TATA Steel announces Q4 and 2005-06 results

TATA Steel has reported a 14% fall profits during January to March quarter. TATA Steel said that net profit fell to 7.83 billion rupees ($172.5 million) as against 9.09 billion rupees during January to March 2005. The fall in earnings was for the second quarter in a row. Net sales in the quarter were 41.28 billion rupees up by 7% YOY.

TATA Steel has posted a net profit of Rs 35063.80 million for 2005-06 as compared to Rs 34741.60 million for 2004-05. Total income net of excise has increased from Rs 146469.80 million in 2004-05 to Rs 153941.50 million in 2005-06.

Dr T Mukherjee Deputy MD Steel told a press briefing that 2005-06 net margins per tonne of steel had been lower due to declining steel prices and rising raw material prices. Right product mix and higher volumes helped maintain overall profit.

Essar Steel commissions Indias first vertical caster

Essar Steel has commissioned Indias most modern 1.8 million tonnes slab caster at its Hazira steel plant to augment its annual capacity to 4.6 million tonnes as a part of the expansion plans from 2.4 million tonnes to 4.6 million tonnes which is also involves raising capacity of its sponge iron, steel making, casting and rolling units along with connected utilities and is expected to be completed during this year at a total cost of Rs 2,000 Crores. The caster is designed to cast slabs of up to 2000 mm width of 220 & 260 mm thickness in length ranging from 4.6 meters to 10.2 meters in exotic grades of steel required for specialized requirements like interstitial free steel, ultra low carbon Steel and API x80.

The caster is equipped with the latest technologies such as vertical mould of special copper alloy, hydraulic mould oscillator with dynamic control, mould width adjustment, automatic mould level controller, sticker detection system, segments with dynamic soft reduction etc. It is also equipped with the state of the art electrical and automation system some of which are being introduced for the first time in any Caster in India. These are designed to ensure precise control of grain structure, surface quality, internal soundness and defect free slabs.

The Caster has been designed by SMS Demag. They have also supplied basic engineering and the critical equipments, Level II automation and provided support in commissioning. Essar Constructions undertook complete engineering, civil work, structural work, equipment erection, piping, electrical and automation jobs and achieved it in record time of 14 months.

Essar Steel expects to complete the expansion of the steel plant capacity during the current year at an estimated cost of Rs. 2000 crores. The expansion also involves raising capacity of its sponge iron, steel making, casting and rolling units along with connected utilities.
About Essar Steel.

Essar Steel is part of the Essar Group and has a capacity of 4.6 million tonnes of steel per annum. Its Hazira steel plant is the largest integrated steel plant in Western India. Essar Steel is also Indias largest exporter of flat steel products and focuses on value added products and a high degree of customization. The Essar Group is one of Indias largest corporate houses with interests spanning the manufacturing and service sectors like Steel, Shipping, Power, Oil & Gas, Telecom and Constructions. The Group has an asset base of over Rs.23,000 crore.

Government approves merger of MEL with SAIL

Indian government on has accorded in principle approval to the merger of Maharashtra Elektrosmelt with Steel Authority of India Limited in its effort to strengthen the domestic steel industry. Steel Minister Mr Ram Vilas Paswan said "After due deliberations with the management of SAIL and MEL, we have decided to give in principle approval to the merger of SAIL with MEL to strengthen the steel industry."

The Minister is expected to make a formal announcement later this month or early next month when he visits MEL at Chandrapur.

SAIL Chairman Mr VS Jain said that the formal clearance of the merger will be sought at the next meeting of SAIL Board.

Bhilai Steel Plant bags PM's Trophy for 2004-05

Bhilai Steel Plant of the Steel Authority of India Ltd has been adjudged as the best performing steel plant in the country for the year 2004-05 and Prime Minister Dr Manmohan Singh will hand over the Prime Minister's Trophy at a function to be held in Visakhapatnam on May 20. Besides the trophy, the award includes a citation scroll and cheque for Rs 1 crore.

