Jharkhand recommends water allocation to 22 steel firms

IANS reported that Jharkhand has recommended water allocation to 22 steel companies to expedite the Greenfield steel projects in the state.

An official of the state industries department said that "The recommendation has been made according to needs of the steel companies. We have recommended those companies who are in the advanced stage of setting up Greenfield projects." He added that the list of 22 firms that should be allocated water on a priority basis was sent by the industries department to the water resources department on June 9th 2008.

As per report, industries have been categorized according to their location and their water requirements. Companies like Jindal Steel & Power Limited, Narsingha Ispat Limited, Bhushan Steel, Core Steel & Power Limited and Kalyani Steel Limited have been accorded priority for the Subernarekha basin, while Corporate Ispat & Alloys Limited and Essar Steel will get water from the Kharkai water basin.

Steel giant ArcelorMittal, Essel Mining & Industries and Pawanjay Steel & Power are among those to get water from the South Koel basin. And companies like Electrosteel Integrated Limited, Anindita Traders & Investment and BMW Industries will draw water from the Damodar basin.

As per recommendations, the maximum amount of water of 247.37 million cubic meters per annum will be drawn from Subernarekha basin followed by 155.58 million cubic meter per annum from South Koel Basin, 56.26 million cubic meters per annum from Kharkai basin and 49.72 million cubic meters per annum from Damodar Basin.

Mahindra Forgings commences 6,300 tonne press

Mahindra Forgings Limited announced that it has installed and commenced production of 6,300 tonne press. With this it has 8 forging presses, having an aggregate annualized production capacity of around 4000 tonnes per month.

Mahindra Forgings had earlier intimated on March 5th 2008 about the breakdown of one of the press having a production capacity of around 1,100 to 1200 tonnes per month. The said press is being overhauled and is expected to be put in operation by end of September 2008.

However, with the commencement of production of 6,300 tonne press and other 4000 tonne presses which compliment the 5000 tonne press, there is not likely to be any adverse impact on the production and performance of the company

KEC bags INR 160 crore rural electrification contract from NTPC

KEC International has bagged an order worth INR 160 crore from NTPC Electric Supply Co for rural electrification in Dumka district of Jharkhand on turnkey basis under the Rajiv Gandhi Gramin Vidyutikaran Yojana scheme.

KEC's scope of work involves electrification of 1,454 villages, providing approximately 200,000 below poverty line services connections and fourteen 33/11 kV new augmentation substations.

The work order is scheduled for completion by end 2009.

BD Castings to set up steel plant in Birbhum

FE reported that TMT bar manufacturer BD Castings Private Limited has come up with 2 new value added products for its Timcon brand TMT Bar Fe500 and Timcon structural steel. The first one is used in construction, while the latter has use in the engineering and fabrication industries.

Mr Ramesh Chand Goyal chairman of BD Castings said that the basic raw material of both the products is produced in the integrated steel manufacturing units of the company.

Regarding new ventures, he said that a new integrated steel plant with a capacity of more than 300,000 tonne per annum would come up in Birbhum.

RINL adopts Panar village in Gujarat as part of its CSR

Express News Service reported that Rashtriya Ispat Nigam Limited has adopted Panar village in Gujarat as part of its corporate social responsibility.

Mr PK Bishnoi chairman of Visakhapatnam Steel Plant has donated a TV set and 30 chairs to the community welfare centre at Panar, where he announced that Panar will be developed as a model steel village. He said that the village will have pucca roads and drains, high school, sanitation facilities, treated water, street lighting etc.

A medical camp was also organized by VSP at Champa Vijaya General Hospital at Rampura of Detroj Mandal. Of the 196 villagers who underwent preliminary medical screening in the areas of gynecology, eye and cancer detection, 25 persons were identified for surgeries.

The cost of the advanced medical treatment for the above will be borne by the VSP.

Anti POSCO activists may lose voting rights - Report

SNS reported that many anti POSCO activists including PPSS leader Mr Abhay Sahoo and a number of pro project people are in the same boat, but for a different reason. All of them are afraid of losing their voting rights owing to their long absence from their native villages.

Sources said that Mr Sahoo, originally from Jiraielo panchayat under Erasama area, had left his village to settle in Dhinkia to lead the anti project movement about 3 years ago, and so did most of his supporters. Some of the project supporters had to leave the notified place and reside elsewhere under different conditions.

As per the state election commissioner directive, the door to door survey for the preparation of electoral roll and correction of voters’ list was conducted between April 16th 2008 and May 30th 2008. As many as 739 booth level officers, 72 supervisors and eight senior officers were involved in duties during the pre-poll preparation of almost 700,000 voters. During the survey, the surveyors found that many people were absent from their native land for a long period of time and reported the same for necessary action. According to official sources, a person's name may be deleted from the local electoral roll on three grounds for shifting to other place, absence for a long period from his native place and death.

Indian Railway freight revenue in 2 months up by 22.2% YoY

Indian Railways have generated INR 8996.29 crore of revenue earnings from freight traffic during April to May 2008 period up by 22.2% YoY as compared to INR 7356.79 crore during April to May 2007 period. Indian Railways carried 137.73 million tonnes of freight traffic during April to May 2008 period up by 10.2% YoY as compared to 124.98 million tonnes carried during April to May 2007 period. The net tonne kilometers went up from 80993 million to 89335 million, showing an increase of 10.3% YoY.

Out of the total earnings during the month of May 2008, Indian Railways carried 69.95 million tonnes of freight traffic and earned INR 4599.63 crore revenue.

Details of freight traffic and revenue earnings in May 2008

Volume in million tonnes
Earnings in INR crore

DMRC plans multi level parking at metro stations

ET reported that, in an attempt to make Metro more passengers friendly, Delhi Metro Rail Corporation is now planning to construct multi level parking lots at its stations. The move comes after secretary of union ministry of urban development said that to promote public transport, Delhi Metro must provide adequate parking space for its commuters.

Mr Anuj Dayal chief spokesperson of DMRC said that "The plans for the first multi level parking lot on the airport express line are still being finalized, as this was not a part of the detailed project report of the line. After this, the tendering process will start. The airport line will be integrated with other modes of commute, including the Indian Railways, existing Delhi Metro network, buses and private cars."

