JSW’s crude steel production in May up by 36% YoY

JSW Steel in a company release said that it has posted a 36% increase in crude steel production in May 2007. It has also shown 19% growth in volumes of HR coil products and 8% growth in galvanized products.

Volume is in million tonnes
Change is with respect to May 2006

The release said that “Volumes are higher over corresponding month of previous year since there was a shutdown of hot strip mill for modernization in May 2006.” It added that HR Plates volumes are lower due to planned shutdown of 25 days for modernization of the plate mill.

India to have coal regulator soon - Report

Times News Network reported that Indian government is finalizing the coal governance & regulation authority bill under which the office of the new regulator responsible overseeing issues pertaining to pricing and supply of coal. As per report, the draft of the new bill is being finalized by the coal ministry in consultation of the planning commission and once it is ready, the coal ministry proposes to issue a note for consideration of the cabinet. The proposed independent regulator will comprise experts with wide experience of the sector.

As per the proposal, the new regulator will help in improving exploitation and allocation of available resources, regulate and fix coal prices including that to be sold through the electronic route, regulate trading margins and enable competitive coal market to take shape for user industries. The new regulator would replace the screening committee that oversees allotment of coal blocks and pricing of coal. It would also finalize the fuel supply and transport agreements with power sector consumers that account for almost 80% of total coal consumed in the country.

Initially the regulatory authority would be funded through the consolidated fund of the budget. License fees, petition fees and other such fee would be consolidated in a separate fund to finance the regulatory body.

Core Steel to set up plant at Mosabani in Jharkhand

It is reported that Mumbai based Core Steel and Power Limited has signed a MoU with the Jharkhand Government to set up a steel plant at Mosabani.

According to reports, the construction will be done in phase wise manner. The first phase is likely to be completed in 20 months. The report adds that the company plans to invest over INR 3,300 crore in its Mosabani project and had already applied for acquisition of four iron ore mines in the state.

As per report, Core Steel and Power Limited have appointed Ranchi based Mecon consultancy firm as their consultant for this project.

NTPC and UP government’s JV to set up 1,320 MW power plant

It is reported that National Thermal Power Corporation is planning to set up a 1,320 MW thermal power plant at its 4x110 MW existing Tanda thermal power plant at Shankargarh in Kaushambi near Allahabad in Uttar Pradesh.

The new 1,320 MW thermal power plant will be setup as a JV between the Uttar Pradesh government and NTPC. Both parties will share the cost of the project equally and all the power generated from the proposed thermal plant will be available to the state of Uttar Pradesh.

Sathavahana Ispat starts relining of BF

Sathavahana Ispat Limited announced that it has decided to shut down pig iron plant at village Haresamudram in Anatapur district of Andhra Pradesh to carry out relining of blast furnace and other repairs.

The release added that the relining will last for about 45 days to 50 days and the plant operations will resume after these works are completed.

Delhi government approves 1500MW Aravali power project

It is reported that Delhi government’s expenditure & finance committee has approved the construction of a 1500 MW coal based Aravali Super Thermal Power Project at Jhajjar.

Sadbhav Engineering in talks to acquire mines - Report

CNBC-TV18 reported that Sadbhav Engineering is in talks to acquire a coal and an iron ore mine and plans to invest INR 1,000 crore over the next five years. The report added that the company is in talks with players in Chattisgarh and Indonesia for coal mines as well as with players in Orissa for the iron ore mines.

The report cites a source as saying that Sadbhav's mining deal is likely to be finalized on October 2007 and that it is also open for a JV with coal or iron ore players for its mine foray.

Sadbhav Engineering already executes mining activities for GHCL. Their strategy is to acquire mines to increase margins earn trading profits and benefit from power opportunities. The mines can serve as fuel for the power plants that they have planned.

NTPC short lists companies for mining contract at Pakri Barwadih block

Times News Network reported that National Thermal Power Corporation has short listed Thiess India and Singareni Collieries for awarding mining contract for its Pakri Barwadih block in the North Karanpura coalfields in Bihar and that the final award of the contract will be on the basis of financial bid which is yet to be completed. The report cites a NTPC official as saying that “We are currently in the process of applying for clearances from different department of the government. Mining is likely to commence at our Pakri Barwadih block from 2008-09.”

About 15 million tonnes of coal is expected to be produced per year from the Pakri Barwadih coalfield.

