September, 07 2007
TATA Steel signs bonus agreement with worker union
TATA steel announced that a memorandum of settlement has been signed between TATA Steel and the TATA workers’ union on September 5th 2007 for annual bonus for the accounting year 2006-2007. The memorandum of settlement dated August 20th 2002, which was valid for 5 years till the accounting year 2005-06 has been extended for the accounting year 2006-07 also.
Mr B Muthuraman MD of TATA Steel and Mr Raghunath Pandey president of TATA workers’ union and senior executives of the union office bearers signed the settlement in the board room at Jamshedpur in the presence of the conciliation officer and deputy labor commissioner of Jamshedpur.
In accordance with it, the annual bonus for the accounting year 2006-07 is to be calculated on the basis of 50% on production and 50% on profitability. Based on this calculation, the annual bonus works out to 9.7% on production and 10% on profitability, thus making a total of 19.7% of salary or wages paid for the year 2006-2007.
However on the request of the union and in consideration of satisfactory performance during 2006-07 and in order to keep up the morale of the employees, it was agreed to round off the bonus percentage for the accounting year 2006-07 from 19.7% to 20% of salary or wages paid for the year.
At 20% bonus, the minimum and the maximum annual bonus payable will be INR 9083 and INR 69452 respectively. The total pay out on account of annual bonus for the year 2006-2007 will be INR 107 crores approximately and nearly 33000 employees would be paid annual bonus.
In a communiqué jointly signed by the MD and president of TATA workers’ Union, all the employees are being informed about the payment of annual bonus.
Indian Railways to go in for stainless steel wagons
It is reported that the central railway workshop at Golden Rock near Tiruchirapalli in Tamil Nadu would soon start manufacturing goods wagon out of stainless steel sheets instead of the conventional mild steel.
Mr V Carmelus chief mechanical engineer of Southern Railways said that "It was a policy decision of the railway ministry to go in for stainless steel wagons and the workshop at Golden Rock would be the first among the four workshops nominated by the ministry to produce them. The first batch of proto type wagons would hopefully roll out of Golden Rock by November 2007." He added that flagging of the first batch of 4 refurbished passenger coaches meant for Nilgiris Mountain Railways, while remaining 7 coaches would be ready in another six months.
An order has been received to manufacture 240 stainless steel wagons, called BOX-HL, meant to transport materials like iron ore and coal. The other factories chosen for the purpose include one at Jabalpur, Amritsar and Samastipur. The stainless steel wagons would carry more loads and would be cost effective for maintenance and operations.
The workshop, which has undergone expansion, plans to increase production of wagons to 1,000 units per annum from the present capacity of 700 units per annum.
NTPC eyes TSPL to boost manufacturing capacity
It is reported hat National Thermal Power Corporation Limited is exploring the possibility of acquiring Karnataka based public sector firm Tungabhadra Steel Products Limited as part of a strategy to enhance its equipment manufacturing capability and reduce dependence on BHEL.
Official sources said that “NTPC is looking into the possibility of a takeover of Tungabhadra Steel Products Limited and initial discussions have already been held.” They added that a team of NTPC officials have already visited TSPL unit at Bellary in Karnataka to take first hand information and held discussions with its officials.
The move is part of efforts being undertaken by NTPC to increase its manufacturing capacity following power ministry’s directions in this regard. The ministry wanted NTPC to get into manufacturing as it feels BHEL will not be able to meet its demand for adding generation capacity of 78,000 MW during 2007-12. Power ministry had also earlier partially blamed BHEL for falling almost 50% short of the 10th plan target of adding 41,000 MW fresh generation capacity in India.
Tungabhadra Steel Products Limited, a subsidiary of Allahabad based Bharat Yantra Nigam Ltd, is under the administrative control of union ministry of heavy industries which controls central government’s 79% equity. It has been posting losses and the union cabinet had last year approved a proposal to either hand it over to another PSU or sell it to private sector players.
TATA Steel starts acquiring lands for titanium dioxide project in TN
PTI reported that TATA Steel has started acquiring lands for their proposed titanium dioxide project at Sattankulam and Tiruchendur taluks in Tuticorin district of Tamil Nadu.