Mr Dayal added that "The elevated lots will have parking capacity of about 350 cars and will be constructed by DMRC. The operation and maintenance will be contracted to a private body."

The parking lot building will have two underground levels, the lower basement will have the platforms, while the concourse, check in facilities and airline counters will be housed in the upper basement. The entry or exit for commuters using the Metro line along with a drop off point for those coming in private vehicles will be created at the ground level. The top seven floors, according to the plan, will be parking lots. It will come up across a 9,000 square meter area.

The other major metro station on the Airport Express line, at Shivaji Stadium, will also have space for about 70 vehicles. DMRC has not planned a parking facility of a mass scale as New Delhi Municipal Council is coming up with a multi level parking barely a few meters away from the Metro station.

JSW Steel sets up vocational training institute at Toranagal

BS reported that JSW Steel Limited, which is currently expanding its steel mill at Toranagal in Bellary district of Karnataka, has set up OP Jindal Centre for Vocational Training at Toranagal to offer job oriented courses to the children of land losers and villagers adjoining the steel mill. It has so far invested INR 13 crore to construct a building for the vocational training centre adjacent to its steel mill at Toranagal.

OPJCVT has entered into a tie up with Nettur Technical Training Foundation to offer three programs in electrical maintenance, mechanical maintenance and certificate program in computer applications.

The centre is presently offering one year certificate program in 3 disciplines to 50 students in the first batch, which has just started. After every 3 months, it intends to commence the fresh batch of 60 students. The course is open for the children of the land losers at Toranagal and at a later stage, it will be open for students from across India. The centre will offer 100% placement in the manufacturing units of Jindal group such as steel mills at Toranagal in Karnataka, Jharkhand and West Bengal, power plant at Jaisalmer and Ratnagiri, aluminum plant at Vizag.

Mr SS Gupta director of OPJCVT said that "Our main objective is to impart technical training to the children of the displaced families in our project, so that they can not only become employable in our factories, but also turn entrepreneurs. They will be given a proper technical training for one year and after the completion of the course as per NTTF program, they can take up any job of their choice."

Mr Gupta said that the training will be free for the children of the displaced families, while the students under general quota will be charged INR 36,000. They will be offered a scholarship of INR 18,000. In addition to this, OPJCVT will also offer 20% of the course fee as scholarship to students under scheduled caste and scheduled tribe category and disabled. Sports persons will be given 5% scholarship.

Foundation stone laid for 1,200 MW Teesta hydel power project

Projects Today reported that Mr Pawan Chamling chief minister of Sikkim has laid the foundation stone for Teesta Urja's 1,200 MW mega hydroelectric power project stage III in North Sikkim on 16th June 2008.

The project to be implemented in six units of 200 MW each will entail an investment of INR 5,000 crore. All formal clearances with the forest and environment authorities have been obtained and the required land is acquired by the developers for the project.

The completion of construction work on the project is expected by 2012.

Ashok Leyland may open Nissan JV to shareholders

Reuters reported that Ashok Leyland Limited is considering selling some of its stake in a JV with Nissan Motor Company to existing shareholders. Leyland owns 51% of the JV with Nissan in India for making light trucks, transmission and components. The JV, which will start production in 2010-11, is being set up at a total cost of INR 24 billion with an equal mix of equity and debt.

Mr K Sridharan CFO of Ashok Leyland said that "We are looking at options to incentivise our own shareholders by giving them some sort of entitlement in the JV."

Mr Sridharan said that "We will offer some portion to shareholders and scale back the company's stake to that extent. The decision to offer a stake to the shareholders would be made in the next few months, and company listed subsequently."

He further added that it has raised about USD 200 million overseas debt and plans to raise another INR 10 billion in the next 18 months to fund the expansion. It sold 11,281 vehicles in April to May 2008 period down by 3.2% YoY, but has forecast high single digit growth in 2008-09 fiscal.

The Ashok Leyland Nissan JV will have an initial capacity of 100,000 vehicles in a range of up to 8 tonnes, a segment that is growing fast in India. Outside the JV, Ashok Leyland aims to spend INR 30 billion over the next 3 years to add 100,000 vehicles to its current capacity of 84,000 vehicles to take on market leader TATA Motors as well as the likes of Volvo and MAN.

DVC may set up a subsidiary to float IPO

DNA reported that Damodar Valley Corporation has been advised by its consultants KPMG to set up a subsidiary which can float an initial public offer.

Mr Asim K Barman chairman of DVC said that a follow up study by KPMG is being undertaken to decide whether the existing power plants can be kept under the old DVC formation and the new Greenfield projects should be transferred to the new arm, or whether DVC itself can generate funds the way it has been doing for its 11th Plan projects.

However, he said that the IPO is needed for the new projects to be set up under the 12th Plan since these will be super critical units and require a new type of technical efficiency. He added that DVC may induct a strategic international partner through an expression of interest, a proposal that is being weighed at present.

In the 12th Plan, DVC has identified five projects of 1,320 MW each which are slated to be executed either by DVC or its arm, which may not be a 100% subsidiary. In the 11th Plan, 6,000 MW will be added for which line of credit has already been tied up with REC, PFC and commercial banks. About INR 20,000 crore will be financed through debt and INR 8,000 crore from internal accruals.

Sical Logistics 2007-08 profit up by 11% YoY

Sical Logistics Limited has posted audited consolidated net profit of INR 502 million for the year ended March 31st 2008 up by 11% YoY as against INR 450.4 million for the year ended March 31st 2007. Profit before prior period and exceptional items was INR 426.3 million up by 36% YoY from INR 313.6 million.

Net sales for the year ended March 31st 2008 was INR 7.1 billion down by 323% YoY a against INR 10.5 billion due to the de merger of the non logistics business. Consolidated net sales of Sical’s core logistics business was IR 6.8 billion, up by 1.6% YoY from INR 6.7 billion.

On the 2007-08 fiscal results, Mr Ashwin Muthiah chairman of Sical said that "We are pleased to report steady business growth for FY 2008. We successfully executed our strategy of focusing on our core logistics business with the de merger of the non core business and the separation of the service and infrastructure business. This ensured dedicated management focuses and helped us leverage the true potential of each business."