NTPC has been allotted 2 coal blocks Brahmini and Chichro Patsimal both in Jharkhand where coal would be extracted through a 50:50 joint ventures with CIL. NTPC has also allotted been allotted five more blocks including Kerandari and Chatti Bariatu in North Karanpura, Chhatrasal in Singrauli, Dulanga in the Ib Valley, and Talaipalli in Chattisgarh.” AS per report, NTPC has total mineable reserves of about 5.7 billion tonnes of coal form it’s all the 8 blocks including the Pakri Barwadih block.

NTPC has firmed up plans to boost its coal production capacity to 60 million tonnes in the next 8 years with an investment of INR 500 crore. NTPC’s foray into coal mining is aimed at ensuring timely availability of fuel for its stations and at controlling fuel costs, which constitutes about 50% of its bulk supply tariffs.

NTPC has also recently entered into an agreement with Singareni Collieries for floating a JV to undertake various activities in coal and power sectors including acquisition of coal mines, development and operation of integrated coal based plants and providing consultancy services.

Lanco’s Aban Power Plant registered as CDM project with UN body

It is reported that Lanco Group’s Aban Power Company Ltd has been registered as clean development mechanism project with the United Nation’s framework convention on climate change.

The 120MW gas based combined cycle power plant is located at Karuppur village in Tanjore district of Tamil Nadu. As per report, Aban is the first natural gas based unit worldwide to be registered as CDM Project and will generate about 1.8 million certified emission reductions over a period of 10 years.

Lanco's biomass projects and four hydro projects have already been registered as CDM projects generating 145,000 certified emission reductions per annum and with the addition of Aban, it will generate approximately 0.33 million certified emission reductions per annum. Lanco is also in the process of registering its other renewable energy projects.

PTC India inks power purchase agreement with GEPL

PTC India Ltd announced that it has commenced the long term commercial sale of power generated from Videocon Group’s industrial waste heat recovery based power plant of Goa Energy Private Limited. This is the first long term power purchase arrangement for sale of power from industrial waste heat recovery.

PTC India has entered into a power purchase agreement with Goa Energy Private Limited for purchase of entire saleable energy under power agreement between Goa Energy Private Limited and SGL for a period of 25 years.

Goa Energy Private Limited has set up a power plant with a total capacity of 30MW and achieved commercial operation on June 1st 2007.

ThyssenKrupp builds new tailored blanks plant in Turkey

It is reported that ThyssenKrupp Tailored Blanks group has built a new plant at Bursa in western Turkey and the production will start in September 2007. It will be Turkey's first manufacturer of laser welded tailored blanks.

The new facility will initially operate one laser welding line for linear tailored blanks. The new ThyssenKrupp Tailored Blanks plant will be busy from the start with supplies to the 2 manufacturers and will make blanks for the Fiat Linea notchback sedan and a small van for Fiat and PSA as well as for the notchback version of the Renault Megane.

Tailored blanks are sheets of different thickness, steel grade and coating which are joined together by laser welding. At the car plant, the blanks can be formed for example into doors, tailgates, floors and side members. Tailored blanks are designed from the outset to match the loads in the finished part. ThyssenKrupp Steel, the parent company of ThyssenKrupp Tailored Blanks, developed tailored blanks in the early 1980s.

Car manufacturers including Ford, Fiat, Renault, Toyota, Honda and Hyundai produce around 700,000 vehicles a year in Turkey, mainly for export. Market observers predict that the number of cars produced in Turkey will rise to 1 million per year by the year 2010.

Severstal signed 3 year iron ore pellet deal with Corus

Reuter reported that Severstal will supply 3 million tonnes of iron ore pellets to Corus over three years. Severstal Resurs in a statement said that it had signed a three year agreement to supply Corus with the pellets from its Karelsky Okatysh mining unit in northwest Russia.

Severstal’s Karelsky Okatysh is located in Kostomuksha in the Karelia Republic in the northwest of Russia. It mines low grade magnetite quartzite ores and produces high-quality iron ore pellets with an iron content of 64% to 66%. Karelsky Okatysh operates four major deposits that have an estimated life of 44 years. The average iron content of the reserves at Karelsky Okatysh is approximately 29%. It has three pallet production lines. The total capacity of the three lines is approximately 11 million tonnes.