Mr R Palaniandi DC of Tuticorin said that TATA Steel had obtained copies of documents relating to 100 acres from patta holders and signed agreements for acquiring 10 acres of land. He added that TATA Steel has set a target of procuring 1,000 acres by the end of 2007 to start setting up the desalination plant and factory.
Jharkhand to get more mineral zones
Mr Madhu Koda chief minister of Jharkhand said that the mineral belt of the twin districts of Singbhum and Seraikela Kharswan would soon be declared mineral zones.
Mr Koda said that the state government would seek a special financial package from the centre for the growth of the zone, which would, in turn, accelerate development of the entire State. He added that the Jharkhand government has sent a proposal to the union railway minister to provide a special rail link in the zone connecting it with Mumbai and Howrah.
Haryana to spend heavily to strengthen power sector
PTI quoted Mr Bhupinder Singh Hooda chief minister of Haryana as saying that state government has given top priority to the power sector with an aim to supply adequate power to its consumers and would spend a whopping INR 24,312 crores to strengthen the power transmission and distribution systems during 11th Five Year Plan period.
Mr Hooda, while laying the foundation stone of 33KV sub station at Bichpari said that "During next 2 and half years, Haryana would generate an additional 5000MW of power."
He added that a number of power projects had been initiated including setting up of a 600MW thermal plant at Yamuna Nagar and 1200MW thermal plant at Khedar in Hissar district. He further added that Haryana would also contribute 50% of power to the proposed 1500MW power plant at Jhajjar slated to be ready before the commencement of 2010 Common Wealth Games. Another 1320MW power plant would be set up at Jhajjar and the state would get 90% of the power generated by this project.
Productivity linked rewards announce for 66,000 port & dock employees
It is reported that about 66,000 port and dock employees would get productivity linked rewards of up to INR 6,000 on September 1st 2007 for the fiscal 2006-07.
Mr TR Baalu union minister for shipping, road transport and highways said that “The productivity linked rewards for the year 2006-2007 is due for payment on or before September 1st 2007. The Indian Ports Association has made the computation of productivity linked rewards for the year 2006-2007 as per the agreed performance parameters and methodology and the productivity linked rewards percentage is arrived at 21.38%, subject to the maximum ceiling of 20% of the salary.” He added that the maximum payment per employee will be INR 6,000. This will benefit about 66,000 port and dock workers, employees and officers and the financial implications will be about INR 40 crore.
The expenditure on account of productivity linked rewards shall be met by the major port trusts and dock labor boards from their own resources, without budgetary support from the government. The port and dock workers of major ports and dock labor boards are not covered by the Payment of Bonus Act 1965.
A new settlement was signed between the port management and federations on the new productivity linked rewards scheme on April 10th 2007.
Under the new scheme, there are 3 parameters:
1. Average turnaround time of ships with weightage of 30%
2. Average ship berth day output with weightage of 35%
3. Unit cost of handling with weightage of 35%
Kandla Port Trust reduces size of its SEZ
DNA recently reported that the land size of the port based special economic zone envisaged by Kandla Port Trust has been reduced, conforming to the ceiling set by central government but there is no change in the investment figure of INR 7,300 crore initially decided by Kandla Port. As per report, the department of commerce SEZ Section under the union ministry of commerce and industry recently formally approved Kandla Port's plan for developing the SEZ on 5,000 hectares, instead of the originally proposed 6,030 hectares.
Mr A Janardhan Rao chairman of Kandla Port said that "We have started the survey of the available land conforming to the ceiling of 5,000 hectares set by the central government. Looking at the time period for its implementation, the investment is expected to be almost same, even after cutting the size. The SEZ will be developed at Kandla and Tuna ports and will be connected through a contiguous corridor. Initially, KPT had proposed 3,694 hectares of land at Kandla and 2,400 hectares at Tuna, but after the resizing, Kandla will have only 2,000 hectares, while almost 600 hectares of land has been added to Tuna."
Mr Rao also informed that the survey would be over in another fortnight. The report will be forwarded to the ministry for its clearance and then companies will be invited to set shop in the port based special economic zone.