He added that "Our infrastructure projects are progressing smoothly. Over the next 2 years, most of the special purpose vehicles will commence operations and we envision robust growth and enhanced profitability for the Group in the long term. We remain committed to our vision of making Sical a billion dollar company by 2012 and will continue with our efforts to enhance value for our stakeholders."

RITES to postpone IPO plan

BS reported that RITES Limited has decided to postpone its initial public offering of 10 million equity shares in the wake of high volatility in the domestic equity market.

A ministry official said that during the first week of June 2008, railway board and RITES officials held a meeting to review the progress of the IPO process, in which it was decided to postpone the public issue for the time being. In the review meeting, railway officials said that certain pre IPO transactions, which have to be finished before June 30th 2008 are unlikely to get completed before the stipulated time. Hence, they decided to postpone the issue. Apart from that, the prevailing weak market conditions also prompted RITES officials to rethink their IPO plan.

Mr VK Agarwal MD of RITES said that "The domestic equity market has been quite volatile during the last few months. Initially, we expected the situations to improve, but it did not happen. The market continues to be highly volatile and we decided to postpone the issue for the time being."

Another RITES official said that "All other required process for the IPO will continue to take place. When the equity market becomes stable, we will take a final call on the issue."

It may be noted that RITES proposes to issue 10 million fresh equity shares through its IPO in addition to another 4 million shares by way of divestment of the government's 10% stake in the company that will bring down the government's total equity stake in the company to 72%.

HEG 2007-08 profit up by 98% YoY

Graphite electrodes manufacturing firm HEG Limited has posted a net profit of INR 146 crore for the year ended March 31st 2008 up by 98% YoY as compared with last year. The net revenue stood at INR 236.7 crore and exports rose by 19% YoY to INR 184.1 crore from INR 154.8 crore.

Mr Ravi Jhunjhunwala CMD of HEG Limited said that "I am happy to announce another robust performance for the quarter, on the back of higher realizations in our graphite electrodes business. We have got full benefits from our power plants, leading to healthy growth performance in our power division. Our stabilized capacities have led to scaling up of our business, where we have the advantage of becoming a leading manufacturer in the graphite electrodes space. The strong demand scenario will continue in the graphite electrodes division, driven by higher volumes and improved product prices."

HEG is also planning to add 20,000 tonnes per annum of graphite electrodes to its present capacity of 60,000 tonnes per annum. The additional capacity would become operational by the last quarter of 2009. It is in the process of implementing its expansion plan of its captive power generation capacity by 33 MW at an investment of INR 90 crore. It is also focusing on high grade value added ultra high power products.

TATA Steel gifts day care centre for special kids

Ranchi Express reported that Parents Association of Mentality Handicapped Children, the only such association of the parents of challenged children in Jharkhand, is working towards setting up its own day care center in the city.

As per report, with the assistance of TATA Steel, the association would open up a care center where mentality challenged children would have a few hours of fun and togetherness with peer groups away from the close corners of home. The parents, in the meantime, would render their social responsibilities, which they cannot do in most situations, as there is no one to look after the need of the children left at home.

Mr P Babu Rao secretary of the association said that "The problem is more with the single parents who face problems in attending social functions or going for a brisk marketing or for that matter picking up some jobs or pursuing professional courses. Their mentally challenged children are in need of constant care and guidance. We are coming up with a day care center where parents can drop their wards and pursue their social obligations. Our professional caregivers will take care of the needs of the children."

McNally Bharat 2007-08 income up by 8% YoY

McNally Bharat Engineering Company Limited has posted income of INR 550.05 crore in 2007-08 fiscal up by 8% YoY as compared with INR 509.63 crore in 2006-07 fiscal. Profit after tax was recorded at INR 22.40 crore up by 28% YoY as against INR 17.5 crore.

McNally Bharat’s order book position as on March 31st 2008 amounted to INR 2,300 crore and its board of directors has recommended 10% dividend for 2007-08 fiscal.

The company source attributed the improved performance to factors such as higher margin resulting from the rise in high value business and lower interest payout. It added that the outlook is bright as the company hopes to post an income of INR 1,000 crore in 2008-09 fiscal and maintain the operating EBIDTA at the level of 7.5%, despite the challenges in the form of higher inflation and higher input costs.

McNally Bharat will continue its strong presence in steel modernization programs of SAIL, port expansion projects of National Maritime Development Program and capacity increase in non ferrous metal sector.

9 qualify for Rajpura power project bidding

Projects Today reported that nine companies have been declared qualified bidders for the 1,320 MW Rajpura coal based thermal power unit at Rajpura in Patiala district of Punjab.

The nine companies are
1. Reliance Power
2. TATA Power
3. Lanco Infratech
4. Essar Power
5. L&T Power Development
6. Gujarat Paguthan Energy Corporation
7. Sterlite Energy
8. Indiabulls Power Generation
9. Consortium of JSW Energy and Infrastructure Development Finance Co

These qualified bidders will now have to submit their proposals by November 7th 2008. The project will involve an investment of INR 5,000 to INR 6,000 crore and is proposed to be awarded to developers on BOO basis, through tariff-based international competitive bidding. Power Finance Corporation is the consultant for selection of developer of the project.

Nabha Power, a SPV formed by Punjab State Electricity Board will implement the project. The SPV will be responsible for ensuring linkages for coal, water and to undertake studies for transportation, hydrological, topographical, other studies and surveys necessary for preparation of project report.

The site of the proposed project has been cleared by the Central Electricity Authority and around 1,085 acres of land has been identified. The state government has also initiated the process of acquisition.

BOC India commences ASU at Adhunik plant at Rourkela

BOC India Limited recently announced that it has commissioned its 100 tonnes per day air separation unit at the Rourkela steel works of Adhunik Metaliks Limited, pursuant to a 10 years supply contract entered into with Adhunik Metaliks for supply of oxygen, nitrogen and argon to them under the said contract.

The 100 tonnes per day plant has commenced commercial production earlier this month and has been operating satisfactorily.

