February, 10 2008
Mr Paswan lays foundation stone for SAIL BSP expansion
Mr Ram Vilas Paswan union steel minister laid the foundation stone of the INR11,262 crore expansion and modernization project of Steel Authority of India Limited’s Bhilai Steel Plant in Durg district of Chhattisgarh.
Mr Paswan said "We want to become number one steel producer in the world. This can be possible with the cooperation between Government and the workforce. Currently India is fifth in manufacturing steel. We want to reach the top position. There are some hurdles in the way to reaching the top, but Government is amending rules and removing bottlenecks to meet the goal.”
The project is aimed at expanding hot metal production capacity to 7.5 million tonnes a year from the current 4 million tonnes and also increasing crude steel production to 7 million tonnes annually from 3.9 million tonnes.
He also praised the workforce of Bhilai Steel Plant for never going on strike in its 50 year old history.
WB forms panel to assess upcoming steel projects
Expressing concerns over the long term viability of several steel projects announced in the state, West Bengal department of commerce and industries has set up a committee of experts from the industry to assess the proposals and other aspects involved in the setting up of a steel plant.
Mr Sabyasachi Sen principal secretary of commerce and industries department said that the state government is monitoring the situation closely since a series of steel projects had been announced in the state. He added that “We cannot afford the land, which is a scarce and precious commodity and earmarked for the steel projects, to be locked in case the projects do not take off.”
Mr Sen said that the committee will involve members who would offer advice on how much land, water, coal and other resources are required for the projects. He added that “We should not only look for immediate investment, but also think 10 years in advance.”
West Bengal has around 14 large and small steel projects in the pipeline and roughly INR 90,000 crore is being invested in them. The projects will add an additional capacity of 37.8 million tonnes, excluding the capacity of the public sector steel units.
SAIL and Steel Complex likely to sign TMT JV
It is reported that Steel Complex Limited is set to sign a MoU with Steel Authority of India Limited for floating a 50:50 JV for production of TMT steel bars.
As per reports, the proposal has already been agreed in principle and a couple of officials from SAIL have been working at the Steel Complex Limited facility in Kozhikode over the last six months to optimize the process parameters of the electric arc furnaces and the billet caster. The installed capacity has since been raised from 20,000 tonnes to 55,000 tonnes of molten metal a year.
The sources said that the MoU with SAIL will facilitate Steel Complex Limited to come out of the BIFR fold and the state was considering ways to settle the liabilities of the company before the joint venture is formed. A core committee comprising three executive directors of SAIL and three top officials of the state government has been constituted to work out the details of the JV. The establishment of the rolling mill with a capacity of 50,000 tonnes a year is the second phase and it is estimated to cost around INR 300 crore.
SAIL had recently extended a working capital assistance of INR 5 crore to Steel Complex Limited for import of scarp metal to meet the additional requirement and the former is buying back the billets at market prices. Kerala government has commissioned a study for asset valuation of Steel Complex Limited, based on which the funding pattern of the JV will be finalized.
PFC qualifies 11 companies for Tilaiya UMPP in Jharkhand
It is reported that Power Finance Corporation has qualified 11 companies for the 4,000 MW Tilaiya ultra mega power project in Jharkhand. PFC is likely to invite request for qualification by March 23rd 2008 and the project is to be handed over to the developer by June 23rd 2008.
Those qualified include
1) National Thermal Power Corporation
2) Torrent Power
3) Essar Power
4) TATA Power
5) Larson & Toubro
6) Sterlite Energy
7) AES India
8) GVK Group
9) Jindal Stainless Power Limited
10) Reliance Power
11) Lanco Infratech
The Tilaiya project will be the fourth UMPP after Sasan, Mundra and Krishnapatnam. While Sasan and Krishnapatnam are being developed by Reliance Power, the coast based Mundra project has TATA Power as the developer.
Indian Railways seek INR 35,000 crore to finance core projects
Exim News Service reported that union railway ministry is expected to seek a 2008-09 plan allocation of around INR 35,000 crore. An announcement to this effect is expected to be made in the Railway Budget due to be presented this month.
Indian Railways is expected to see a huge cut in the gross budgetary support. The major part of the funds would be targeted at infrastructure development including the construction of the dedicated rail freight corridor.
The Planning Commission feels that Indian Railways should rely on internal generation of funds and market borrowings from the Indian Railway Finance Corporation to finance a major portion of its plan.
Indian Railways had obtained a 32% increase in its 2007-08 plan outlay of INR 31,000 crore, a major part of which was through internal generation of funds and extra budgetary resources. Total budgetary support amounted to just INR 7,611 crore.
New Mangalore Port races past 2006-07 throughput figure
New Mangalore Port has handled 17,516 TEUs during the current year up to January 31st 2008, crossing 2005-06’s container traffic of 17,290 TEUs.
Mr P Tamilvanan chairman of NMPT has attributed the increase in cargo traffic to the hectic business development drive undertaken by the port, coupled with increased infrastructure facilities. He added that more cargo would be attracted from the hinterland in the coming months.
He also stated that the Port had made another remarkable achievement by handling 4.90 million tonnes of rail bound traffic as against 2.48 million tonnes handled during the corresponding period of 2006-07.
Burnpur Cement clarifies on news item
With reference to the news item appearing in a leading financial daily titled ‘Burnpur Cement firms up on diversification plans’, Burnpur Cement Limited has clarified that it has not issued or given any press release in respect of the aforesaid matter.
Further it has also clarified that, it does not have any such concrete plan in its hand right now.
Indian exports in 9 months value up by 21.76% YoY
The cumulative value of India’s exports for the April to December 2007 period was USD 111049.70 million up by 21.76% YoY as against USD 91202.56 million during the April to December 2006 period. Exports during December 2007 were valued at USD 12314.97 million up by 16.04% YoY as against USD 10612.37 million during December 2006.
Cumulative value of imports for the period April to December 2007 was USD 168871.01 million up by 25.97% YoY as against USD 134054.76 million during the April to December 2006 period. India’s imports during December 2007 were valued at USD 17680.64 million up by 8.06% YoY over the level of imports valued at USD 14976.53 million in December 2006.
Oil imports during December 2007 were valued at USD 5962.62 million up by 23.78% YoY as against USD 4817.29 million in December 2006. Oil imports during April to December 2007 period were valued at USD 49311.55 million up by 11.68% YoY as against USD 44156.20 million in April to December 2006 period.
Non oil imports during December 2007 were estimated at USD 11718.02 million up by 15.34% YoY as against USD 10159.24 million in December 2006. Non oil imports during April to December 2007 were USD 119559.46 million up by 32.99% YoY as against USD 89898.56 million in April to December 2006.
The trade deficit for April to December 2007 was estimated at USD 57821.31 million up by USD 42852.20 million during April to December 2006 period.
Annual coal mines safety week 2007 celebrated at West Bokaro
It is reported that the prize distribution ceremony of the 50th annual coal mines safety week 2007 Ranchi Koderma Region was held at the West Bokaro division of TATA Steel, presided over by Mr MM Sharma director general of mines safety government of India as chief guest.