A senior Kandla Port official said that "The resizing has been done keeping in the mind the availability of trade at these locations. Tuna is already under development and the barge handling facility is expected to get operational very soon."
The development of the SEZ will begin with a 1,000 hectares area on Kandla first, followed by remaining land and Tuna port. The port based special economic zone, once accepted in principal, will be the largest SEZ in Gujarat. Kandla Port has chalked out space for 228 units and priority will be given to the export oriented units like jewellery, steel and petroleum products.
Indian Railways to set up a 10 MW wind mill in TN
It is reported that Indian Railways is planning a windmill project to generate 10MW power in Madheypura near Chennai.
Mr R Velu union minister of state for Railways, while speaking at a 2 day conference of the chief electrical engineers stated that the windmill project being planned at Chennai is a welcome step. He also called for planning similar projects utilizing renewable sources of energy so as to generate electricity with minimal of running expenditure.
Mr Naran Bhai J Rathwa also the union minister of state for Railways said that the performance of electrical assents has further improved by over by 19% during the April to July 2007 period which enabled Railways to haul higher traffic and achieve the target. He added that new factory which is coming up at Madheypura for this purpose should be set up early so that the deficit of electrical locomotive is timely met.
McNally secures INR 90 crore crane order from Mazagaon Dock
McNally Bharat Engineering Company Limited recently announced that it has received an order for a 300 tonnes Goliath crane from Mazagaon Dock Limited valued at INR 89.86 crores.
Foundation stone laid for 1,000 MW Vallur power project in TN
It is reported that Mr Sushilkumar Shinde union power minister has laid the foundation stone for NTPC-Tamil Nadu Energy Co's 2x500 MW Vallur thermal power project at Ennore in Tamil Nadu.
The 1,000 MW power project, estimated to cost around INR 5,400 crore, will supply 750 MW to Tamil Nadu Electricity Board and the remaining to Kerala, Karnataka and Ponducherry. The 4.62 million tonnes per annum coal requirement for the project will be met by the Mahanadi Coal Field at Talcher in Orissa.
GMR Energy bags Holi Bajoli hydel project in HP
BL reported that GMR Energy, after paying INR 82 crore to Himachal Pradesh government as premium upfront money, has been awarded the 180MW Holi Bajoli hydel project, which is to be built on the Ravi river in Chamba valley. The project has been awarded to GMR Energy on build own operate transfer basis for a period of 40 years from the start of commercial operations.
Mr BVN Rao director of GMR Energy, while handing over the cheque of INR 82 crore to Mr Virbhadra Singh chief minister of Himachal said that “Work on the project will start sometime next year and it will be completed by 2014. It will be a run of the river project and on completion will supply power to Himachal as it has recorded a high demand growth but faces a large power deficit.”
IVRCL Limited bags work orders worth INR 320.21 crores
IVRCL Infrastructures & Projects Limited announced that it has been awarded the following irrigation works of an aggregate value of INR 320.21 crores by the public health and engineering department, government of Rajasthan in Ajmer and Jodhpur districts
1) Execution of works related to supply of water from Narmada Canal in Jalore district for Jalor town and 281 villages through various off take like, construction of RWR water treatment plant, 33/6.6 KV switch yard, P L&J of clear water transmission main and related works between RD-44.22 of Narmada main canal and Ahore and civil, mechanical, electrical & instrumentation work at various pumping stations complete job as per scope & specifications on single point responsibility basis turnkey job contract including necessary design & operation & maintenance for 5 year. The value of the work is INR 310.12 crore.
2) Work of providing, laying, jointing, testing and commissioning of 80mm to 200mm diameter AC pipe line and laying, jointing, testing and commissioning of 100mm to 250mm diameter DI pipe lines of RWSS originating from Kishangarh PS under FCP Arain to Kishangarh. The value of work is INR 10.09 crore.
SAIL BSP team wins TATA Crucible Business Quiz 2007
SNS reported that pair of Mr Chandrasekhar and Mr Ramani from Steel Authority of India Limited’s Bhilai Steel Plant has won the Bhubaneswar Finals of TATA Crucible Business Quiz 2007. Mr Sanjay Pattnaik chief resident executive of TATA Steel Limited distributed the prizes to the winning team.