Mr Marandi calls for allotting Chiria mine to SAIL without delay

Mr Babulal Marandi former chief minister of Jharkhand has lambasted state government’s indecisiveness leading to the delay in handing over Chiria mines to Steel Authority of India Limited. Mr Marandi said that renewing the lease could have solved unemployment problems and brought prosperity to the state.

He added that "When SAIL is ready to establish four big steel plants in the state and employ youths being lured by Maoists, what was wrong in renewing the mines lease? It would have brought about peripheral development in the area and many more steel plants would have come up."

Mr Marandi, blaming the selfish motives of ministers and corrupt bureaucrats for the state’s regression, said that "As Jharkhand and the centre are ruled by the UPA, the plants could have come up faster."

Chiria was leased by IISCO, which has been merged with SAIL. But the government has not renewed the lease and the issue is in court.

Commercial viability of Futuregen to be known only in 2020

According to Mr James L Connaughton chairman of White House on Environment Quality, the commercial viability and technical reliability of the US sponsored Futuregen project, which is aimed at setting up zero emission coal fired power plants and of which three Indian public sector energy companies, namely Coal India Limited, NTPC and ONGC are partners, will be known only in 2020 as the project is currently undergoing restructuring.

Mr Connaughton pointed out that there would be more reserves and greater international participation. Instead of earlier one time funding to the tune of USD 2 billion, there would now be funding to the tune of USD 1 billion annually plus USD 9 billion worth of loan leverage. Also, instead of the earlier plant to set up one pilot plant by 2012, there would three to 4 commercial plants in addition to a dozen R&D plants across the world.

Although Futuregen project was being discussed for a long time, Mr Bhattacharyya chairman of CIL felt that not much progress had been made in this regard. He also wanted to know if carbon caption storage could be implemented in respect of existing plants.

Cochin Port to invite fresh bids for capital dredging

BL reported that Cochin Port Trust is likely to invite fresh tenders for capital dredging together with maintenance dredging at Vallarpadam International Container Transhipment Terminal at Kochi in Ernakulam district of Kerala.

The total dredging cost is estimated to be INR 485 crore and the dredging companies have to submit the tenders within one month. The dredging to be carried out is to the extent of approximately 24 million cubic meter and maintenance dredging of 16 million cubic meter in the next 2 years.

It may be noted that CPT was forced to cancel the tenders which were floated earlier in November 2007, as the price quoted by the international company was 70% higher than the estimated cost. Besides, the port did not get sufficient response for the tender as there was only one firm, which placed its bids for the work.

Port of Antwerp looking to invest in Indian ports

BL reported that Port of Antwerp is looking at investing in Indian ports and offer consulting services.

Mr Raj Khalid representative of Port of Antwerp India said that "We are looking for a tie up with players in the port sectors provided they come to us and if it meets certain criteria and if we can add value to it then we will take up the project. There have been enquiries and offer to partner with us. Once we find the right partners then we will even invest in those projects."

Mr Khalid said that "We are a landlord port and good at managing it. Indian ports follow the same pattern. So we can share our management skill s with the local players."

The Port of Antwerp in Belgium, which handles more than 180 million tonnes of freight annually, is a multi purpose port.

India establishes offshore safety regime in oil & gas sector

Union ministry of petroleum & natural gas has decided to notify Petroleum & Natural Gas (Safety in Offshore Operations) Rules 2008 for regulation of safety in offshore oil & gas exploration, exploitation, production, drilling and matters connected therewith, in exercise of powers conferred by Section 5, 6 & 7 of the Oilfields (Regulation and Development) Act 1948.

These rules will be applicable to all public sector undertakings, private and JV companies operating in territorial waters, contiguous zone, continental shelf and exclusive economic zone of India in offshore upstream oil & gas sector.

These rules would benefit the industry to enhance safety levels, bring uniformity in safety standards across all companies, minimize production loss or accidents and optimize use of precious oil & gas resources of India.

Oil Industry Safety Directorate, a premier technical arm of ministry of petroleum & natural gas, has been designated as competent authority to exercise the powers under the rules. It will develop HSE standards, conduct safety audits and carry out investigations to meet the requirements of these rules.

Since its inception in 1986, Oil Industry Safety Directorate has been doing pioneering work in improving safety in oil & gas sector both in onshore upstream operations and entire downstream sector namely refining, gas processing, storage and distribution, transportation through rail, road and cross country pipelines. It has developed 110 technical and HSE standards, conducted more than 2000 safety audits, trained more than 7000 personnel and carried out more than 200 accident investigations. With entrustment of responsibility of offshore safety, it will become the sole agency looking after the safety in all activities across the entire hydrocarbon chain.

Gas based combined cycle power plant commissioned at Valuthur

The first stage of the 92.2 MW Valuthur gas based combined cycle power project has commissioned at Valuthur in Tamil Nadu. The capacity of the first stage is 60 MW and the balance 32.2 MW capacity will be commissioned in a month’s time.

Mr Jairam Ramesh union minister of sate for commerce & power and Mr Arcot Veeraswamy power minister of Tamil Nadu were present on the occasion. The project is supplied with gas from a nearby gas field of ONGC and the turbines have been procured from the energy company, Ansaldo. The gas for the project is coming from ONGC wells of Ramnad zone.

Mr Ramesh said that uranium fuel for the 2 x 1000 Mw units at Koodankulam in Tirunelveli district have arrived from Russia and both Russian supplied reactors are likely to come into commercial operation by end of 2009. The plans of the Department of Atomic Energy are to generate 20,000 MW of power by the year 2020 of which 8000 MW are to come from Koodankulam type light water reactors.

He also complimented the TNEB for signing a MoU with BHEL to set up two 800 MW supercritical units at Udangudi in Tuticorin district with a total investment of close to INR 8500 crore. He revealed that the JV agreement between TNEB and BHEL forming the Udangudi Power Corporation Limited has been finalized and will be signed soon. The application for the coal linkage has also been made. The present schedule is to commence work by October 2008.

Punjab plans INR 1,225 crore for upgrading link roads

Projects Today reported that Punjab government is planning an ambitious INR 1,225 crore investment for expanding and upgrading link roads network in Punjab and modernizing its agricultural marketing infrastructure in the state.