Upon receiving the award, BSP will have the distinction of becoming the only steel plant in the country, public or private, to have been honored with the prestigious PM's trophy seven times out of the 13 times.

BSP recorded a profit before tax of Rs 4,042 crore in 2004-05. It produced more than five million tonnes of hot metal in 2005-06.

TATA Steel board approves plan for raising $ 1 billion

TATA Steel has informed BSE that the Board of Directors of the Company at its meeting held on May 18, 2006, has proposed to explore ways of raising long term finance for the Company's growth plans for an amount of up to US $ 1 billion in the foreign markets in some appropriate form. This is in accordance with the approval given earlier by the shareholders.

The Board has formed a Committee of the Board to examine various options for raising the funds and to determine the appropriate form of the securities to be issued, provided the terms prevailing in the market are acceptable.

TATA Agrico to increase reach through e-Choupals and Choupal Sagar

TATA Agrico has entered into a distribution alliance with ITC International Business Division to market its agricultural implements in rural interiors of India through ITC's e-Choupals and Choupal Sagar network. This initiative will make genuine TATA Agrico implements accessible to rural consumers at right price at nearby choupals.

The e-Choupal network is by far the largest network in the country with over 6000 ICT kiosks in operation. The 'Choupal Sagar' is a rural hypermarket which provides multiple services under one roof. It creates a platform for farmers to sell their produce. Farmers can also buy quality products for their farm and household consumption from Choupal Sagar.

TATA Agrico, a division of TATA Steel is the pioneer manufacturer of superior quality agricultural implements in the country. Since 1925, it has been the leading manufacturer of Shovels, Powrahs, Crowbars, Kudalies, Pickaxe and Hammers.

GMR & China Light to jointly bid for 4000MW plant in MP

GMR Energy Ltd announced that it has signed an initial agreement with Hong Kong's China Light & Power Co Ltd. to jointly bid for a 4,000MW power plant in Madhya Pradesh. GMR Energy's director Mr B Vanchi told "Both companies are likely to form a special purpose vehicle with an equal stake."

India invited expressions of interest for setting up five 4,000MW coal fired power projects, which are estimated to cost about 150 billion rupees ($3.3 billion) each.

GMR Energy currently operates three power plants generating 824MW. The company is also bidding for a 20 billion rupees power transmission project in the western region of India along with KEC International Ltd.

India tops charts in April 2006 crude steel production growth

World crude steel production for the 62 countries reporting to the International Iron and Steel Institute was 98.992 million tons in April 2006, which is 6.1% higher than for the same month of 2005. The production during January to April 2006 amounted to 383.764 million tonnes an increase of 6.3% over corresponding period of 2005.

The growth during April 2005 among regions was led by Other Europe by registering growth of 14.5% due to 221,000 tonnes increase in Turkey and 53,000 tonnes in Serbia and Montenegro. Asia, Middle East and Europe 25 also registered positive growth of 13.5%, 8.1% and 1.2% respectively in April 2006 YOY. All other regions witnessed negative growth in April 2006 YOY.

The crude steel production during January to April 2006 was led by Asia, which produced 199.582 million tonnes registering a growth of 12.7%. Other regions to have recorder positive growth include Other Europe and Middle East.

Among the top 20 nations, India topped the growth in steel production by registering 24.6% increase followed by China 20.1%, Poland 16.9%, Turkey 12.7% and Iran 10.6%

Rio Tinto achieves 19% iron ore hike with Japanese mills

Rio Tinto's subsidiary Hamersley Iron has reached agreement with major Japanese Steel Mills on the price for Hamersley fine iron ore deliveries for the contract year that started on April 1. Under these agreements, the price of fine ore will increase by 19%.

Mr Sam Walsh CEO of Rio Tinto's iron ore group said: This year's pricing reflects the current international market, which is characterized by extremely tight supply and a continuing high level of demand.