TATA Crucible’s special feature Pyramid quizzing enhanced the totality of business quizzing and proved to be a challenging approach towards judging the knowledge, capability, promptness and skills of the contestants during the intense quizzing sessions.
The TATA Crucible Quiz 2007 commenced its first regional round in Chennai on August 11th 2007 followed by regional rounds in Hyderabad, Delhi, Chandigarh, Cochin and Kolkata.
Teesta Hydel project stage V to be commissioned from December 2007
BL reported that Sikkim’s first mega hydel power project, the 510 MW Teesta Hydro Power Project Stage V located at Dikchu and Sirwani near Singtam in East Sikkim is almost ready and is scheduled to be commissioned from December 2007.
Final stage of the work is being done at the powerhouse site at Dipudara where Japanese technicians from Toshiba are setting up 3 turbines and also training their Indian counterparts. With a capacity of 170 MW each, the turbines will be dependent on water availability. The waters of the Teesta River will be diverted from the Dikchu dam site through an 18 kilometer long tunnel to feed the Dipudara powerhouse.
Work on the mega project commenced in 2001, after nearly three decades of technical, socio economic and environmental feasibility studies and preparations followed by clearance from the central government.
Mr Subhash Roy executive director of National Hydroelectric Power Corporation said that “All the project components will be completed by December 2007 and the first turbine will start turning by January 2008. The other two turbines of 170 MW capacities will be commissioned sequentially on February or March 2008.”
Teesta Hydro Power Project will produce 510 MW of power, of which Sikkim will get a share of 12 % and plans to sell the surplus power to the national grid. Major beneficiary States will be Bihar, Sikkim, West Bengal, and Orissa. The estimated cost of the project after its completion is INR 2,198.04 crore.
ArcelorMittal receives DOJ approval for sale of Sparrows Point
ArcelorMittal announced that the company has received approval from the United States Department of Justice to sell its Sparrows Point facility. A joint venture entity sponsored by Esmark Incorporated and Wheeling Pittsburgh Corporation with participation by industry and institutional investors will purchase the facility for an enterprise value of USD 1.35 billion. The transaction is expected to close in October of this year and is still pending approval from the United Steelworkers.
Under the terms of the agreement, ArcelorMittal will divest the related railroad, intellectual property and other assets associated with the Sparrows Point facility as part of the transaction. The Sparrows Point facility in 2006 generated an EBITDA of USD 143 million. These results include the impact of Profit Sharing and VEBA of USD 30 million.
Mr Aditya Mittal CFO and head of Flat Carbon Americas of ArcelorMittal said that "We are pleased that the Department of Justice has approved the sale of the Sparrows Point facility. This transaction will permit ArcelorMittal to close the disposal program related to our merger and reinforce our already solid financial structure."
ArcelorMittal USA formerly known as Mittal Steel USA with its affiliates is the largest steel producer in the North America and the largest integrated steel producer in the United States. It serves a broad US manufacturing base. ArcelorMittal USA is a subsidiary of ArcelorMittal.
POSCO builds auto steel plate plant in Mexico
It is reported that POSCO had begun constructing a 400,000 tonnes automotive steel plate plant in Mexico that would firmly seat the Korean company at the core of the North and Central America's auto-making industry.
The USD 250 million facilities to be completed in June 2009 will mainly produce zinc-plated steel alloy plates and zinc-plated steel plates for carmakers in Mexico and the US.
Mr Yoon Seok-man president of POSCO Mr Eugenio Hernandez Governor of Tamaulipas, Mr Rocio Ruiz C vice economy minister of Mexico, Mr JC Won Ambassador to Mexico and 200 some other Korean and local business representatives attended the groundbreaking ceremony at the Altamira Industrial Park in Mexico's eastern state of Tamaulipas.
Mr Yoon said “The successful operation of POSCO's Continuous Galvanizing Line will engine our growth as the global auto steel plate leader.''
POSCO's added that production in the area is also expected to help local carmakers like Hyundai Motor in the Americas to have a stable supply. With POSCO's operation of a 170,000 ton auto steel processing center in Mexico City earlier this year, the company has now systemized a full network of steel plates production process and sales.