Severstal Resurs is Russia's 2nd largest producer of iron ore pellets and coking coal. It operates four mining complexes in northwest Russia and western Siberia. Severstal produced 9.5 million tonnes of iron ore pellets and 4.5 million tonnes of iron ore concentrate in 2006.

Severstal and Corus have been working together since 2004.

Venezuela takes over Kobe Steel's Minorca plant

Bloomberg reported that Venezuela's mining company Corp Venezolana de Guayana has taken over the Minorca iron briquette mill in Puerto Ordaz from Japan's Kobe Steel Ltd, which was running the facility for 17 years.

A government news agency reported that Venezuelan government which has been nationalizing industries deemed strategic took control on May 31st 2007 at a mill that produces about 1 million tonnes annually but terms of the takeover weren't disclosed. The two sides agreed to transfer control of the factory March 9th 2007 according to a separate government statement.

It added that all of Minorca's employees were retained through the takeover and the state will work with Kobe Steel on a USD 180 million project to boost production to 1.4 million tons a year.

SMS Demag acquires Hellingrath

SMS Demag announced that it has acquired Hellingrath Gesellschaft für Prozessleittechnik mbH based at Mülheim an der Ruhr in Germany, previously a privately owned company. SMS Demag said that right now, the transaction is still subject to examination and approval by the anti trust authorities.

Hellingrath will continue to operate as a legally independent. Hellingrath generated sales of some EUR 16.5 million in 2006 with a workforce of 85. It has, for more than 60 years, operated in industrial automation with a focus on the European steel industry. Its range of products and services covers all aspects of planning and implementation of electrics and automation projects.

The acquisition is in the wake of the SMS Demag strategy of expanding its scope of electrics and automation services for both new plants and revamps. It is positioned on the market as an integrated system supplier of holistic mechanical electronic solutions as well as electrics and automation systems for the steel industry.

BHP Billiton resolves strike at Samancor

Mining group BHP Billiton announced that the strike over worker's transport at its Samancor mines in South Africa has ended.

Billiton said "Following Samancor Manganese's offer to explore alternative transport solutions and a series of discussions between the National Union of Mineworkers and the Hotazel management the strike at Hotazel manganese mines has been called off."

The National Union of Mineworkers last week said that over 500 miners had downed tools at its mine in the Northern Cape Province over discrimination and the miners were on strike because black workers had to walk 2 kilometer to their nearest bus stop while employees of other races got their transport in front of their homes.

CSC signs long term iron ore pellet contract with Samarco

It is reported that Kaohsiung based China Steel Corporation and Samarco Mineracao SA has signed a new 4 year iron ore pellets contract. Under this new contract, Samarco will supply CSC about 1.9 million tonnes of iron ore pellets in total during 2008 to 2011.

In 1998 Samarco and CSC singed the first long term contract and since then, both parties have enjoyed benefits from good business relationship.

Taiwanese corporation CSC is the sole integrated steel mill with 4 blast furnaces in Taiwan and produces approximately 11 million tons of crude steel per year. CSC officials said the contract will ensure 25% of CSC's annual iron ore pellet demand.

Brazilian corporation Samarco engages in the mining, beneficiation, palletizing and exportation of iron ore pellets, being the 2nd largest one on the overseas pellets market around the world. Samarco sells the pellets to over 15 countries in Europe, Asia, Africa, Middle East and the Americas. In 2006, Samarco sold 14.1 million tonnes of iron ore pellets.

ArcelorMittal launches its new global brand

ArcelorMittal has launched its brand identity and design, created to reflect the identity and values of the new company which was created last year through the merger of Mittal Steel and Arcelor.

A company release said that “To reflect the company’s values and aspirations, the brand is based on the theme of TRANSFORMING TOMORROW. Supporting the central positioning of TRANSFORMING TOMORROW are three main values, –Sustainability, Quality and Leadership.”

Mr LN Mittal president & CEO of ArcelorMittal said that “Today we are announcing what ArcelorMittal stands for, what it intends to achieve and by what values and guiding principles we are going to operate. We wanted a positioning which not only reflects the strategy of the business but also reflects the responsibility we have as the leading player in our sector and one of the world’s largest companies, with major operations in 27 countries and 320,000 employees. We know that our position in the steel industry brings unique responsibilities. We are committed to setting globally recognized standards with the needs of future generations in mind.”