CVRD seals iron ore price with Ilva & POSCO

CVRD has concluded the iron ore price negotiations for this year with Italian steelmaker Ilva and South Korean steelmaker POSCO and as a result of negotiations, both steel producers will pay 19% more for iron ore supplies from CVRD and 3% less for blast furnace pellets.

CVRD said "CVRD and Posco developed a long and mutually beneficial relationship that completes its 30th anniversary this year and the current agreement involves an amount of iron ore fines and pellets of approximately 12 million tonnes for 2006."

CVRD has earlier announced completion of negotiation and agreement at same price adjustments for iron ore and blast furnace pellets with German steelmaker ThyssenKrupp Stahl AG and with Japanese steel mills.

Mittal Steel offer for Arcelor opens on May 18th

Mittal Steel announced that its offer for Arcelor has opened in Luxembourg, France and Belgium. It is expected to open in Spain and the United States shortly. The offer will be open for 30 business days except in Spain and the United States, closing on the 29th June 2006 in all jurisdictions.

Mr LN Mittal said Since our offer was first announced the market has demonstrated that it likes the strategy of the deal through the considerable value created. We have always said that it is the shareholders who should decide on this transaction and we are pleased that now that the offer is open they will have ability to do so. We continue to believe that our offer is a very attractive one, structured to enable Arcelor shareholders to participate in the exciting growth potential of the combined company, whilst also receiving a generous cash element. The combined company will create the only steel company with a broad and compelling geographic footprint, well diversified product portfolio, unique cost position and ample captive raw material sources. We are confident shareholders will find great appeal in this model, whose strong growth profile will underpin superior shareholder returns.

Iron ore negotiation pressure on China increases now

Although Chinese steelmakers continued to hold out for a smaller hike in iron ore prices after today's announcements that Japanese mills have accepted a 19% price hike in negotiations with global ore suppliers, Baosteel, the sole negotiator for the Chinese steel industry, is expected to see growing pressure to abandon its negotiating position believed to be based on a maximum 10% rise. According to reports, the China Iron and Steel Association said it will convene an emergency meeting to formulate a new strategy after the Japanese settled for 19%.

CVRD and Rio Tinto both announced today that they have agreed a 19% iron ore contract price increase for the year to March 2007 with Japanese steel companies. The Japanese deal represents the failure of steel companies to hold the line on price with China now facing a markedly changed negotiating environment.

Negotiations over the iron ore prices have turned out a marathon in 2006. Agreement has normally been reached in the international market by April 1. The exception in the past 25 years took place in 2002 when Asia did not make the deal until May 31.

This year, Chinese are in the fifth round of talks with the three world iron ore suppliers and hope of reaching agreement is still dim as China is struggling to resist the drastic price hike imposed by the top three.

Clemenceau returns home

The French warship Clemenceau five months after heading to India to be scrapped is back in its home port of Brest. The obsolete vessel docked amid tight security at the naval port of Brest on Wednesday morning, after a long and controversial journey to India and back. Tests are now planned to find out exactly how much asbestos is left on board and how France can deal with it.

The French government was forced to recall the aircraft carrier because Indian government denied its entry at a ship breaking yard in Alang.

The Clemenceau, officially known as Q790 since being decommissioned, has proved to be one long toxic headache for France since being taken out of service in 1997. The ship was first sold to a Spanish firm, which should have taken out any hazardous asbestos waste before breaking up the vessel. But the company discovered that could not be done within the EU because of health and safety laws. The Clemenceau then headed for Turkey but had to be brought back. A German firm took up the challenge and sent her to India for decontamination late year.

Investors willing to pay $ 6 billion for Kryvorizhstal

It is reported that Ms Valentina Semenyuk the head of the Ukraines State Property Fund said that "There are several domestic and foreign investors who are ready to pay 30 billion hryvnas (about $6 billion)." Ms Semenyuk declined to name the new investors, citing considerations of commercial secrecy, only saying that it would not be another re privatization attempt but the government's move to exercise control over investment obligations.