West Bokaro division of TATA Steel won 15 prizes for its remarkable performance in the area of safety. Quarry AB received the overall first prize and also get first prize in haul road or traffic rules, first prize in lighting. Quarry South East was given the second prize in mine working and also second in dust suppuration and fire fighting. Quarry E was adjudged first in the publicity and propaganda records. Model from West Bokaro also got the third prize. Eight employees of West Bokaro won prizes for the trade test in the excavation and mining category.
Mr AK Ojha GM of West Bokaro division at TATA Steel, while addressing the gathering, said that "Today, mining is categorized as one of the most hazardous and challenging responsibilities, that requires a constant vigil and attention to ensure safety at work and meet the targets set in due course. It is heartening to see that the year 2007 has been recorded as the year with the lowest accident in the history of mining industries. This achievement has been possible only through the continuous efforts of technical expert of coal companies."
Mr AM Mishra VP raw material at TATA Steel said that "It is our moral responsibility to avoid accidents and observe safety rules laid down. Safety is of utmost importance and no compromise must be done in this area."
GVK Power to invest heavily in power sector in Punjab
BS reported that Hyderabad based GVK Power & Infrastructure Limited is keen to invest in the power sector in Punjab.
As per report, GVK Power, which is setting up a 660 MW thermal power project at Amritsar at a project cost of about INR 3,000 crore, has also plans to set up a 1,800 MW thermal power plant at Talwandi Sabo and another 1,200 MW coal based thermal power plant near Rajpura. These projects are likely to attract an investment of INR 12,000 to INR 14,000 crore. Besides, it has also plans to modernize Amritsar International Airport in Punjab.
Mr GV Krishna Reddy CMD of GVK Power said that “With these projects in hand, we will be producing about 2,400 MW in 5 years. It is establishing 2 hydro power plants of 330 MW and 370 MW in Uttarakhand and a coal based thermal power project, having a capacity 660 MW, at Goindwal Sahib in Punjab. Currently, it is operating 3 gas power plants in Andhra Pradesh with a combined capacity of 900 MW.”
It may be noted that Punjab government plans to add 3,500 MW to the existing 6,200 MW generation capacity. In order to meet the shortfall, the state government has drawn up a comprehensive program of generation capacity addition comprising
a) Lehra Mohabbat Phase II - 500 MW
b) Goindwal Sahib Thermal Power Project - 660 MW
c) Talwandi Sabo Thermal Power Project - 1,200 MW
d) Nabha Thermal Power Project - 1,200 MW
Mr Pradip Amat takes over as steel minister of Orissa
Mr Naveen Patnaik chief minister of Orissa has last week expanded his cabinet by inducing 3 new ministers. He also elevated 2 ministers of state to the cabinet rank.
The new ministers are
a) Mr Sanatan Bisi (BJD) - health & family welfare minister
b) Mr Pradip Amat (BJD) - steel & mines minister
c) Mr Pradipta Nayak (BJP) - labor & employment minister
d) Debi Prasad Mishra – ministry of tourism & excise
e) Mr Duryodhan Majhi - minister of planning & co ordination and science & technology
The new ministers were sworn in at a function at Raj Bhawan by Mr Muralidhar Chandrakanta Bhandare governor of Orissa.
Panel set up to study containerization in ports
It is reported that union ministry of shipping has constituted a high powered committee, headed by Mr PVK Mohan member of the national shipping board and also the CMD of the Hyderabad based Seeways Group, to study various aspects of containerization in ports, both major and non major.
The terms of reference of the committee include studying infrastructure facilities for containers in major ports, identifying bottlenecks, particularly the problem of congestion, exploring the areas of improvement in the entire logistics chain and making recommendations, both short term and long term, for meeting the challenges of the projected increase in container traffic in major ports.
The constitution of the present committee comes close on the heels of a similar committee constituted earlier, also under Mr Mohan, by the ministry exclusively for Kolkata port including Haldia. That committee submitted its report in November 2007 suggesting both short term and long term measures to boost container traffic through Kolkata port.
Mr Mohan said that “The report of the earlier committee on containerization for Kolkata port was well received not only by the shipping ministry but also the cross section of users, including trade, so much so that Mr Baalu felt the need for a similar committee for all other ports.”
Mr Mohan also drew attention to other areas such as proper connectivity and documentation and customs procedures which, deserved due attention.
Maharashtra to allocate INR 691 crore for two rail projects
It is reported that Maharashtra government is going to spend INR 691 crore for Wardha Yawatmal Nanded and Manmad Indore railway lines.
The total expenditure for 270 kilometer long Wardha Yavatmal Nanded railway line is INR 697 crore, of which the state is going to spend 40% or INR 279 crore, on the project.
Manmad Indore rail line is 350 kilometer long, out of which 192 kilometer route is through Maharashtra. The proposed route for this line is Manmad Malegaon Dhule Shirpur Nardana Shendwa Moh and Indore and the entire project cost is expected to be INR 1,501 crore.
The route which passes through the Maharashtra state is of INR 823 crore and the state government will spend 50% or INR 412 crore for Manmad Indore line.
M&M to increase output at Haridwar unit
BS reported that Mahindra & Mahindra Limited has planned to ramp up its three wheeler manufacturing capacity from 30,000 units to 100,000 units per annum at its location at Haridwar in Uttarakhand. Further, it has plans to roll out CNG based three wheelers for the Delhi market.
Mr Vivek Nayar VP marketing auto sector of M&M said that with annual sales of approximately 220,000 vehicles, the three wheeler and three seater passenger category was a big potential market and was expected to grow on account of infrastructure development and increasing transportation needs.
At present M&M has its manufacturing facility in Haridwar spread over 55 acres.
BEML banks on granite mining & SEZs for growth
BS reported that Bharat Earth Movers Limited is betting big on granite and marble mining, special economic zones and the boom in real estate to grow its mining and construction equipment business.
BEML is in the process of expanding its product offerings in the 7 tonnes to 50 tonnes excavator category aimed at the granite and marble mining sector. With this, BEML hopes to expand its product range within the low end excavator category and strengthen its market presence in India.
Mr BB Singh GM of BEML said that “Presently, our low end excavators range includes 7 tonne, 20 tonne, 22 tonne and 30 tonnes. We are presently developing new machines in the 40 tonne category, which has got specific applications in the granite mining area. Our in house R&D unit is in the process of developing this machine and we hope to bring it to the market within a year. With the setting up of special economic zones, new airports, irrigation canals and other infrastructure projects, we expect huge orders for our excavators in the next few years.”
Mr Singh said that, with the launch of new products, it aims to double its sales during 2008-09. During the present financial year, BEML expects a sales growth of 50% in its low end excavators to over INR 60 crore. Next year, it is aiming at sales of over INR 100 crore. In 2006-07, BEML sold 200 machines and is aiming at doubling the number in the next 2 years.
BEML manufactures a wide range of equipment for mining and construction sectors like excavators, bull dozers, dump trucks, backhoe loaders, motor graders, pipe layers, rope shovels and walking draglines. The market for low end excavators in India is around 6,000 units annually. BEML is fighting competition from companies like Telcon, JCB and L&T Komatsu in this segment. It has a distinct product range for both low end and high end applications in the mining and construction sector. While the low end excavators start from 7 tonnes and go up to 50 tonnes, the high end applications are between 100 tonne to 160 tonne, which are targeted mainly at coal and iron ore mining.
