development of Bekaert.
Sunoco reports improvement in earnings of coke business in Q1
Sunoco Inc has reported that its coke business earned $14 million in the first quarter of 2006 versus $10 million in the first quarter of 2005.
The increase is mainly attributable to the addition of the Haverhill Coke Plant which began operations in March 2005.