Mr Mittal said that “The steel industry is in a stronger position today than it has been for many years. This is largely due to consolidation and globalization which is helping to create a more stable operating environment. As the sector leader, we expect ArcelorMittal to remain at the forefront of this transformation. This is important for all of our stakeholders. Transforming Tomorrow also reflects the intrinsic role steel has in the world. It is easy to forget the role steel plays in the modern world.” It is in the houses we live, the cars we drive, the trains we travel in. We very much see the purpose of ArcelorMittal as being to continue to develop steel of the highest quality in order to help transform the quality of the world around us.”

Mr Mittal also added that “The launch of the new brand is also an important part of the integration process, in that it creates a common bond for all of our employees and a clear set of values which we intend to be visible in the company at all times. He said that “Integration has been going very well. But clearly the company of our size needed a defined positioning and a clear set of values under which we will operate. The brand has been very positively received by our employees and we will be working to ensure that it remains the guiding principles for the future direction we take as a business.”

ThyssenKrupp selects Sybase iAnywhere RFID technology for slab identification

Sybase iAnywhere announced that ThyssenKrupp Steel, the first steel producer in the world to use RFID technology, has selected RFID Anywhere for its slab identification. The software infrastructure will be used in ThyssenKrupp Steel's new steel mill in the Bay of Sepetiba, Brazil as well as at the European sea harbor and local harbor at Duisburg in Germany to identify steel slabs automatically and to speed up the unloading process.

RFID Anywhere simplifies the development, deployment, configuration and management tasks for highly distributed multi site intelligent sensor networks and abstracts the interaction with the physical network of devices. With support for over forty devices this powerful infrastructure enables the creation of intelligent sensor networks out of the box. By using RFID Anywhere sensors are able to work together as an intelligent network by combining, organizing and coordinating these technologies through a common management structure, advanced feature set and event driven development framework.

ThyssenKrupp Steel recently completed successful pilot trials with 1,000 slabs sent from Brazil and marked with RFID tags. Custom made software applications based on RFID Anywhere were used to tag the slabs in Brazil and identify them at various points throughout their journey. At the harbor in Duisburg, slabs hanging on a crane were identified in a fully automated fashion while being unloaded.

Mr Gerhard Thiel project manager of ThyssenKrupp Steel said that "Using RFID to tag steel slabs enables us to read data over large distances and automatically transfer the information to our IT systems for further processing all without the need for physical contact. The solution developed with the help of Accenture and Sybase iAnywhere enables us to significantly shorten unloading times and thereby achieve cost savings."

ThyssenKrupp’s Brazilian steel mill is currently under construction and is scheduled to start production of 5 million tonnes of steel per year in 2009. Overall, a total of 250,000 slabs will be transported every year 100,000 of which will be processed at ThyssenKrupp Steel's German plants.

WTO panel to asses Argentina's request for sanction against US

Associated Press reported that World Trade Organization has set up an arbitration panel to assess Argentina's request to impose annual sanctions worth USD 44 million against the United States because of illegal duties imposed on steel tubes, drill pipes, castings and other goods used in the oil and gas industry.

The WTO arbitration panel can only decide on the size of the penalty and United States would have to initiate separate proceedings if it seeks to claim that it has brought its fees into compliance with global trade rules.

It is reported that US has challenged Argentina's request for authorization to apply sanctions and that US International Trade Commission would probably revoke the charge, eliminating the need for Argentina to retaliate.

WTO ruled that US antidumping duties on Argentinean oil industry goods violated global trade rules in December 2004. Subsequent decisions confirmed US noncompliance.

Argentina recently said that the USD 44 million represents the amount of trade lost because of the US measure. As per reports, it aims to retaliate by placing additional duties on American goods entering Argentina.

China’s steel industry’s profit up by 3.6 times in Q1

According to a report from China’s National Development and Reform Commission, China’s metallurgy industry had a profit growth rate of 2.8 times among which the steel sector enjoyed 3.6 times of profits growth in January to March 2007 quarter.

An official with NDRC said that "Due to fast growing steel output and steadily rising steel prices steel makers in the domestic market saw a great rise in profits in the first three months of the year."

The steel output growth was attributed to the rapid growth of demand from major steel consuming industries and robust demand in the world markets.