US DOC gives final ruling for SS imports from ThyssenKrupp Mexinox
US Department of Commerce, which published the preliminary results of the administrative review of the antidumping duty order on stainless steel sheet and strip in coils from Mexico on August 6th 2007, has announced final results in the matter.
US DOC said that “Based on our analysis of the comments received, we have made changes in the margin calculation; therefore, the final results differ from the preliminary results. We determine the following weighted average percentage margin exists for the period July 1st 2005 to June 30th 2006.”
Manufacturer / Exporter Weighted Average Margin
ThyssenKrupp Mexinox SA de CV 2.31%
This review covered sales of subject merchandise made by ThyssenKrupp Mexinox SA de CV for the period July 1st 2005 to June 30th 2006. The petitioner included Allegheny Ludlum Corporation, United Auto Workers Local 3303, Zanesville Armco Independent Organization Inc and the United Steelworkers of America.
For purposes of this administrative review, the products covered are certain stainless steel sheet and strip in coils. Stainless steel is an alloy steel containing, by weight, 1.2% or less of carbon and 10.5% or more of chromium, with or without other elements. The subject sheet and strip is a flat rolled product in coils that is greater than 9.5 mm in width and less than 4.75 mm in thickness and that is annealed or otherwise heat treated and pickled or otherwise descaled. The subject sheet and strip may also be further processed including cold rolled, polished, aluminized, coated etc provided that it maintains the specific dimensions of sheet and strip following such processing.
Excluded from the review of this order are the following
(1) Sheet and strip that is not annealed or otherwise heat treated and pickled or otherwise descaled
(2) Sheet and strip that is cut to length
(3) Plate ie flat rolled stainless steel products of a thickness of 4.75 mm or more
(4) Flat wire including cold rolled sections with a prepared edge, rectangular in shape, of a width of not more than 9.5 mm
(5) Razor blade steel. Razor blade steel is a flat-rolled product of stainless steel, not further worked than cold rolled cold reduced in coils, of a width of not more than 23 mm and a thickness of 0.266 mm or less, containing, by weight, 12.5 to 14.5 percent chromium and certified at the time of entry to be used in the manufacture of razor blades
(6) Flapper valve steel is also excluded from the scope of the order.
(7) Also excluded is a product referred to as suspension foil, a specialty steel product used in the manufacture of suspension assemblies for computer disk drives.
(8) Certain stainless steel foil for automotive catalytic converters is also excluded from the scope of this order.
(9) Permanent magnet iron chromium cobalt alloy stainless strip is also excluded from the scope of this order.
(10) Certain electrical resistance alloy steel is also excluded from the scope of this order
(11) Certain martensitic precipitation hardenable stainless steel is also excluded from the scope of this order
(12) Finally, three specialty stainless steels typically used in certain industrial blades and surgical and medical instruments are also excluded from the scope of this order
Och-Ziff takes5.9% stake in Metal Management
CNN Money reported that Och-Ziff Capital Management Group LLC reported a 5.9% stake in scrap metal recycler Metal Management Inc, in a filing with the Securities and Exchange Commission.
The asset manager beneficially owns 1.5 million shares or a 5.9% stake, based on 26.1 million shares outstanding as of Dec. 31.
In September, the Chicago based Metal Management agreed to be acquired by Australia's Sims Group Ltd.
Tinplate Group meeting outlines key issues
ITRI reported that the Tinplate Group recently held a meeting attended by more than 30 international representatives from tinplate producers, can makers, electrolyte and lacquer suppliers. The aim was to discuss global legislative and technological issues likely to affect the tinplate industry in the future.
At the meeting, a “Tinplate Group Roadmap” was compiled which now forms a basis for a further consultation exercise. The Roadmap has identified 11 priority challenges, which have been categorized into 3 sections
1. Market
2. Sustainability
3. Technology
In the “Market” category, the challenges identified are: global integration and innovation, in the “Sustainability” category, market drivers, low energy technologies, clean technologies, tin recovery and tin supply and in the “Technology” knowledge, fast production, smart packaging and advanced tin coatings.
Dr Jeremy Pearce manager of technology networks at ITRI said that “This broad amalgam of experience and expertise provides a unique and authoritative group for technical advancement. Each of the companies brought their own area of expertise, so that the Tinplate Group represents a powerful body for dealing with some of the technical, environmental and legislative challenges facing the tinplate packaging industry.”
Mr Pearce added that “The meeting was successful beyond our expectations. It generated a belief that things could be done and created a vision for the future.”
The Tinplate Group, coordinated by ITRI Ltd, is a unique membership forum for all the world’s major tinplate producers, customers and their suppliers.
Atlas Iron acquires iron ore rights option from Talison
Atlas Iron Limited announced hat it has entered into an agreement to acquire the iron ore rights to 10 Pilbara tenements from Talison Minerals Pty Ltd.
Summary of the Agreement
1. AGO acquires 100% of the Fe rights in exchange for payment of AUD 4,000,000 to Talison in AGO shares upon execution of a formal agreement, which needs to be executed by June 30th 2008 or such later date agreed by both parties.
2. Talison retains rights to other minerals and is entitled to a 0.5% Revenue Based Royalty in the event that Atlas develops an iron ore resource in excess of 5 million tonne.
The tenements are between 75 and 160 kilometres from Port Hedland, less than 60 kilometres from the FMG and BHPB railways and less than 60 kilometres from the Great Northern Highway. Some of these tenements adjoin the company's Abydos project.
Mr David Flanagan MD of Atlas said that "This acquisition adds to Atlas' Pilbara interests and provides us with the opportunity to apply our iron ore exploration expertise on an additional 10 tenements in a world class iron ore province. These tenements are very prospective for iron ore and we look forward to doing a thorough examination of the iron ore potential on these tenements.
Anglo CEO says South Africa power crisis was not a disaster
According to Ms Cynthia Carroll CEO of Anglo American, the critical power shortage in South Africa that has reduced mining production in recent weeks is not a disaster nor is the situation isolated to the southern African country.
Ms Carroll during a mining conference in Cape Town said that "Whatever, the reasons for South Africa's power shortage, this is not time for finger pointing.”
She added the problems are illustrative of why mining companies must maintain strong relationships with governments and key stakeholders to work on reducing power consumption, find alternative power sources and work to alleviate the current shortage in the country.
Ms Carroll said that countries including China and Chile have seen power supply problems recently, too.
Ms Carroll said that her company is committed for achieving an overall power efficiency of 15%. It has more than 40% of its assets in Africa, including majority shareholdings in Kumba Iron Ore Ltd and Anglo Platinum Ltd. She added that the company has about USD 4.5 billion invested in Africa as part of its ongoing project pipeline.