While existing link roads measuring 7,200 kilometers will be repaired at a cost of INR 600 crore, the network will be expanded by adding 1,500 kilometers of new link roads, with an additional expenditure of INR 225 crore. The new link roads measuring 20 kilometers will be constructed in each of the 108 rural constituencies in the state as per prescribed norms of rural population.

The Punjab Agricultural Marketing Board has been asked to undertake the modernization of agriculture marketing infrastructure through out the state. The task will be completed within the next 2 years at a cost of INR 400 crore.

SAIL RSP project helps visually impaired kids

SNS reported that Steel Authority of India Limited’s Rourkela Steel Plant has launched ‘Project Baljyoti’ with the objective of providing light and color to the lives of the visually impaired children from the marginalized sections of villages around Rourkela.

This project comes under the corporate social responsibility initiatives of RSP. Under this project, the surgeries of 4 children from the Lathikata block were conducted by ophthalmologists from Ispat General Hospital recently. The children were treated for impairments like cataracts and squint. Since most of the children were below the age of ten, the treatment will not only remove the impairments at an early age but will also help them lead a healthy and normal life.

The project is being implemented in 3 stages. First the beneficiaries are identified and brought to camps held at IGH with the help of the district administration. In the second stage diagnostic tests like blood, pathology, ECG, X ray and visual tests are conducted at the camps. The children, who are identified for further treatment, are then operated at IGH. The impairments like congenital cataracts, squint and nystagmus are treated with the help of facilities available at IGH.

Postage stamp releases in honor of Mr Henning Holck Larsen

A postage stamp in honor of Mr Henning Holck Larsen co founder of Larsen & Toubro Limited has released by department of posts. The INR 5 denominated stamp was released by Mr A Raja union minister for communication & information technology.

The stamp release commemorates the birth centenary of Mr Holck Larsen and acknowledges the immense contribution made by him and L&T in building world class engineering competencies in India. Starting from a one room operation in Mumbai in 1938, L&T has over the last 7 decades grown into a USD 7 billion conglomerate, which has set bench marks in executing engineering and construction projects in India and overseas.

Under the stewardship of Mr Holck Larsen and his successors, L&T has always dedicated itself towards building a strong India. It has been a part of some of India’s critical programs of strategic importance like nuclear power and space research.

Mr Raja recalled the contribution made by Mr Holck Larsen in helping to build a company that has become a benchmark of engineering excellence. He said that "Mr Holck Larsen is an inspirational figure in India’s corporate history. Men like him have played a pivotal role in the making of modern India. We are privileged to recognize his contribution by releasing a postage stamp in his honor."

Mr Holck Larsen, a padma bhusan winner, joins the eminent list of industry leaders like Mr JRD Tata and Mr Dhirbhai Ambani, who have been similarly recognized by the department of posts by issuing a postage stamp in their honor.

Sterlite Asarco deal hinges on US court ruling

ET reported that Sterlite Industries may have signed a definitive agreement to acquire assets of the bankrupt copper miner Asarco for USD 2.6 billion on May 31st 2008, but the proposed transaction will be cancelled if the US bankruptcy court in Texas does not approve it.

This acquisition is different from standard M&A deals where the buyer purchases a company or an asset from the seller. Asarco had gone out of control of its parent Grupo Mexico when the company filed bankruptcy in 2005. The independent Asarco board had put the company on the block nearly a year ago and Sterlite emerged as the highest bidder through an auction, outbidding some others including Grupo Mexico, last month for its assets without its legacy liabilities. The deal is subject to the clearance of the bankruptcy court.

The proposed transaction snowballs into a competitive bidding with Grupo Mexico coming out with a USD 4.1 billion proposal last week for the entire Asarco, including its liabilities, and now even enhancing its offer. Grupo Mexico has now sweetened its last week’s offer by announcing that its wholly owned subsidiary American Mining Corporation will guarantee for additional payment of USD 2.7 billion if the creditors demand exceeds what is envisaged in its earlier plan. The previous plan envisages putting up USD 2.7 billion to pay off the claims, use USD 1 billion Asarco has on hand and then put in a further USD 440 million, if needed.

Asarco faces up to USD 5.3 billion in claims for asbestos and to clean up copper mining and smelting sites across in US. It has 3 mines in Arizona and produced 235,000 tonnes of refined copper in 2007. It has about 5 million tonnes of contained copper in proven reserves.

On the other hand, Asarco has been fighting a lawsuit against Grupo Mexico for allegedly transferring the company’s 54% stake in Southern Peru Copper Corporation to American Mining Corporation in 2003. In the lawsuit, Asarco has demanded 30% stake in the Peruvian mines, estimated at USD 9.6 billion. It also wants USD 1.7 billion the dividends the mines paid to Grupo Mexico since 2003. The trial of this case is over and the judgment is expected to be out in August 2008.

Sterlite is keen on sailing through its largest overseas acquisition while Grupo is desperate to bag Asarco to avoid a potential adverse ruling on the alleged stripping off asset lawsuit. The Sterlite bid received the support of the trade union.

The Asarco board also requested the bankruptcy court to approve a USD 52 million break up fee Sterlite wants which Grupo opposed. Both the parties, as it appears, have positives and negatives.

Exide buys 51% stake in Leadage Alloys

ET reported that Exide Industries has picked up a 51% stake in lead smelting company Leadage Alloys India Limited for INR 34 crore. The acquisition comes on the heels of Exide Industries’ buyout of another unlisted lead smelting company Tandon Metals s in October 2007 for INR 25 crore.

Since global lead prices have been on an upswing, the two acquisitions are expected to help Exide increase its use of recycled lead and lead alloys for making storage batteries. And this would, in turn, reduce the company’s dependence on imports of lead.

Mr TV Ramanathan MD of Exide Industries said that "The company owned lead smelting units will not only make Exide self sufficient in the long run, it will also help the company have better control over recycling of used batteries that they buy back from the market as part of regulatory framework for storage battery manufacture."

Mr PK Kataky director automotive of Exide Industries said that "This investment in our own smelters is not just a backward integration project for Exide. It is part of our commitment to the environment, whereby we will have better control over disposal of used batteries and plastics."