93% stake in Kryvorizhstal was sold for 24.2 billion hryvnas ($4.8 billion) to Mittal Steel in October 2005 but USPF has recently indicated that the plant may be re sold at an auction because the current owned are not honoring their commitments.

Nucor to build building systems and component facility

Nucor Corp announced that it plans to construct its fourth facility to produce metal building systems and components. The facility will be located in the western United States and will have an annual capacity of approximately 45,000 tons. It is expected to cost approximately $27 million and to employ more than 200 people. Construction is expected to begin after satisfactory resolution of site location, regulatory approvals, tax matters and various contracts.

Mr Daniel R DiMicco Nucor's chairman, president and CEO said "We look upon this new facility as an opportunity to expand our metal building systems presence in the western United States."

Nucor currently has building systems facilities in Indiana, South Carolina and Texas that have a combined annual capacity of more than 145,000 tons.

Nucor and affiliates are manufacturers of steel products, with operating facilities in seventeen states and products range includes carbon and alloy steel in bars, beams, sheet and plate; steel joists and joist girders; steel deck; cold finished steel; steel fasteners; metal building systems; and light gauge steel framing. Nucor is the nation's largest recycler.

Raspadskaya to buy coal mining assets

Evraz Group announced that OJSC Raspadskaya, owned by its JV Corber Enterprises Ltd, had agreed to buy two coal mining assets. The transactions will take place if approved by Raspadskaya's meeting scheduled for June 8.

Evraz said its partner in Corber Enterprises would contribute the assets to Raspadskaya. Evraz will provide $225 million in cash to maintain its current 50%stake in Corber Enterprises and also $300 million in short-term financial guarantees for OJSC Raspadskaya.

Mr Valery Khoroshkovsky CEO of Evraz is quoted as saying "This new investment into Raspadskaya is part of our strategy of expanding our coal mining asset base through high quality profitable acquisitions."

Mittal Steel to sort out salary issues at Kryviy Rih

Mittal Steel said that it was fulfilling its commitment to raise salaries at the Kryviy Rih steel mill and denied a report it was in danger of losing the plant. Ms Nicola Davidson a spokeswoman for Mittal Steel said in an e-mail "Mittal Steel rejects recent suggestions that we have failed to honor our contractual obligations to Mittal Steel Kryviy Rih.''

Ms Davidson said "Mittal Steel Kryviy Rih executives met personally with the chairperson of the state property fund on May 16 and the company is confident the matter can be resolved through good faith negotiations.''

Earlier, Valentyna Semenyuk the head of the Ukrainian Property Fund told RIA-Novosti that Mittal Steel could lose the mill if it didn't increase salaries as several domestic and foreign investors' are ready to pay about $6 billion for the mill without naming any of them. SPFU has said that Mittal Steel has until June 6 to raise salaries or face legal action.

Mechel reports 29.8% drop in net profit for 2005

Mechel posted 2005 net profits of $381 million on higher raw material costs and tougher competition although revenues increased by 4.6% to $3.8 billion from $3.64 billion in 2004. Adjusted net income was $381.18 million down by 29.8% from $542.72 million in the year ago period. Adjusted EBITDA was $726.25 down by 20% from $907.73 million in the prior year. Net income and EBITDA of 2004 excluded gain from the sale of MMK shares. Operating income declined by 31.3% to $515.73 million or 13.6% of net revenue from $750.81 million or 20.7% of net revenue in the year ago period. Gross margin declined to $1.34 billion from $1.41 billion a year ago.

Revenue from steel segment declined by 1.7% to $2.71 billion 71.2% of net revenue from $2.76 billion in the last year.