In recent weeks South Africa has seen a dramatic rise in the number of rolling blackouts as state utility Eskom Holdings Ltd has struggled to meet demand for electricity, the result of delays in investment in new power plants exacerbated more recently by planned and unplanned maintenance at existing plants. The power shortage hit its worse late last month when it forced many of the country's largest gold, platinum and diamond mines to suspend operations for five days. The mines have since ramped up production, but have been hit by Eskom with a 10% reduction in available electricity.
Philippines sets up army unit to guard mines
It is reported that Ms Gloria Macapagal Arroyo president of Philippines announced the creation of a special army unit to protect mines, plantations and power transmission lines on the troubled southern island of Mindanao. The Philippine government wants to attract billions of dollars in foreign investment to its mineral sector and has offered to work with the mining firms to help improve security.
Ms Arroyo after inaugurating a road project on Mindanao said the new unit, to be called an investment defense force, would shield against attacks by communist New People’s Army rebels seeking to damage the country’s economy, particularly the power and mineral sectors.
She added that "We also have already identified additional investment assets in Mindanao that need more weapons and personnel as protective shields.”
Ms Arroyo and her National Security Adviser, Mr Norberto Gonzales, gave no further details on the new military unit.
Last month, General Hermogenes Esperon, the military chief offered to train, equip and supervise private security guards to defend mines and plantations across the archipelago.
The NPA, waging one of the world’s longest running communist insurgencies, is opposed to foreign and local corporations mining Philippine sites and often attacks their operations. Last month, the NPA attacked a mine majority owned by London listed Xstrata plc, setting fire to buildings in the south. Last year, the NPA attacked a gold mine in another area in Compostela setting fire to a bulldozer and a welding machine.
Indonesian tin exports volumes increasing
A trade ministry official told Reuters that the volume of refined tin checked for export from Indonesia in January 2008 was 9,914 tonnes. The figure is based on reports from two surveying companies which inspect tin prior to export as part of the new export licensing system introduced on February 23 last year.
Mr Hartojo Agus Tjahjono a director at the ministry of Indonesia told reporters that the January figure compares with 3,330 tonnes in December and 5,716 tonnes in January 2007. However it is not clear how the January 2007 was obtained, as this pre dates the beginning of the surveying and licensing system. Official Indonesian customs figures for January 2007 show exports of 3,127 tonnes.
It is likely that last month’s shipments are higher than a year ago, as at that time all the independent smelters on Bangka and Belitung were shut down.
There are currently 14 independent smelters licensed to export, although trade sources indicate that volumes shipped recently have been seasonally low due to bad monsoon weather.
US spot silicomanganese prices surge
Platts reported that US spot market silicomanganese prices surged after a large, long term consumer purchase for second quarter and second half 2008, which has taken around 46,000 short tonne of material out of the US market. The Platts assessment for US spot, free market silicomanganese with 65% manganese rose to 90 to 95 cents per short tons FOB from 83 to 85 cents per short tons a week earlier.
Sources close to the business said that one of the largest consumers of silicomanganese in the country bought a combined total of 15 barge loads at an average price of just under 80 cents per short tons equivalent for standard 65% manganese material, although some of the purchases included higher grade material with 72% manganese.
According to traders and producer sources, the large volume of business will commit a substantial amount of material that had been overhanging the market and holding US prices back. A producer said the comparative low, average price of the business was a function of it being such a large requirement. He added that "Business at 80 cents per short tons is not repeatable.”
A trader said that the silicomanganese had effectively created the floor for the spot market. The trader said that the tender attracted offers as high as 115 cents per short tons for the high grade material, as well as other offers above 100 cents per short tons and several in the high 90s. Meanwhile, a second trader said that he had booked one bargeload of the business at 88 cents per short tons but had lost another at the same price.
Last year, a similar sized tender in the middle of the year, resulted in a large spike in silicomanganese prices. With long term commitments for the balance of the year booked by the consumer at prices mostly in the low 70 cents per short tons mark, spot silicomanganese prices quickly spiked to over 100 cents per short tons as other consumers scrambled to secure units for second half 2007.
Last week, traders said that the tender was likely to set the tone for the spot market in the coming weeks. One trader said that the business would soak up all that excess material that people have just been sitting on.
US spot silicomanganese prices have been very steady in the low to mid 80s range, despite upward pressure coming from increased ore prices, higher prices out of China and the electricity disruptions in South Africa a major silicomanganese producer, which traders and consumers attributed to the large volume of material that had been hoarded by traders over the last few months, that has been overhanging the market.
Tenaris hosts Joint Industry Program
Tenaris recently hosted the kick off meeting of the Heavy Wall SEVEN Joint Industry Program in Italy.
Together with Agip KCO, ENI, EXXON Mobil, CVX, SAIPEM, Total, materials consulting company EWI Microalloying, the CSM research laboratory and the university Politécnico di Milano, Tenaris has formed a program to develop innovative line pipe materials for use in particularly harsh operating environments.
Mr Mariano Armengol pipeline product leader of Tenaris said that “This has been a significant opportunity to share experiences with our main customers, to join forces to develop common knowledge for creating innovative materials and the procedures to test them, for projects in places such as the Arctic region, the Caspian Sea and ultra deep waters, which, in some cases, could be characterized for being extremely high pressure/low & high temperature, sour service and therefore be strain base designed,”
Mr Alfonso Izquierdo metallurgy and materials department manager at Tenaris's R&D Center at Veracruz in Mexico said that “Taking part in the JIP allows us not only to understand the current technologies our customers use but also allows us to learn what they expect from the materials we supply and consider future product development initiatives.”
Since 2000 Tenaris has participated in more than 25 Joint Industry Program s, organized by the most qualified oil and gas institutions. Two of these Joint Industry Program s, sponsored by Tenaris and coordinated through the company's R&D Center in Veracruz, resulted in the development of weldable seamless X100.
Malaysian developers worried over surge in rebar prices
Manila’s Daily Express reported that The Sabah Housing Real Estate and Developers Association has expressed grave concern over the increasing prices of steel high tensile bars over a period of just 12 months.
The report quoted Mr Wong Kwok Wah president of Sabah Housing Real Estate and Developers Association as saying that since February 22nd 2007, the price of the material had been both adjusted and increased seven times. He added that the total increase was MYR 760 per tonne for Y10 grade steel and MYR 820 per tonne for R10 among others.
Mr Wong Kwok Wah said that "This development is most unhealthy for the industry urging the Government to take immediate and serious measures to stop this disturbing trend.”
Venture Minerals sees likely low cost iron ore at Mt Lindsay
It is reported that Venture Minerals has results from the second stage of metallurgical testing of the magnetite rich material from No 2 zone at Mount Lindsay project in Tasmania.
Standard Davis Tube recovery results confirm high quality concentrate.
A final product grade suitable as supplementary sinter feed will only require a grind of around 150 micron and this is coarse compared with other projects.
The coarse grind is also likely to be beneficial to a tin recovery circuit. The results provide for significant cost savings for the project to produce a saleable iron ore product.
Whyalla plant to start soon for zinc residue treatment
It is reported that a demonstration pig iron plant at Whyalla in South Australia is set for a rebirth this month after nearly five years of being idle. As per report the plant is being re commissioned to treat hundreds of thousands of tonnes of zinc residue from Tasmania.