MEPS forecast SS and nickel prices
MEPS reported that stainless selling prices are set for a hard landing as alloy surcharges will show significant MoM declines until at least October. Type 316 figures for September are almost USD 1,100 below those in August and October's forecast to be another USD 670 per tonne lower. Moreover, basis values are not likely to improve in the short term. A noticeable transaction price recovery is not, therefore, anticipated until the first quarter of 2008 due to weaker market conditions.
MEPS added that distributors are expected to re-evaluate their stock levels early in the New Year. Mill orders should then increase. However, we do not anticipate the same upturn as recorded at the beginning of 2006. Buyers will remain wary as they continue to count the cost of the recent sudden collapse in the value of their inventories. For this reason only a steady transaction price improvement is forecast for 2008.
MEPS also added that as predicted in July 2007 nickel prices fell under the USD 30,000 per tonne mark during August 2007. However, the rate at which it continued to drop was greater than anticipated with values falling to almost USD 25,000 per tonne by the middle of the month. Stocks at the LME climbed above 20,000 tonnes for the first time since May 2006 when at that time the cash figure stood at around USD 21,000 per tonne. Stainless mills are not expected to increase nickel purchases while high volatility remains. This should result in stock climbing higher causing the nickel cash monthly average figure to slip further in the short term. Prices are forecast to stabilize during the fourth quarter of 2007 and into 2008 as stability returns to the stainless market.
Delong takes 4.4% stake in Cape Lambert
Australia's Cape Lambert Iron Ore Ltd announced that Singapore listed Delong Holdings Ltd has taken an initial 4.4% stake in the company through the conversion of 12 million unlisted options, increasing its cash reserves by about AUD 4.6 million.
Delong, which owns Chinese steel company Delong Steel, will further lift its stake in the iron ore miner to 13.25% before September 30th 2007, converting another 28 million options and raising about AUD 10 million.
The company added that the first payment for the sale of 70% of its Cape Lambert iron ore project to Mr Liguo Ding chairman of Delong, will now be made on or before September 30th 2007 as the Chinese investor has requested that the purchaser be Delong instead of Beijing based Best Decade.
Key points:
1. Delong Holdings Ltd converts 12 million unlisted Options in CFE, increasing cash reserves by approx AUD 4.6 million
2. Delong now hold a 4.4% stake in the Company
3. Prior to September 30th 2007 Delong will convert a further 28 million unlisted Options, lifting its stake in CFE to 13.25% and providing a further approx AUD 10 million to CFE
4. First payment of sale agreement (approx AUD 72 million) delayed by mutual agreement to September 30th 2007
Cape Lambert said "By taking such a meaningful stake in the company Delong has not only provided the company with a significant boost to existing cash reserves, but also gives a strong commitment of the role they would like to play in the company and its development moving forward.”
Russel Metals buys JMS Metals Services for CAD 125 million
Russel Metals Inc announced that it has entered into a share purchase agreement to acquire 100% of the outstanding capital stock of JMS Metals Services Inc and related companies an American metals service center. The total transaction value will be approximately CAD 125 million and will be funded from the CAD 207 million cash balance of Russel Metals as of June 30th 2007.
JMS was founded in July 1990 and is a full line distributor of steel and aluminium products with eight strategically located processing and distribution facilities in Alabama, Arkansas, Georgia, Kentucky and Tennessee. JMS revenues are expected to be approximately CAD 200 million for the current year ended December 31st 2007. The transaction is expected to close at the end of the third quarter.
Mr Bud Siegel president & CEO of Russel Metal said that "The acquisition of JMS provides Russel Metals with a new geographic presence in the USA and a management team that will further grow our U.S. business, both organically and through further acquisitions. We have patiently waited for over four years to find a company such as JMS where we are completely comfortable that the culture and focus is similar to ours and that all parties feel the transition will be seamless in nature."
Mr Brian Hedges executive VP & CFO said that "JMS is an excellent addition to our metals service center segment and this immediately accretive investment will continue to strengthen our ability to pay our industry leading dividend."