The results for the year negatively impacted by $12.7 million on account of a write off related to the fixed assets in Romanian operations on restructuring of production processes. Loss on account of foreign exchange was $37.4 million compared to a gain of $1.9 million in the last year, due to devaluation of cash balances in euro accounts.

Mr Alexey Ivanushkin COO of Mechel said "2005 was a challenging year for Mechel, as higher raw material costs and a more competitive pricing environment negatively impacted our profitability. However, we remained committed to our strategy of expanding our mining segment in order to partially offset the weakness in the steel segment."

Rautaruukki receives approval for the purchase of Ventall

Rautaruukki Corporation has received the approval of competition authorities for the purchase of OOO Ventall. The transaction is expected to be finalized in June.

Through the purchase of Ventall, Ruukki will obtain market share in the strongly growing construction market in Russia. Ruukki's goal is to be one of the leading suppliers of metal based construction solutions in the Nordic countries, Central & Eastern Europe, Russia and Ukraine.

Ventall is the leading steel constructor in Russia, located in Obninsk in the Kaluga region, some 100 kilometers south of Moscow. The company had 1238 employees at the end of 2005. Ventall had net sales in 2005 of Euro 70 million and an operating profit of Euro 15.5 million. Net sales for 2006 are forecast to be some Euro 110 million.

AK Steel announces June surcharges

AK Steel has advised its flat rolled carbon steel customers that a $193 per ton surcharge will be added to invoices for products shipped in June 2006. AK Steel has also advised its electrical steel customers that a $210 per ton surcharge will be added to invoices for electrical steel products shipped in June 2006.

AK Steel's surcharges are based on reported prices for raw materials and energy used to manufacture the products, with the April 2006 purchase cost used to determine the June 2006 surcharges.

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.

Fortescue will fight for Shovelanna

Fortescue Metals Group says it will renew the fight for the contested Shovelanna iron ore deposit should Cazaly Resources appeal for ownership of the project be upheld.

Cazaly had claimed the Shovelanna project after Rio Tinto failed to renew its lease last September. However in April the West Australian resources minister stripped Cazaly of the project handing it back to Rio Tinto. Prior to the decision favoring Rio Tinto, Fortescue had claimed it had the right to the project. Fortescue said it signed a deal with Cazaly in early 2004 granting Fortescue pre emptive rights to all iron ore tenement applications. Fortescue has sought to discontinue the legal proceedings against Cazaly.

Federal Court's Justice Robert French said since the subject matter had vanished he would grant the leave to abandon the proceedings. However, Fortescue sought a window to start the proceedings again should Cazaly be successful in appealing the resources minister's decision. Fortescue was ordered to pay all Cazaly's legal costs in the matter.

USs Senate committee passes bill to improve safety at coal mines

Members of the USs Senate Health, Education, Labor and Pensions committee gave unanimous approval to a bill authored by panel chairman Mr Mike Enzi of Wyoming and Massachusetts Democrat Mr Edward Kennedy. The bill would require miners to have least two hours of oxygen available rather than one. It would also require mines to have two way wireless communication systems in place within three years.

Mr Enzi sai that coal mining accidents in West Virginia earlier this year illustrate the need that such tragedies will not be repeated.

House lawmakers say they also hope to approve mine safety legislation. However, Republicans and Democrats in that chamber have not rallied around one approach.

Arcelor honored with the Canadian Investment Award 2006

In the presence of representatives of the Embassy of Canada in Belgium and the Chamber of Commerce Canada, Belgium & Luxembourg Mr Michel Wurth VP of the Arcelor Management Board, received the Canadian Investment Award 2006.

The Canadian Investment Award is the symbol of the outstanding trading relations between Canada, Belgium and Luxembourg. It recognizes Belgian and Luxembourg companies that have recently invested in Canada.

Mr Michel Wurth during the award ceremony on 16 May 2006 in Brussels said "Arcelor is honored by this award that distinguishes its strategic investment in Canada. With the acquisition of Dofasco, Arcelor's position as the world leader of intelligent steel solutions for the automotive industry is strongly reinforced."