Mr David Sherrington plant manager from Ausmelt said that an official commissioning is planned for later in the month. He added that "Very much all go. We have got most of the new work force on site and currently going through their training exercises.”
He added that “They will be integrally involved with the commissioning. We have a number of construction activities still taking place so it's very much a happening site."
1.5 million manufacturing jobs lost in US in past 7 years - AAM
A new analysis by the Alliance for American Manufacturing on the 24 states holding caucuses or primaries on February 5th 2008 found that
1. The 24 states have lost approximately 1,568,600 manufacturing jobs in the past 7 years
2. These 24 states have lost a total of 914,400 jobs across all sectors between 2001 and 2006 as a direct result of the US trade deficit with China
3. Manufacturing is the top contributor to the economies of 15 of these states.
Mr Scott Paul director of AAM said that “Jobs and the economy will be the top issues that drive voters to the polls on Super Tuesday. The Super Tuesday states have lost more than 1.5 million manufacturing jobs good paying jobs that can’t really be replaced by lower paying service sector jobs. The presidential candidates would be wise to directly address these issues and let the voters know what they will do to strengthen American manufacturing, challenge China’s unfair trade practices, and reform our broken trade policy.”
The Alliance for American Manufacturing is a unique non partisan, non profit partnership forged to strengthen manufacturing in the US. It brings together a select group of America’s leading manufacturers and the United Steelworkers to promote creative policy solutions on priorities such as international trade, energy security, health care, retirement security, currency manipulation and other issues of mutual concern.
Asian Energy to build 1,000 MW power plant in Bangladesh
It is reported that GCM Resources Plc’s subsidiary Bangladesh based Asia Energy Corporation has proposed to build a 1,000 MW power plant using coal from Bangladesh's northwest field. It has submitted a plan to the Bangladesh government to develop a coal mine at the field at Phulbari by using open pit mining technology.
A Bangladeshi government official said that "We have received the proposal for the power plant through the board of investment, but before giving them any green signal, we need to get an approved national coal policy." He added that a committee appointed by the ministry of power, energy & mineral resources submitted a draft coal policy to the government last week for approval.
Mr Gary Lye CEO of Asia Energy Corporation said that "Bangladesh is facing a recognized shortage of energy and power and the situation are worsening and coal fired power stations are being seriously discussed by the government and people." He added that Bangladesh faces a power deficit of up to 2,000 MW against demand of 5,000 MW daily.
Meanwhile, the World Bank said that frequent power failures cut Bangladesh’s gross domestic product by around USD 1 billion annually and would need USD 10 billion invested over the next 10 years to overcome the shortages.
During the feasibility study in 2004-2005, Asia Energy drilled 108 holes and defined resource of 572 million tonnes of high quality coal at the Phulbari coal basin project. The current coal reserve in Bangladesh's 5 coal fields is around 2.55 billion tonnes.
STX Vina industry complex gets licence
Vietnam Agency reported that STX-Vina Heavy Industry Ltd Co, under South Korean STX Group, was granted an investment license to build the STX-Vina Heavy Industry Complex by the Van Phong Economic Zone’s management board.
This complex has a total capital of USD 500 million and will be built in Ninh Hai Commune, Khanh Hoa province. The project has a running time of 50 years and its first phase is expected to be completed in 2011.
US DOE releases Climate VISION Progress Report 2007
The US Department of Energy released the Climate VISION Progress Report 2007, which reports on the actions taken by energy intensive industries to improve greenhouse gas emissions intensity of their operations from 2002 to 2006.
The report indicates that the power and energy intensive industrial sectors improved their combined emissions intensity by 9.4% over this four year period, and in 2006, actual greenhouse gas emissions for these sectors fell a combined 1.4%.
Climate VISION Voluntary Innovative Sector Initiatives: Opportunities Now is a public private partnership initiative launched on February 12th 2003, to contribute to President Bush’s goal of reducing greenhouse gas intensity, measured as emissions per unit of gross domestic production by18% from 2002 to 2012.
Mr Stephen Eule director of DOE’s office of Climate Change Policy & Technology said “The Climate VISION partnership is an important component of this Administration’s comprehensive strategy to reduce greenhouse gas emissions by developing and deploying cutting edge technologies globally, rapidly increasing energy efficiency and increasing the use of nuclear, renewable and clean coal.”
He added that “By working with industrial sectors to demonstrate the business incentive of investing in energy efficiency, US industry is stepping up efforts to adopt cleaner technologies and practices that contribute to meeting the President’s goal of reducing greenhouse gas emission intensity 18% by 2012.”
Climate VISION is comprised of business associations and trade groups representing 13 energy intensive industrial sectors and the Business Roundtable, which collectively account for about 40% to 45% of US greenhouse gas emissions.
Each Climate VISION partner has made a commitment to improve the energy efficiency or greenhouse gas emissions intensity of its sector. These partners, which include some of the largest companies in America, represent a broad range of energy intensive industry sectors: oil and gas; electricity generation; coal and mineral production and mining; manufacturing in including automobiles, cement, iron and steel, magnesium, aluminum, chemicals & semiconductors and forestry products.
Greece to sell its ports
Haaretz.com reported that the Zim shipping firm may bid in the international tender for the privatization of the Salonica sea port.
Athens has decided to privatize the country's two major ports, Piraeus and Salonica and issued the first tender for Salonica port, which has been appraised at EUR 360 million. The tender covers running the port for 30 years.
The report added that the winner must pay EUR 25 million upon signing an agreement with the Greek government and the rest when the equipment is transferred to the port's new operator. It should be pointed out that the Greek government's privatization plans have triggered violent protests and strikes on the part of port workers.
Kandil Steel to expand capacity to 1 million tonnes by 2010
Arab Steel reported that Egyptian CR& HDG major Kandil Steel, after reaching the capacity of 600,000 tonnes of rolled steel subsequent to that acquisition of their main local competitor Galva Metal in 2007 is planning to expand its capacity production to reach 1 million tonnes per year by the year 2010.
The report cited a company spokesman as saying that “Among the company’s further plans there are also expansion of its cold rolling and pre painted capacities to grow from the current 200,000 and 40,000 tons respectively, but the full details on this project will be released in about two or three months after the final decision on the project has been made.”
AS per report, Kandil Steel has strategic alliance with its main suppliers including domestic steelmaker EZZ and the international players inside Europe and Russia for supply of HR Coils.
Kandil Steel’s current product range is as under
1. CR - 0.25mm to 3mm thick in 500mm to 1,250mm width
2. HDG- 0.25mm to 2mm thick in 600mm to 1,250mm width
3. PPGI - 0.3mm to 0.8mm thick in 600mm to 1,250mm width
Update on Guelb el Aouj Iron Ore Project in Mauritania
According to a recently released Interim Bankable Feasibility Study Results for the Guelb el Aouj Iron Ore Project in Mauritania in West Africa, rising costs are likely to push up the investments.
Positive interim Bankable Feasibility Study results, on the 7 million tonnes Guelb el Aouj Iron Ore DR Pellet Project in Mauritania, were presented to the project partners Sphere, SNIM & Qatar Steel by Canadian based project engineer SNC Lavalin International at a recent partners meeting in Paris.