Russel Metals is one of the largest metals distribution companies in North America. It carries on business in three distribution segments: metals service centers, energy tubular products and steel distributors under various names including Russel Metals, AJ Forsyth, Acier Leroux, Acier Loubier, Acier Richler, Arrow Steel Processors, B&T Steel, Baldwin International, Comco Pipe and Supply, Fedmet Tubulars, Leroux Steel, McCabe Steel, Megantic Metal, Metaux Russel, Milspec Industries, Pioneer Pipe, Russel Metals Williams Bahcall, Spartan Steel Products, Sunbelt Group, Triumph Tubular & Supply, Wirth Steel and York-Ennis.
NDRC publishes eliminated obsolete steel capacity in H1
China’s National Development and Reform Commission has published the enterprise list of obsolete capacity which has been shut down and eliminated in the first half of 2007.
Mr Ma Kai director of National Development and Reform Commission while speaking at a State Council conference held earlier on April 27th 2007 revealed that 10 provinces/municipalities ie Beijing, Hebei, Shanxi, Liaoning, Jiangsu, Zhejiang, Jingling, Shandong, Henan, Xinjiang had signed first round of written commitments to shut down and eliminate outdated iron making capacity and obsolete steelmaking capacity of 39.86 and 41.67 million tonnes respectively in 344 enterprises during the eleventh "Five-Year" Plan with 22.55 and 24.23 million tonnes to be closed down by the end of this year.
Five out of the above mentioned steelmaking provinces, ie Hebei, Shanxi, Henan, Jiangsu and Shandong are responsible for 70% of the China outdated iron-making capacity and 50% of obsolete steelmaking capacity.
Latest statistics show the 10 provinces/municipalities have so far washed out backward iron making capacity and obsolete steelmaking capacity of 9.69 and 8.73 million tonnes respectively accounting for 43% and 36% of scheduled targets.
Shanxi Province has eliminated another 2.98 million tonnes of outdated iron making capacity out of the commitment. Besides, Ma'anshan Steel which is not included in the commitment has shut down five 300 cubic meter blast furnaces representing iron making capacity of 1.75 million tonnes.
NDRC held a conference on May 31st 2007 to discuss the written commitments for the second round of obsolete steel capacity elimination with 18 provinces/municipalities including Tianjin and Baosteel Group.
Mr Luo Bingshen VC and secretary general of China Iron & Steel Association on July 30th 2007 said that the second round of obsolete steel capacity elimination is on the way and related provinces/municipalities will soon sign written commitments with NDRC to wash out obsolete capacities.
(Sourced from MySteel.net)
Lion Corp mulls steel mill in Vietnam
AP reported that Malaysian conglomerate Lion Group is considering plans to build a USD 7 billion steel mill in Vietnam as part of its regional expansion.
Lion Group in a statement to the stock exchange said that it has teamed up with Vietnam's state owned Shipbuilding Industry Group to conduct a feasibility study of the project. It added that "Once the feasibility study is completed and approvals are obtained, a consortium will be formed to undertake the steel plant project. The facility is earmarked for completion in the next 10 to 15 years.”
The Lion Group is involved in a wide range of businesses from steel to property development. It has operations in the region including Indonesia, China, Taiwan and Hong Kong, as well as the United States and Mexico.
Vinashin is the largest shipbuilding company in Vietnam and is expanding its operations into other areas such as financial investment and transportation services.
Al Ghurair to expand new CR and galvanizing facilities
MEsteel.com reported that Al Ghurair Iron & Steel promoted by the Dubai based Tradeline group which is investing more than USD 100 million in a cold rolling mill and galvanizing complex in the UAE plans to almost double the new facilities' capacities in a second phase of investment.
The United Arab Emirates' first CR and galvanizing plant is being built in two stages. The first stage will comprise a 250,000 tonnes per year CR mill which will start up in January 2008, a 350,000 tonnes per year pickling and oiling line which is expected to be commissioned in December 2007 and a 200,000 tonnes per year galvanizing line to start up in February 2008.
In second phase, the CR mill capacity will be raised to 420,000 tonnes per year with the addition of an extra reversible stand and the pickling line capacity will increase to 500,000 tonnes per year. The additional CR output will be used to feed a new 200,000 tonnes per year aluminum-zinc coating line.