Meanwhile, Mr T Arun Kumar CEO of Leadage Alloys India said that the new partnership will result in significant synergy for both parties given the fact that the entire cost-efficient facilities of Leadage get leveraged by Exide to meet its diverse lead and lead alloy requirements.

Gujarat Foils announces INR 120 crore CAPEX plan

PTI reported that, after acquiring a controlling 60% stake in aluminum foils maker Gujarat Foils for INR 33 crore, Topworth Group of Companies said that promoters of the company will now invest INR 60 crore in 2 phases for capacity expansion.

Mr Abhay Lodha chairman of Topworth Group of Companies said that "Gujarat Foils, which enjoys 40% share of the domestic aluminum foils market, will invest INR 60 crore in the first phase to enhance its capacity to 7,000 tonnes per annum from 3,000 tonnes annually now. Work on the first phase of capacity expansion has already been started and will be completed by August 2009."

Mr Lodha said that Gujarat Foils would go for another round of capital infusion by December 2009 and this time too the investment will be to the tune of INR 60 crore which will mainly be used for backward integration. He added that Gujarat Foils would take an INR 43 crore loan from financial institutions to fund the investment and the remaining would come from internal accruals and contributions from promoters.

Topworth Group of Companies had acquired majority stake in Gujarat Foils from Pramod Jain and has already made an open offer to grab more stake in the company. As of now, Pramod Jain holds 20% stake in the company and the rest is with the public. Gujarat Foils has its manufacturing facility in Ahmedabad on 50 acres of land.

Bihar Tubes completes offering of GDR worth USD 10 million

Bihar Tubes Limited informed BSE that it has successfully completed the offering of global depository receipts aggregating USD 10,000,080 at the rate of USD 6.80 per global depository receipt to international investor.

The closing date for the issue is June 18th 2008. Consequently, Bihar Tubes has allotted 1,470,600 global depositary receipts representing 2,941,200 equity shares, par value of INR 10 each in favor of the subscribers.

These global depository receipts shall be admitted to listing on the official list of the Luxembourg Stock Exchange and to trading on the Euro MTF Market.

Elara Capital PLC London has been the sole lead manager global coordinator and book runner to the GDR issue of the company.

Mr Sushil Maroo appointed as deputy MD of Jindal Power

Jindal Steel & Power Limited has informed BSE that Mr Sushil Maroo has resigned from whole time directorship of Jindal Steel & Power Limited with effect from close of business hours of June 17th 2008 as he has been appointed as deputy MD of Jindal Power Limited with effect from June 18th 2008.

JSPL said that however, he will continue to be director of Jindal Steel & Power Limited and guide and direct the financial activities of JSPL and its associate companies.

Titagarh Wagons – Outcome of board meeting

Titagarh Wagons Limited has informed BSE that its board of directors has considered and approved the following at its meeting held on June 18th 2008

1. Agreement to invest in a JV company for the purpose of ensuring supply of critical components required for manufacture of railway wagons

2. Payment of an installment of dues of workmen of Cimmco Birla Limited in terms of a tripartite agreement among workmen, union of workmen, labor department, state government of Rajasthan and the company, in furtherance of revival in strategic partnership with JP Morgan Mauritius Holdings Limited, of CBL subject to approval of the Board of Industrial and Financial Reconstruction subsequent to submission of a draft scheme of revival.

Sujana Towers acquires 51% in Telesuprecon Limited

Sujana Towers Limited said that it has acquired 51% shareholding in Telesuprecon Limited, undertaking Telecom infrastructure contracts in various cast in central African countries. The investment of the company to acquire 51% shareholding of Telesuprecon was made at par.

Telesuprecon is in advanced stages of negotiations for securing Telecom infrastructure contracts of aggregate value about US 40 million to be executed over the next 12 to 21 months.

Gujarat based cement makers may be allowed to export

ET reported that Indian government seems to have gone on an over drive in its attempt to tame inflation. After partially lifting the ban on export of cement last month and allowing it to be exported from Gujarat ports, the government now wants to put in place safeguards to ensure that only companies based in the state can export cement.

The Directorate General of Foreign Trade has been asked to draft a notification banning cement produced outside Gujarat to be exported.

According to sources, as Gujarat accounts for about 90% of India’s cement exports, the move to disallow other states from exporting from Gujarat ports would not make a major impact.

An official said that "It is mostly cement manufactured in Gujarat which is being exported from the Gujarat ports. Cement exporters based in other states do not find it viable to come all the way to Gujarat to export. While allowing exports from earmarked ports might not amount to discrimination, making regulations which would only allow certain manufacturers to export while barring others could be challenged in the court."

It may be noted that a ban on cement exports was placed on April 11th 2008 as a move to check the rising price of cement in the domestic market. However, on May 27th 2008, the government decided to allow export of cement through Gujarat ports, including Mundra and Pipavav. The government explained that the relaxation was made as construction activity would slow down in the next few months because of the monsoon.

Cement companies based in Gujarat, including Gujarat Ambuja, Binani Industries, Ultratech, Sanghi Cement and Gujarat Siddhee, are understood to have benefited from the move. India exported 3.64 million tones of cement and 2.37 million tones of clinker in 2007-08.

Indian six core sector growth in April declines to 3.6%

IANS reported that, after a slowdown in industrial production, the growth in the output of 6 core sectors, including crude oil refining, coal and electricity, has also registered a steep fall in April 2008. The growth of these 6 industries namely crude oil, petroleum refining, coal, electricity, cement and finished steel, declined to 3.6% in April 2008 against 5.9% in April 2007.

The 6 core infrastructure industries had registered a 9.6% growth in March 2008. These core infrastructure industries also have a combined weight of 26.7% in the overall Index of Industrial Production.

The refinery products growth slowed down considerably to 4.3% in April from 15.1% in the corresponding month last year while the crude oil growth came down to 0.9% from 1.4%. Electricity generation growth also declined to 1.4% from a robust 8.7% in April 2007.

The other 3 sectors namely, coal, cement and steel, registered positive growth rates. Coal production saw a 10.3% increase from a mere 0.6%, cement increased by 6.9% from 5.8% and finished steel rose by 4% from 2.7%.