These include
1. Capital cost estimated to be USD 1.9 billion, with a further US$250 million for contingency and cost escalation
2. Operating cost estimated to be USD 39.5 to USD 41.50 per tonne
3. EBITDA estimated at USD 400 million per annum
4. Project IRR estimated at 15%.
In addition to highlighting the economic viability of the project, it has also been confirmed that initial results of the two groundwater exploration drilling programs has demonstrated sufficient groundwater reserves of suitable quality for the life of the project, within an acceptable distance to the south-east of the project.
The final BFS report and financial model will be delivered by SNC Lavalin in March with no material change to the project’s capital cost estimate and overall economic viability expected between now and then. Once the final BFS report and the detail of the financial model have been accepted by the partners, the detailed documentation will be released to project debt providers.
The meeting of project partners in Paris also confirmed:
1. Settlement arrangements with Qatar Steel to pay US$375 million to SNIM and Sphere for 49.9% of the project operating company following the execution of a Shareholders Agreement, Share Sale and Purchase Agreement and the establishment of the joint venture company.
2. SNIM will give the project priority access to their established iron ore rail and port infrastructure in Mauritania. The Government of Mauritania has also reiterated its full support for the project’s development.
Mr. Alexander Burns MD of Sphere said that he is pleased with the interim BFS results and with the partners’ commitment to the project. He said “SNC Lavalin and the Sphere team have worked diligently over the past 12 months to develop the economic and technical viability of the project. We look forward to receiving the final BFS Report and working with our committed partners, Qatar Steel and SNIM, to put the debt financing package in place and make the project a reality.”
At the meeting in Paris the partners also discussed arrangements for the corporate structure and equity financing of the project. It was agreed by the partners that Sphere’s existing Mauritanian subsidiary, El Aouj SA, which currently holds Sphere’s 50% interest in the joint venture, will become the project operating company. SNIM will be issued a 50% interest in EASA in exchange for its 50% interest in the joint venture.
Pakistan ship breakers get 8 vessels
Daily Times reported that Pakistan’s ship breaking industry is witnessing a new spell of growth as it is pacing up its productions of steel scraps with the arrival of 8 new vessels since beginning of the year at Gaddani beach.
Local ship breakers said that as many as 8 large and medium sized ships have been anchored in Gaddani dockyard during the last five weeks and they could generate 25,000 to 27,000 light displacement tonnage scrap of steel and other metals as the other 2 ships being under worked for the last 2 months. The new docked ships include Japanese Shanti having 16,000 tonne weight and Japanese Pink 1 having 6,6145 tonne weight.
Mr Azam Malik president of Pakistan Ship Breakers’ Association said that the ship breakers have set the target to produce around 500,000 light displacement tonnage steel scraps by the end of the years as the local demand of ship billets and scrap metals have surged sharply since last year. He added that “Booming construction and engineering sectors have escalated demand in last five years, on the other hand, rising international prices of steel raw materials boosted industry’s need sharply.”
Mr Azam said overall demand of Pakistan has reached at 1 million tonne and the ship breaking industry is seeking to meet this demand. He informed that the waiver of import duties have encouraged ship breakers to enhance their production.
Pakistan’s ship breaking industry has been facing tough competition with their rival India and Bangladesh on the back of rising prices of ship’s import in the world, but due to high local demand it would capable to achieve the set target this year.
Thar coal exploration project gets green light
It is reported that Mr Pervez Musharraf President of Pakistan has given a go ahead signal to embark upon the initiation of work on exploiting energy potential of the 178 billion tonnes coal reserves of Thar under a new strategy. Sindh province has also been taken on board over the same.
Mr Musharraf was briefed on short and long-term strategies finalized by the authorities concerned to meet power deficit in the years to come. A rift over the tariff issue between NEPRA and Sindh on Thar Coal was also resolved, as under the new strategy, interested parties who want to install power houses in Thar, would come up with bids to decide the tariff rates when they are provided coal.
It may be noted that National Electric Power Regulatory Authority on January 11th 2008 had offered a 30 year indicative tariff of 7.8 cents per unit for a 1,000 MW coal based power project in Thar on the prime minister's instructions. But it was immediately rejected by the Sindh government.
Under the new scenario, the Thar Coal Mining Company, which was set up two years back and to be run by the private sector to develop the country's largest deposits of coal at Thar, has been reactivated with immediate effect. It will start working on mining of coal, which will be offered to the interested local and international parties, to generate powerhouses.
Mr Musharraf also agreed to gasification of coal, under which technology will also be used besides extracting coal for gasification of coal under ground and the gas, which will be produced by coal, to be provided to the powerhouse at Thar.
Industrial investments in UAE in 2007 touch USD 19.8 billion
Gulf News reported that the value of investments in the UAE's industrial sector has touched USD 19.8 billion in 2007 up by 3.14% YoY over 2006.
Abu Dhabi received the largest portion of these investments with USD 10.6 billion in 2007 while Dubai attracted USD 4.66 billion.
The industrial sector, particularly small and medium enterprises, contributed nearly 20% of the UAE's gross domestic product in 2007. The number of industrial firms totaled 3,852 in 2007 up from 3,567 in 2006. Dubai led the field with 1,548 firms in 2007, followed by Sharjah with 1,120. Abu Dhabi had a total of 312 industries.
Iran’s CCPP output to touch 3,500 MW by 2012
Mehr News Agency reported that, by the end of the fourth socio economic development plan 2012, Iran's combined cycle power plants of the ministry of energy are to generate 3,500 MW of electricity.
The ministry is also bound to convert 7,000 MW power generation capacity of gas turbine and thermal power plants to combined cycle power plants and construct 22 combined cycle power plants by 2012 to boost power generation capacity of Iran.
Construction of a 160 MW steam turbine for a combined cycle power plants costs some USD 172 million. This is while that if the same amount of energy was to generate using a gas turbine it would cost USD 21.5 million. Although a gas fueled power plant seems to cost some 8 times less then an equivalent combined cycle power plants, but the point is that the combined cycle power plants will be economically justified after only 8 years.
Nakilat awards cranes deal to Hyundai Group
Nakilat has announced that it has awarded a major contract to Hyundai Samho Heavy Industries Company and Hyundai Corporation for 10 jib cranes.
The contract includes the design, supply, construction, installation, test and commissioning of ten rail mounted, level luffing, portal type jib cranes of capacities ranging between 30 tonnes and 100 tonnes.
Mr Muhammad Ghannam MD of Nakilat said that "The awarding of the contract for jib cranes is significant because it marks the first in a series of contracts which will realize our vision for the new Nakilat shipyard to become a centre of excellence for the repair and maintenance of LNG carriers. This is a key step which will secure a strategically important link in the supply chain of bringing Qatar's natural gas from the wellhead to the world."
The cranes are required for operation alongside the quays and dry docks of Nakilat's new world-class shipyard which is being built in the Port of Ras Laffan. In March 2007 Nakilat and Keppel O&M joined forces to create the joint venture company, Nakilat Keppel Offshore & Marine to manage the design, construction and operations of the shipyard.