Mr Abu Bucker Husain CEO of Al Ghurair's said that “Phase two of the project will start a year after the first phase is completed. We see demand in the region especially in the UAE as there are no flat product manufacturers here. The construction and economic boom in the region, cheap and reliable energy and the geographical location of the UAE are what makes this project economically attractive.”
Mr Husain said that the end users will mainly be the construction industry, roofing, sheeting and cladding manufacturers as well as the air-conditioning industry. The hot rolled pickled and oiled coil will be supplied to service centers locally as well as exported to Europe, which in turn supply to the automotive and construction industry. The project was originally due to be completed in September 2007, but was postponed a few months because of delays in getting local statutory approvals.
Panzhihua to build USD 2 billion vanadium titanium steel plant
ANTARA News reported that China’s Panzhihua Iron and Steel Group has reached a framework agreement with local government on building a vanadium titanium steel production facility in Xichang a city in southwest China's Sichuan province.
The report added that Panzhihua Iron and Steel Group plans to invest CNY 15 billion (USD 2 billion) in the project. The company expects the project to be able to produce 4 million tonnes of iron, 3.6 million tonnes of steel, 3.5 million tonnes of hot rolled steel plates and vanadium slag and 200,000 tonnes of vanadium titanium steel per annum in about 3 years.
China Cosco to make USD 4.6 billion acquisition on dry-bulk fleet
China Knowledge reported that China Cosco Holding Co Ltd a leader in Asia's container shipping industry will be spending USD 4.6 billion to buy its parent company China Ocean Shipping Co.
In the past year, China experienced a surge in raw materials import and the rates had since doubled. With the acquisition of the largest fleet of dry bulk ships from the parent company, Cosco will add dry bulk vessels into its current fleet size and thus strengthen its position in imports to meet rising demands.
Cosco had made a statement that it would issue 864.3 million a share to the parent company valued at CNY 16 billion and the remainder will be paid in cash part-funded by a share sale. With this acquisition the Baltic Dry Index a tracking of chartering rates soared 124 points recently closing at an all time high 7, 909.
As of end 2006, Cosco operated 139 container vessels and will buy an additional 412 vessels under this deal thereby securing its place as a global shipping player in terms of the fleet capacity.
An analyst at SinoPac Securities forecasts that prospects for the dry bulk market will remain robust for the next couple of years. With escalating demand for iron, ore and coal in countries like China and India dry bulk trade will continue to see growth from 2007 to 2010 at 5% a year.
Metex Yekaterinburg says Maxi Group to have hard time entering weldless pipe market
UrBC citing Mr Sergey Chelkov sales manager of Metex Yekaterinburg as saying that “Maxi Group is going to have a hard time breaking into the weldless pipe market; such pipes are made by a great number of companies, so the competition is quite fierce.”
Mr Chelkov believes that because of this competition, Maxi Group will spend a lot of time finding its customers and will even have to sell at low prices. He added that “If they want to stay on the market, their weldless pipes must be cheaper than those of their competitors.”
Maxi Group has recently started putting up a weldless pipe production plant in Revda; experts tend to feel the company is going to experience a number of difficulties winning its share of the market.
Macarthur Coal denies job cuts due to profit slide
Macarthur Coal announced that redundancies at one of its central Queensland mines are not linked to a hefty downturn in profits. Macarthur reported an after tax profit of AUD 66 million for the last financial year down from AUD 150 million the previous year.
The report cited Mr Ian McAleese a spokesman of Macarthur Coal as saying that the job cuts have nothing to do with a lower than expected bottom line. He added that "That's not the case. The job losses are basically linked to Macarthur Coal moving from using a contract miner to becoming an owner operator."
The last of 136 employees who have been sacked at the Coppabella coal mine are expected to finish work soon.
Usiminas Mecânica posted ten fold higher net income
Usiminas Mecânica a Usiminas System’s capital goods and service company reported that its January to June 2007 period net income to reach BRL 36 million a ten fold increase from January to June 2006 peroid.
Usiminas said that such a good performance is the result of a large long term project portfolio, including the erection of Gerdau Açominas’ Sinter Plant II and the supply of structures, equipment and erection services for Alumar, in the state of Maranhão and Alunorte expansion, in the state of Pará.