Mittal Steel Galati upgrades BF no 5

Romanian Mittal Steel Galati has invested $59 million in the upgrading and reengineering of its biggest 5,500 tonnes per day blast furnace no 5 of the steel plant. The upgrading and re engineering work started in November 2005 and has been done by Mittal Steel Galati specialists with support from experts of Ipromet and Uzinsider designing institutes in Romania.

Mr KAP Singh GD of Mittal Steel Galati said "The upgrading and re-engineering operations taking place at furnace 5 is part of Mittal Steel's strategy of boosting the plant's competitiveness. Old equipment was replaced with last generation one meant to reduce production costs and increase the safety."

The upgrading and re engineering of Mittal Steel Galati furnace 5 is part of the investment program implemented by Mittal Steel since the very moment of privatization. During the last four years, Mittal Steel Galati has invested more than $323 million into technological projects and $42 million in environment protection programs.

Mittal Steel has Mittal Steel Galati, Mittal Steel Roman, Mittal Steel Iasi and Mittal Steel Hunedoara in Romania.

ThyssenKrupp Umformtechnik opens stamping shop

ThyssenKrupp Umformtechnik GmbH Bielefeld, inaugurated a new stamping shop for automotive body parts at its Brackwede plant. The new production area, specializing in the processing of high strength steels and large exposed and structural parts took just under a year to complete. The new shop will produce complex sheet metal parts in innovative steel grades for the auto industry. This extension to the site's capacities for exposed panels and large body parts includes a blanking line, a stamping line with robotic links plus a fully automated packing system for the stamped parts.

ThyssenKrupp Umformtechnik GmbH has longstanding experience in the development and manufacture of stampings and assemblies for the international auto industry. The company has around 2,100 employees and produces body and chassis components at its Bielefeld-Brackwede and Ludwigsfelde sites. ThyssenKrupp Umformtechnik GmbH is a subsidiary of ThyssenKrupp Automotive AG, Bochum. ThyssenKrupp Automotive is one of the world's leading automotive supply companies with around 130 production sites in 14 countries.

Alloy Steel & United Tractors sign MoU for distribution of wear resistant plates

Australian Alloy Steel International Inc has signed a MoU for a non exclusive distribution agreement with PT United Tractors TBK (United Tractors) of Jakarta, Indonesia. United Tractors will guarantee to purchase a minimum of $2 million of Alloy Steel's ArcoPlate(TM) products in the first year increasing to $3 million in the second year.

United Tractors will be granted the distribution rights for the geographical territory of Indonesia. Alloy Steel will maintain the direct supply rights to two Indonesian equipment manufacturers. Further years are to be agreed upon as per conditions of a full distribution agreement.

United Tractors Group is a primary supplier of heavy equipment and related services in Indonesia generating over $1 billion in revenue annually. United Tractors is a major distributor of heavy equipment in Indonesia with over 45% of market share.

Alloy Steel International makes engineering and wear resistant materials used in the mining, mineral processing and construction industries. ArcoPlate(TM) patented manufacturing process is the only thermo clad fused alloy wear plate available on the market. This metallurgical bonding of alloy and steel backing plate is resistant to wear, impact and abrasion.

Metal Management acquires OmniSources Indiana facility

Chicago based Metal Management Inc has announced the acquisition of a recycling facility in East Chicago in Indiana from OmniSource Corp. The financial details of the transaction were not disclosed.

Under the terms of the agreement, Metal Management has acquired the property, buildings and equipment of OmniSource's East Chicago facility, including a 29 acre yard, an automobile shredder, two balers and a shear. The facility handles approximately 430,000 tons of ferrous scrap metal and approximately 10 million pounds of nonferrous scrap metal per year.

Metal Management is one of the largest full service metal recyclers in the United States, with approximately 50 recycling facilities in 16 states.