The 43 hectare Nakilat ship repair yard will service and maintain Nakilat's huge fleet of 54 LNG carriers as well as undertake work on all sizes and types of ships for other owners on a competitive basis.
The Nakilat shipyard is part of the massive expansion of the Port of Ras Laffan in the Arabian Gulf where the world's largest LNG developments are being undertaken.
Iran South Korea trade turns USD 8 billion
Fars News Agency quoted Mr Mohammad Reza Bakhtiari Iranian ambassador to South Korea as saying that the Iran South Korea trade hit USD 8 billion in 2007 and is predicted that bilateral trade will proceed with upward trend.
Mr Bakhtiari expressed hope that the relations between the 2 countries would be on the rise in the current year.
Coal stockpiles at key power plants in China recovering
Interfax China cited senior National Development and Reform Commission official as saying that the Chinese government aims to increase coal stockpiles at key power plants to levels that would allow them to generate power for 15 days
Mr Zhu Hongren vice director of the NDRC's Bureau of Economic Operations, said that coal stockpiles at the country's power plants have stabilized and are now increasing, but stockpiles are still lower than they were last October, and that some regions facing transportation problems will require more time before coal stockpiles can reach normal levels.
Mr Zhu said that power plants should not be blamed for their coal shortages as such shortages have arisen for four reasons. Firstly he said China's rapid economic growth has led to strong demand for coal and power. Secondly, water inflows in China's central and southwestern regions at the end of last year was 60% lower than normal, and as a result such regions have seen hydropower output decline and their reliance on thermal power grow.
Thirdly, Mr Zhu said some coal-producing provinces have seen their coal output decrease, and finally, recent severe weather has greatly affected domestic coal transportation.
Several analysts have stated that artificially low electricity prices have not provided power plants with enough of an incentive to generate electricity. Some analysts have even speculated that power plants are using their low coal stockpiles as a bargaining chip to make the government raise electricity prices, saying they will not increase stockpiles until the government raises electricity prices.
According to statistics released by the State Electricity Regulatory Commission on February 2nd 2008, total coal stockpiles at power plants had reached a low of 22.6 million tonnes an amount that on average can support power generation for just eight days. Regions that are seeing below average coal stockpiles include the Beijing to Tianjin to Tanshan region, Shanghai, Jiangsu, Anhui, Hubei and Shaanxi.
In addition, 39,920 megawatts of thermal power generation capacity was suspended due to insufficient coal, natural gas or fuel oil supplies.
Chinese tin production halted
ITRI reported that With China’s southern provinces suffering the worst weather conditions in 30 years in January, many mines and smelters are reported to have shut down, particularly in Hunan and Jiangxi. The two provinces accounted for over 20% of China’s tin production last year.
In Hunan one source reports that all mines and smelters are currently closed. Hunan produced just over 26,000 tonnes of refined tin in 2007. In Jiangxi several small mines and smelters are also reported to be closed.
In the two largest tin producing provinces, Yunnan and Guangxi, there has been relatively little disruption, although interruptions to power supplies and transport problems have caused some concerns in Guangxi.
New railways to link Xinjiang with central Asia
Xinhua reported that Construction will hopefully start this year on two railways linking China's westernmost Xinjiang Uygur Autonomous Region with the central Asian nations of Kyrgyzstan, Uzbekistan and Kazakhstan.
The report said CNY 6.2 billion railway linking Korgas on the China to Kazakhstan border with China's inland railways expected to be completed within this year will extend westward to join the Sary-Ozek railway of Kazakhstan to become the second cross border rail link between the two countries.
The new link will ease the burden of Alataw Pass, the largest land port in Northwest China which handed 5 million tonnes of train laden exports last year up 60% from 2006. Meanwhile, preparatory work has begun on the China-Kyrgyzstan-Uzbekistan Railway, which starts from Kashi in Xinjiang and extends through Kyrgyzstan to Uzbekistan.
Upon its completion in 2010, experts say the railway will provide a faster link between western China and central Asia and improve the southern passageway of the new Euroasia continental bridge.
Currently the only rail linking Xinjiang with central Asia is a 460 kilometer line between Urumqi and Alataw Pass where it connects to Kazakhstan railways.
China posts 95% growth in wind power generation
Xinhua reported that China has made remarkable progress in wind power development in 2007 and the industry will expect further regulatory boost in the coming years.
China Electricity Council, an industry association, said that the wind power sector generated electricity of 5.6 billion kilowatt hours last year, a growth of 95.2% YoY.
Mr Zhang Guobao deputy head of the National Development and Reform Commission said that China’s top economic planning agency has taken a string of measures to support the exploration of wind power. He said “Included were conducting survey of wind resources, organizing biddings for franchise of large wind power projects, and promoting localization of domestically produced wind power equipment. All these policies have paid off.”
Mr Zhuang added that “In future years, the government may deregulate the approval of wind power projects.”
China had wind power facilities with a combined installed capacity of 6.05 million kw at the end of 2007, increasing from 2.67 million kw a year earlier. It has achieved the goal set for the 2010 three years ahead of schedule. Wind power projects that are being built involve a combined installed capacity of 4.2 million kw.
Now China ranks the fifth in the world in terms of wind power installed capacity, still far behind Germany, which is the top wind power producer with a total installed capacity of 20.62 million kw. China plans to increase its wind power equipment to a combined installed capacity of 10 million kw by 2015, and to 30 million kw by 2020.
Hyundai Heavy HI sets up JV with Grand China Logistics
Xinhua reported that South Korea's Hyundai Heavy Industries on February 4th 2008 came to an agreement with Grand China Logistics, a subsidiary of China's Hainan Airlines Group to establish a JV bulker owning and operating company in Hong Kong.
While details of the envisaged joint company are still unclear JV partner Grand China Logistics currently has plans to procure more than 200 bulkers. Top executives of HNA Group and HHI entered into a cooperative agreement on February 4th 2008. Both parties will cooperate with each other in the fields of logistics, finance and strategic investments in the future.
Grand China Logistics is a logistics subsidiary of the HNA Group. Its goal is to develop into a comprehensive logistics business, including land, sea and air and it hopes to have a fleet including 210 ships and 30 airplanes within the next five years. At the turn of 2008, it decided to acquire Tianjin Marine Shipping.
Beijing to build logistics park for new ‘Silk Road’ rail link
It is reported that China plans to build a gigantic logistics facility covering nearly 70 hectares for the newly launched Sino Germany Container Railway.
As per report the first phase of the facility includes a container freight station and a logistics park. Construction is expected to start this year.
Once the facility is completed, the volume of Germany bound boxes on this railway may well reach 20,000 to 26,000 TEUs per rake by 2010 while Beijing bound boxes could be about 10,000 TEUs per rake.
Shenzhen throughput in 2007 up by 14% YoY
It is reported that Container throughput in the Chinese port of Shenzhen in 2007 grew 14.2%YoY securing its place as the world's fourth busiest container port.
According to the Shenzhen Municipal Government, Shenzhen handled 21.1 million TEUs in 2007. The double digit growth puts Shenzhen within reach of the third position currently being held by Hong Kong, which actually handled fewer containers in 2007 than in 2006.