Japan import of iron and steel in July up 4.2% MoM
YIEH reported that Japan's iron and steel import volume was around 720,000 tonnes in July 2007 up by 4.2% MoM and rose by 14.3% YoY. It added that import volume of ordinary steel was 296,000 tonnes, decreasing by 7.4% MoM and increased by 10.9% YoY. This is the first time monthly production has lessened than 300,000 tonnes.
For the import volume of ordinary steel, sections was 13.000 tonnes, thick plate was 80,000 tonnes, hot dip galvanizing steel was 27,000 tonnes and cold rolled steel was 80,000 tonnes.
AK Steel adopts EPO for galvanizing operations
It is reported that AK Steel Corp has adopted the Maxager Enterprise Profit Optimization platform to help it improve performance in its hot-dipped galvanizing operations.
As per report Maxager uses margin and production velocity information to analyze performance history and to generate realistic forward modeling, so managers can analyze their return on asset performance with greater insight.
Mr Douglas Gant VP sales and customer service of AK Steel said that "Maxager's graphic depiction of our operation's profitability provides another dimension to our ability to analyze our product portfolio.” He added that “Being able to better portray the true profit potential of our business operations should allow us to make better decisions.”
Chongqing Iron and Steel recorded on production during the first half
It is reported that Chongqing Iron and Steel released the January to June 2007 financial report based on China Accounting Rules. Chongqing Iron and Steel realized revenues of CNY 5,723.40 million from main businesses, operating profit of CNY 291.04 million, net profit of CNY 263.93 million up by 676.19% YoY as compared to January to June 2006.
Chongqing Iron and Steel during January to June 2007 period has produced 679,200 tonnes of coke, 1,458,100 tonnes of pig iron, 1,675,600 tonnes of steel and 1,601,000 tonnes of finished steel, up by 6.07% YoY, 17.11% YoY, 17.04% YoY, 18.71% YoY respectively compared to January to June 2006 making new records. Meanwhile, the company took measures to decrease costs and consumed energy, with 38 out of the 59 comparable technology and economic indexes renew the records, with the ratio reaching 64.40%.
Nickel, chromite exploration in Hormuzgan
According to Iran Daily, explorations are being conducted in the eastern regions of the southern province of Hormuzgan for nickel and chromite.
Mr Behrouz Borna director of exploitation affairs at Iran’s National Geology and Mineral Exploration Organization was quoted by the Persian daily Donyay-e Eqtesad as saying that an area stretching from eastern Hormuzgan province to southeastern Sistan-Baluchestan province is being studied for nickel and chromite deposits.
He further stated that explorations are planned in each province according to its geological characteristics. He also said that research has begun along Persian Gulf and Oman Sea coasts to identify deposits of minerals and metals particularly magnesium.
Mr Borna recalled that mineral exploration in Orumieh Lake has been suspended due to biological concerns. He earlier expressed Iran’s readiness to cooperate with Afghanistan in exploration its rich mineral mines which have largely remained untapped. He said the neighboring country possesses huge reserves of 200 ppm gold adding the reserves of Afghanistan could be studied further given the capabilities of Iranian experts in gold explorations.
BSI receives EUR 88 million order for 3 vessels
Bulyard Shipbuilding Industry the former Varna shipyard announced that it has received a EUR 88.2 million order from Bulgarian national maritime carrier NMB for the delivery of three bulk cargo vessels. The first of the vessels a 21,200 tonnes with a price tag of EUR 23 million, should be handed over by the end of 2009 and the other two 55,500 DWT vessels each worth EUR 32.6 million should be delivered by September 2011 and January 2012.
Bulyard Shipbuilding said that it will deliver NMB in early 2008 a 42,000 bulk cargo vessel, the last in a three ship order placed by NMB in 2005. Its sister vessel was handed over to the new owner in June 2007. The third, a 21,000 DWT vessel, will be delivered by October 2007. It added that the fleet is currently undergoing a privatization procedure. The prequalification for potential bidders closes on September 28th 2007. The indicative offers are due by October 18th 2007.
Bulyard Shipbuilding is a subsidiary of Bulyard AD a company 61.5% owned by Industrial Holding Bulgaria.