OEMK profits in Q1 dip by 43.5%

Oskol Electrometallurgical Combine in Russia's Belgorod region reduced net profit to RAS by 43.5% YOY in the first quarter of 2006 to 1.06 billion rubles. OEMK reported revenue of 7.197 billion rubles in Q1 of 2006 as against 8.021 billion rubles in Q1 of 2005.

Mr Alisher Usmanov controlled CJSC Gazmetall owns approximately 70% of the shares in OEMK.

Mongolian coal fields to feed China in future

Mongolia, sitting on massive and relatively untapped coal reserves, could be the next country to benefit from China's seemingly insatiable demand for energy, provided it can overcome an almost complete lack of transport links between the neighboring countries.

Mr Mark Dougan, chief representative in Beijing for Barlow Jonker said "Mongolian coal resources are large and they're in a good location for China. This coal will definitely come to the Chinese market. It's just a question of how much and how soon."

Many foreign mining companies are exploring for a share of Mongolia's coal reserves.

OMZ to supply crusher to Ukrainian Yuzhny GOK

OMZ Crushing & Milling Equipment, a division of OMZ Uralmash will supply equipment for a mine crushing facility to Ukrainian iron ore producer Yuzhny GOK. The value of the contract was not disclosed.

The crusher, which will be made at Uralmashzavod, in the first quarter of 2007, will be part of a crushing and loading facility that will operate directly at Yuzhny GOK's open pit mine, reducing ore transportation costs and mine ventilation expenses.

Romanian Artrom & Silcotub report profits in Q1

Romanian seamless pipe makers Artrom Slatina posted a net profit of Euros 3.28 million in the first three months 2.3 times higher than in the similar period of 2005. Silcotub Zalau posted a net profit of Euro 4.88 million in the first three months similar to profit registered in Q1 of 2005.

Artrom Slatina is controlled by the Russian group TMK world's second largest pipe maker while Silcotub Zalau is part of the portfolio of the international group Tenaris the world's biggest pipe maker.

Ruukki to employ Quintiq solutions across enterprise

The Finnish metal solution provider and steel manufacturer Ruukki signed a corporate agreement with Quintiq for deploying the Quintiq planning and scheduling solutions enterprise wide. The corporate agreement between Ruukki and Quintiq is a strategic intent to optimize Ruukki's supply chain. In most subsidiaries the Quintiq solutions will be fully integrated with the Ruukki's SAP Solution and SAP Netweaver platform. Ruukki has operations in 23 European countries and is already successfully using the Quintiq scheduling solution for its steel production plant in Raahe, Finland. Additionally, Ruukki selected the Quintiq Company Planner and Scheduler for its service centers all over Europe.

Ruukki's objective is to specialize by changing from being a reliable steel supplier to become the most desired supplier of metal based solutions for selected customer segments. By expanding the use of Quintiq's state of art technology to other business units Ruukki sees high optimization potential for its supply chain. The goal is to optimize in conjunction with SAP the use and allocation of material based on customer demand as well as to decrease lead times, leading to reduced inventory and a faster and more reliable response to their customers and therefore an improved financial performance. As one of the key capabilities Quintiq is enabling Ruukki to plan and optimize both the production and logistics processes with one single solution.

Rautaruukki Corporation was established in 1960. The Corporation has used the marketing name Ruukki since 2004. Ruukki has operations in 23 countries and employs 12,000 people. Net sales in 2005 totaled Euro 3.7 billion. Ruukki supplies metal based components, systems and turnkey deliveries to the construction and mechanical engineering industries. The company has a wide selection of metal products and services.

Power Machines commissions 25MW power plant at NLMK

Power Machines, Russias leading manufacturer and supplier of equipment for hydroelectric, steam, gas and nuclear plants, reported the successful startup of a power unit with 25MW capacity at OJSC Novolipetsk Steel. The unit is designed for electrical energy production for NLMK own needs.