Evraz makes an offer to acquire the entire share capital of Highveld

Evraz Group SA has announced an offer to acquire the entire issued share capital of Highveld Steel and Vanadium Corporation, other than those shares already held by Evraz, for a consideration of USD 11.40 per Highveld share. The consideration of USD 11.40 per offer share will be converted to and payable in cash in ZAR on the basis of the conversion rate which will be published by Evraz on the closing date. The offer is valid till 17:00 South African time on July 4th 2007 unless extended by Evraz in accordance with applicable laws and regulations. Evraz has obtained all necessary regulatory approvals and therefore the offer is not subject to any conditions.

Last July, diversified miner Anglo American said that it planned to sell its 79% stake in Highveld Steel & Vanadium to Evraz and banker Credit Suisse. At present Evraz owns approximately 54.1% of all outstanding shares in Highveld and is required to make a mandatory general offer to all shareholders of Highveld after its ownership position has exceeded 35%. Additionally, Evraz still has an option to buy the Credit Suisse shareholding of 24.9% in Highveld.

Mr Alexander Frolov chairman & CEO of Evraz said that “We believe the price we are offering to be fair and attractive. It reflects the growth of Highveld business and is approximately 31% higher than the price paid by Evraz to Anglo American then equivalent to ZAR 62.36 for a majority shareholding in the company. We believe that this price reflects the full value of the business of Highveld. It reflects the growth of Highveld business and is approximately 31% higher than the price paid by Evraz to Anglo American then equivalent to ZAR 62.36 for a majority shareholding in the company. We believe that this price reflects the full value of the business of Highveld.”

South Africa’s Competition Tribunal approved the ZAR 4.9 billion merger in April, but said that Evraz had to sell off a stake in Highveld Steel & Vanadium’s iron ore and vanadium mine Mapochs and Vanchem plants. This decision was in line with the European Commission’s ruling in February, when it said that the transaction would give rise to competition concerns at all levels of the vanadium chain.

Jiangxi Province to close down 4.65 million tonnes of iron & steel capacity

On May 31st 2007, provincial government of Jiangxi Province published that about 4.65 million tonnes of iron & steel capacity would be closed down or eliminated in three years. The move would save 1 million tonnes of coal, 1.5 million tonnes of water and emission of sulfur dioxide will be reduced by 7000 tonnes per year.

Xinyu Iron & Steel Co Ltd Ganzhou Dongnan Steel Making Co Ltd Fengcheng Sanfu Iron & Steel Co Ltd and Fengxin Xinhengxin Iron & Steel Co Ltd are subject to the clamp down campaign.

According to the central government's requirements of China Jiangxi Province is asked to close 1.5 million tons of backward iron making capacity by the end of 2009 accounting for 3.8% of the China total and 3.15 million tonnes of steel making capacity accounting for 7.6% of the China total. Jiangxi Province must closed down or phase out 1.95 million tonnes of obsolete steel-making capacity by the end of this year.

(Sourced from MySteel.net)

YUSCO increase non nickel SS output by 20%

Reuter citing a Yieh United Steel Corp official reported that Yieh United Steel Corp has boosted its output of products that do not use nickel by 20% and plans further increases as nickel costs soars joining a global trend of substitution and production cutbacks as prices for nickel are at record levels.

As per report, YUSCO has increased production of 400 series stainless steel, which does not use nickel, to 15,000 tonnes per month from 5,000 tonnes per month.

The official said that YUSCO plans to lift non nickel stainless or low nickel products to around 25% of its monthly 80,000 tonne output with the amount of stainless steel containing nickel being reduced. The official added that "With nickel prices so high, having risen so much since last year, it now accounts for over 80% of our costs, so the global trend is to continue expanding the non or low nickel capacity."

The price of nickel has more than tripled since the beginning of last year on dwindling supplies and a 15% rise in stainless steel output during 2006. Rising production of stainless in China, which notched up production growth of 37% in 2006, has been a key factor fuelling prices.

Baosteel’s 3 iron ore vessels in operation

It is reported that 3 oceangoing freighters marked by Baosteel have been put into use on China and Australia route. The three 200,000 DWT freighters, namely BAOSTEELEXPEDITION, BAOSTEELEVOLUTION and BAOSTEELELEVATION, have been put into operation in January, March and April 2007 respectively.

The three freighters will deliver about 6 million tonnes of Australian iron ore annually for Baosteel and are expected to save costs of CNY 100 of million in 2007.

Baosteel signed four long term ocean shipping contracts during 2003-04 with Japan's Mitsui OSK Lines for build three custom 200,000 ton freighters for the steel maker's ore shipping from Australia, with operation scheduled in the first half of 2007 and another 300,000 tonnes freighter, for ore shipping from Brazil, with operation slated for early 2009.