According to the Hong Kong Port Development Council, Hong Kong container traffic slowed by 1.5% in 2007 to 23.88 million TEUs. The decline in Hong Kong's throughput to the switch by shippers to ports in the southern Chinese ports of Guangzhou and Shenzhen.
Recent reports said that the Hong Kong Government has been urged to scrap plans for a new container terminal in view of the expansion of the neighboring port of Shenzhen.
Ms Christine Loh CEO of Civic Exchange and a former legislative council member said “Hong Kong needs to let go of areas where it has lost a competitive advantage. She said Shenzhen's container terminals will probably handle more tonnage than Kwai Chung in the near future. This should not worry us unduly as the process will be gradual and there will be no job losses in the foreseeable future, because tonnage remains high.”
Ms Loh called Hong Kong's cargo operations “a sunset industry” and pointed out that many Hong Kong terminal operators have invested heavily in the port of Shenzhen.
Isuzu to scrap bus joint venture in China
The Nikkei business daily reported that Japan’s Isuzu Motors Ltd will scrap a bus joint venture business with China’s state run Guangzhou Automobile Group as tough price competition in China is depressing sales.
Nikkei, citing sources close to the state owned company, said the Japanese car maker is in the final stages of negotiations to sell its 49% stake in Guangzhou Isuzu Bus to Guangzhou Automobile by the end of March.
The joint venture was formed in 2000 to produce mid sized and large buses in China. But Isuzu has been exposed to a severe price war in China, with local manufactures and South Korean rivals producing low-cost buses, Nikkei said.
Guangzhou Isuzu Bus has struggled to increase sales and its production has totaled only about 150 to 200 buses a year against an annual capacity of 1,000.
Isuzu is one of Japan’s four truck makers and known for its expertise in diesel engine technology.
Chinese refined zinc production in 2007 surges by 18% YoY
According to the figures from National Bureau of Statistics, China’s production of refined zinc increased by 18.1% YoY to 3.749 million tonnes in 2007
Chuan Dong Shipyard gets first major order in 2008
It is reported that recently, Chuan Dong Shipyard and CSC Nanjing Tanker Corporation singed a contract. Chuan Dong Shipyard and CSC Nanjing Tanker Corporation will together to build two 5,500 tonne stainless steel chemical vessels. It is the first large order for Chuan Dong Shipyard in 2008.
As per report the contract is the second cooperation for Chuan Dong Shipyard and CSC Nanjing Tanker Corporation after the successful construction of 12 vessels in 2004. Through long-term cooperation, Chuan Dong Shipyard and CSC Nanjing Tanker Corporation have already set up strategic cooperative partnership.
Vyksa produced 103,000 tonnes of pipes in January 2008
FIS reported that VMP produced 48,793 tonnes of large size pipes, its wheel rolling mill produced 73,110 railway wheels up by 19%YoY as compared to the same period of 2007.
Ukraine mining committee bans Kuibyshevska mining operations
Ukrainian News Agency reported that Ukraine Committee for Industrial Safety, Labor Protection and Mining Supervision has banned mining works at Kuibyshevska Coalmine that belongs to Donetskvuhillia state enterprise and Komsomolska Coalmine of Antratsyt state enterprise.
According to the report, the committee banned mining operations except for rescue efforts at Kuibyshevska due to the February 4th 2008 subsurface fire.
The field office of the committee in Luhansk region banned operations at Komsomolska after smoke sings were detected.
Three militarized mining rescue teams are inspecting non operating and new galleries in the mine while an ad hoc commission is investigating the causes of the accident.
ESTAR EPP pipe production in 2007 up by 12% YoY
It is reported that ESTAR Group’s Engels Pipe Plant produced 71,700 tonnes of products in 2007 up by 12% YoY, which is likely to result in profit margins of RUB 1.4 billion.
The release said that “The interests of pipe producing enterprises are affected by gradual increase of tariffs for gas and railway transportation. Federal Tariff Service has prepared proposals as to indexing the tariffs for railway cargo transportation by 13.5% in 2008 by 9% in 2009 and by 6.5% in 2010. The key problem for the industry is the growth of prices for raw materials, they grew by 13% in the first half of 2007; by the end of the year this rate reached about 30%.”
It added that “The prices for metals used for production of steel and nonferrous metal pipes in the last few years followed a rising trend. A significant contribution in this process is made by dollar devaluation and hedge funds that have entered the world commodity markets accompanied by a growing speculative component. As a result, the level of lowest prices for pipe products has been steadily raising moreover, the situation allowed imposing the costs on consumer industries.”
Mariupol Port January cargo handling dips by 70% YoY
It is reported that in January 2008 the Mariupol Commercial Sea Port handled 466,700 tonnes. It is 70% less than in January 2006.
As per report metal handling totaled 188,700 tonnes, coal and cokes 80,100 tonnes, loam 77,500 tonnes, brimstone 72,200 tonnes, chemical fertilizers 19,300 tonnes, grain 7000 tonnes, other kinds of cargo 21,900 tonnes.
Azovmash sales in 2007 up by 40% YoY
Ukrainian Journal Staff reported that Mariupol based Azovmash increased sales by 40% in 2007 to UAH4.3 billion and exported 70.4% of its products last year.
It produced 9,827 freight cars and flatcars, 2,600 gondola cars, 5,836 cisterns, 867 covered cars and 524 platform cars.
In 2006, the company increased sales by 7.2% to UAH 3 billion.
Moncada Costruzioni to build major wind farm in Albania
According to plans announced by the Italian Moncada construction company Albania is to host what is expected to become Europe's biggest onshore wind farm when it is completed.
Moncada said that the project, which has already been approved by the Albanian government will have a total generating capacity of 500 megawatts. It will also include the construction of a transmission line between the Italian city of Brindisi and the Albanian port of Vlora.
The wind farm is expected to be located on the Karaburun peninsula close to the city of Vlora, a former military installation off limits to the public during Albania’s communist regime. The 400kV power cable, stretching 145 kilometer across the Otranto channel under the Adriatic Sea at a depth of over 900 meters will allow for electricity to be transmitted in either direction between the two countries.
Moncada Costruzioni is Italy’s fifth largest producer of electricity through wind farms.
Eurocement to invest USD 8 billion by 2012
Kommersant reported that Eurocement Group which produces nearly 40% of all concrete in Russia will invest USD 8 billion by 2012 in upgrades and expansion, bringing 2008 production to 27 million tonnes.
Mr Filaret Galchev chairman of Eurocement Group said Eurocement Group will spend USD 5.5 billion to build nine new plants and USD 2.5 billion to upgrade existing plants in the next five years, allowing the company to increase production by 25 million tonnes per year.
Uzbek buy USD 27.4 million locomotives fro Russia
It is reported that Uzbekistan's state joint stock railways company Uzbekiston Temir Yollari is buying locomotives in Russia for a sum of USD 27.4 million.
Uzbekiston Temir Yollari said "In 2008, the railways company will buy 10 locomotives from the Kolomensk locomotive building plant. The republic has already received two TEP70BS locomotives, and will use them on high speed passenger routes."