VRL Logistics draws up INR 1100 crore CAPEX plan

ET reported that Indian logistics major VRL Logistics is on course for a major expansion of its facilities in India with an estimated investment of INR 1,100 crore over the next 2 years. It is planning to opt for pre IPO placements too.

With a top line of INR 4,400 crore in 2007, VRL Logistics plans to invest INR 539 crore towards the development of transhipment hubs in Gurgaon, Solapur and Bijapur. As per information furnished to SEBI, it plans to invest another INR 530 crore towards the expansion of its truck and bus fleet. A booking and delivery office with an investment of INR 40 crore is also planned at Gadag.

Presently, VRL has a fleet of 2,446 vehicles for transporting goods. It transports industrial freight such as textiles, agricultural products and pharmaceutical products. It is also planning to start transportation of iron ore from Karnataka for which it needs 300 trucks with higher tonnage capacity with more than 15 tonne.

The investment for fleet expansion is high on account of the number of trucks being added and also due to specialized designing of cargo trucks undertaken by the company at Varur. As the company owns a large fleet, its maintenance has pushed up VRL’s working capital needs significantly from INR 105.28 crore in fiscal 2005 to INR 223.5 crore for 6 months ended September 30th 2007.

VRL’s goods transportation business is based on a ‘hub and spoke’ model. Transhipment hubs located in major cities act as hubs and various booking points as spokes. Once, consignments are booked at the spoke, they are unloaded at the nearest hub based on destination of the consignment. VRL currently owns and operates 43 transhipment hubs in India.

The Gurgaon hub is expected to be spread over 8 acres, Solapur over 7 acres and Bijapur hub across 2 acres. To economize on fuel expenses, VRL plans to create high speed diesel consumer pumps at the 3 sites.

Mild steel ingot futures weaken due to Govt measures

PTI reported that futures prices of mild steel ingots has declined on account of government measures to contain rising inflation and slowdown in construction works with arrival of monsoon.

June 2008 contract of mild steel ingots were down by 0.73% at INR 32,450 per quintal, July 2008 contract was lower by 1.07% at INR 33,190 per quintal and August 2008 contract slipped by 0.97% at INR 33,580 per quintal.

According to Mr Somnath Dey in charge of Religare Commodities Metals & Energy Research, steel prices weakened due to lean season in construction related works on arrival of monsoon and will hover around INR 32,000 to INR 33,000 per quintal level.

Mr Maniyar of Karvy also attributed fall in the iron ore export by 8% to 11% for the decline of futures prices of steel. He noted that international prices are firm but the domestic factors are weighing down on the steel futures price.

Nippon Steel to raise SBQ plate prices to record - Traders

Bloomberg reported that Nippon Steel Corp will raise contract prices of steel plate for domestic shipbuilders about 40% to a record.

According to steel traders, steel plate will increase by JPY 30,000 (USD 278) a tonne by September 30th 2008.

Nippon Steel said that it would raise immediate delivery prices for plate, used to make machinery and ships, by about 10% to JPY 110,000 a tonne as of this month. That gain followed a JPY 20,000 increase in April for the company's network of wholesalers.

Nippon Steel, which forecasts a 41% drop in annual profit, needs to raise prices to help offset a tripling of costs for coking coal and a surge of at least 65% in the price of iron ore.

Shipbuilders have accepted increases amid a boom in orders for vessels, driven partly by Chinese demand for iron ore from Australia and Brazil to make steel.

Flat products prices in EU continue to climb in June

UK based MEPS said that the relentless upward movement in EU prices continues and customers are obliged to accept the new higher third quarter values demanded by local producers. MEPS added that “Prices of imported strip into Europe are still increasing this month, although less material is entering the region. There is relatively little steel from China due to the pending anti dumping investigations. Output from domestic mills for July September deliveries appears to be restricted.”

MEPS said that “Demand from end users in Germany has slowed slightly because they are not sure they can pass on their increased costs to their customers in a weakening economic climate. Although service centers are making good profits at present, they are keeping stocks down. Third country imports are available, albeit not always at attractive prices. Buyers are not keen to place orders for deliveries so far ahead when they feel current prices are probably at their peak for this cycle.”

MEPS said that “In the French market, inventories are quite low and not expected to recover in the near term because of a lack of overseas availability and restricted supply from domestic sources. Prices continue to increase for third quarter deliveries. Sales are only average, although demand from the auto sector has improved.”

MEPS added that “Strip mill prices have registered further sizeable rises in Italy this month and the trend is expected to continue to the end of the summer as import volumes drop away. As hot rolled coil prices escalate, they are pushing the rest of the flat products with them. Stocks are depleted at present because customers are reluctant to risk losing money if the price trend goes into reverse.”

MEPS said that “Corus has stated that it will lift basis prices for quarterly contracts in mainland Europe by EUR 130 per tonne from July 1st 2008 but so far, no official announcements have been issued concerning the local market. Sales at home are lackluster. However, customers have fewer options on supply because of a lack of third country imports and much smaller quantities than usual on offer from other EU suppliers. There has been no speculative purchasing ahead of the period three price advances. Negotiations are underway and it is clear that prices will rise markedly. Our tabled figures are the results of early deals and values could go higher as more business is concluded.”

MEPS added that “Steel consumption is still quite good in Belgium, although the domestic appliance sector is starting to show signs of weakness. Market players are concerned that the second half of the year could prove to be more difficult as prices may have almost reached a level that the market can no longer support. Stocks at the service centers are on the low side of normal due to tight credit, delayed deliveries and mill restrictions on supply. Distributors are able to pass the higher mill prices to their customers. End users are keeping inventories to a minimum. Third country material is absent and the European mills are reported to be selling large tonnages overseas.

MEPS also said that “In Spain, general demand is stable. However, the auto sector is still reducing order volumes and construction activity is particularly weak as ongoing projects are completed and new ones postponed or cancelled. Availability from European mills is constrained, with smaller clients suffering the most.”

CSC to resume production of BF No 1

XFN ASIA reported that Taiwan’s China Steel Corp’s No 1 blast furnace is due to resume production today and the company's shipments will not be affected by the shutdown.