(Sourced from MySteel.net)

CORUS to increase flat product prices in UK by 5% to 12%

CORUS has announced that it will increase its flat rolled steel prices in the UK between 5% to 12%.

The release added that typical increases would be GBP 20 for hot dipped galvanized, GBP 35 for CR coil and GBP 45 for HR steel products.

CORUS is Europe's 2nd largest steel producer with revenues of GBP 9.7 billion and an annual crude steel production of 18.2 million tonnes in 2006. CORUS is a subsidiary of TATA Steel, the world's sixth largest and second most global steel producer with a combined presence in nearly 50 countries.

Maanshan inks long term iron ore agreement with Kumba

INTERFAX CHINA reported that Maanshan Iron and Steel Co Ltd, a Shanghai listed Maanshan Iron and Steel Group’s subsidiary, has entered into a 10 year off take agreement with South African based Kumba Iron Ore.

Further details are not available as yet.

Pallinghurst plan funding for Consolidated Mineral’s growth

Bloomberg reported that Pallinghurst Resources Fund LP, AMCI and partners, bidding for Consolidated Minerals Ltd, plan to provide USD 250 million in funding to the Australian mining company for acquisitions and growth. They plan to turn Consolidated Minerals, which supplies manganese and nickel, into a diversified mining company worth as much as AUD 10 billion.

Pallinghurst and AMCI are leading investors who offered in February 2007 to buy Consolidated Minerals in a bid valued at AUD 625 million (USD 520 million). Pallinghurst and partners are offering AUD 1.38 per share in cash and two shares in a new company for every five in Consolidated Minerals. Investec plc which owns South Africa’s 5th biggest bank and South Korean steelmaker POSCO are also partners in the bid for Consolidated Minerals.

Mr Brian Gilbertson former CEO of BHP Billiton in an interview in Melbourne said that "I can see very substantial growth in this company. If we bring in those AMCI projects, it would bulk up the company relatively quickly."

Mr Hans Mende founder of AMCI said that AMCI will help Consolidated Minerals invest in coal and iron ore projects. He said that coal project will produce a few million tons a year. The focus would be on building new projects, rather than buying a mature mine.

Kunshan Dageng Stainless Steel's plate mill starts operations

It is reported that China based Kunshan Dageng Stainless Steel’s new medium and heavy plate mill has come into operation.

Kunshan Dageng Stainless Steel previously produced 80,000 tonnes per year of medium plate with width of 2500mm and thickness of 60mm.

The new plant is designed with annual capacity of 150,000 tonnes per year and can produce stainless medium plate with width of 3000mm and thickness of 80mm.

Kunshan Dageng Stainless Steel mainly purchases 300 series slab from POSCO and some Japanese steelmakers. The medium plate it produced will be used in industries such as automobile, construction and medical treatment.

An official from Kunshan Dageng Stainless Steel said that "We mainly focus on East China for the moment and will expand our market if operation is gratifying."

Mongolia Energy purchases title to Mongolian coal mine

Mongolia Energy Corp announced that it has purchased a 32,000 hectare mine in western Mongolia. The mine is estimated to hold between 3.4 billion to 4.4 billion tonnes of coal, as well as other minerals.

With this acquisition, Mongolia Energy Corp has doubled its mining rights in Mongolia to 66,000 hectares.

Additionally, Mongolian Energy Corp. has attained the rights to purchase the title to mine an additional 32,000 hectares, following its successful exploration.

Mongolia Energy Corp. was founded in 1999 as a telecommunications branch of Hong Kong developer, World Development. Besides its mining operations, the company also has investments in property and aircraft charter services.

Kardemir starts producing rails

It is reported that Karabük Iron and Steel Factory has begun, in its freshly replenished facilities, producing 72 meter long rails, in accordance with the internationally accepted quality standards.

Kardemir said that the test production period in the rolling mills was successfully completed. Mr Osman Kılavuz GM of Kardemir informed the Anatolia news agency that the company produced 1,000 tonnes of such rails and transported them to the stock field last week.

He said it will be possible from now on to produce such quality rails in Turkey. Mr Kılavuz added that "We may even export them to Europe or other close markets."

The establishment of the rolling mills began last year and was completed in less than a year.