CSC in a filing with the Taiwan Stock Exchange said that production at the furnace has being suspended since June 7th 2008 after its cooling system was affected by a fire. The halt of operations at the furnace is estimated to cut company production by about 100,000 to 150,000 tonnes.

It said that but the company's inventory will meet demand and the incident will not affect shipments.

Steel inventories in US fall in May

According to the latest Metals Activity Report from US based Metals Service Center Institute, US and Canadian metals service centers, which rose from year ago levels in April, were lower again in May. Customers appear to be operating very close to the vest with no discernable momentum building in either direction.

Although inventories of both metals continued to be well below year-ago levels, US steel inventories rose slightly from stocks on hand at the end of April.

May shipments of steel products from US metals service centers fell 7.2%, to 4.36 million tons, from May 2007 levels. US steel shipments for the year to date of 22.06 million tons are 3.7% lower than shipments for the period last year. At the end of May, steel inventories totaled 12.54 million tons, 10.8% lower than a year ago and, at current shipping rates, equal to a 2.9 month supply.

May steel shipments from Canadian metals service centers fell 7.5% to 313,500 tons, bringing shipments for the first five months of the year to nearly 1.6 million tons, or 2.1% lower than during the same period of 2007. At the end of May, Canadian inventories totaled 1.08 million tons of steel, down 14.2% from a year ago and equal to a 3.4 month supply at current shipping rates.

The Metals Activity Report, based on data from metals service centers in the United States and Canada, is produced by the Metals Service Center Institute and a third party econometrics and strategy firm, McCoy, Scott & Co.

Founded in 1909, the Metals Service Center Institute has more than 420 members operating from about 1,200 locations in the US, Canada, Mexico and elsewhere in the world. Together, MSCI members constitute the largest single group of metals purchasers in North America, amounting each year to more than 65 million tons of steel, aluminum, and other metals, with about 300,000 manufacturers and fabricators as customers.

Argentinean steel output in May up by 12% YoY

The Argentine Industrial Steel Center said that Argentina's steel production rose by 12% YoY in May 2008 as companies increased capacity to meet demand.

The steel industry said that production of crude steel increased to 499,200 tonnes from 444,600 tonnes in May 2007 and output of hot rolled coil steel climbed by 9.2% YoY to 490,100 tonnes.

Ternium SA and ArcelorMittal are the biggest steelmakers in Argentina.

ArcelorMittal announces change of principal borrowing vehicle

ArcelorMittal announced that the principal borrowing vehicle of the Group will be ArcelorMittal, the ultimate holding company of the Group.

In June 2007, ArcelorMittal announced that ArcelorMittal Finance a Luxembourg governed corporate partnership limited by shares had become the principal borrowing vehicle of the ArcelorMittal Group.

On 27 May 2008, ArcelorMittal completed the issuance of a USD denominated issue of 5 year and 10 year bonds, consisting of USD 3,000,000,000 aggregate principal amount split equally between the 5 year and the 10 year issue. This bond issue is governed by the laws of the United States.

Further to this bond issuance, ArcelorMittal has determined that the most appropriate borrowing vehicle of the Group should be ArcelorMittal. As a result, future bonds are expected to be issued by ArcelorMittal, the ultimate holding company of the Group. Additionally, ArcelorMittal expects to transfer a substantial portion of the debt from ArcelorMittal Finance to ArcelorMittal. Bonds currently issued under the name of ArcelorMittal Finance are expected to remain outstanding until their final maturity date.

ISRI supports efforts to remove global trade barriers

Ms Robin Wiener president of Institute of Scrap Recycling Industries said that she is pleased to see that the American Scrap Coalition has joined the bandwagon in support of the free and fair global trade of scrap, but seriously questions the coalition’s underlying premise that steel scrap processing and consuming industries are facing a steel scrap export crisis.

Ms Wiener stated that “Rather than a crisis, both the steel industry and the scrap industry are enjoying extraordinarily strong export markets due to the quick pace of global infrastructure development. In fact, finished steel exports alone have increased 81.5 percent since 2001.”

She added that “Scrap and finished steel are globally traded commodities. Efforts to artificially restrict that trade can have negative repercussions that are felt around the world. One effect that economists have noted is the potential for control reversal, where the implementation of export controls actually results in the opposite impact of what was intended to be achieved. That is why we have long taken an active position in support of free and fair markets by advocating for the removal of export controls around the world. As late as last month, ISRI attended meetings where we raised the issue of the need for free and fair trade practices between countries and continents.”

Mr Bob Garino director of commodities of ISRI said that “The price of scrap metal is only one of many components that factor into the overall price of finished steel. Higher steel prices are generally being driven by two major factors: higher global demand, primarily from emerging markets like Brazil, Russia, India and China, along with the Middle East, and the dramatic increase in the cost of raw materials. Since 2003, iron ore has risen 337%, while coking coal has risen 491%. While scrap auto bundles have gone up significantly during this same period it has been less than these other major raw materials.”

Sumitomo Metals receives the Imperial Invention Prize

Sumitomo Metal Industries, Ltd on June 17th 2008 received the Imperial Invention Prize, the highest honor of the National Commendation for Invention, together with the National Commendation for Invention Prize, from the Japan Institute of Invention and Innovation for its super high strength low alloy steel oil country tubular goods.

It is the first time for Sumitomo Metals and the first in about 20 years for the steel industry to receive the Imperial Invention Prize. The invention contributes to the prevention of the greenhouse effects, by helping increase the stable supply of natural gas, a cleaner energy source that is a source of less carbon dioxide than primary energy sources it replaces.

US April steel shipment up by 6.3% YoY

The American Iron and Steel Institute reported that for the month of April 2008, US steel mills shipped 9.403 million net tons, a 6.3% YoY increase from the 8.849 million net tons shipped in April 2007 and a 2.7% increase from the 9.158 million net tons shipped in the previous month, March 2008.

A year to year comparison of year to date shipments shows the following changes within major market classifications:
1. Service centers and distributors up by 4.4%
2. Automotive down by 2.2%
3. Construction and contractors’ products down by 2.9%
4. Oil and gas up by 7.4%

AISI’s estimate is based on reports from companies representing about 75% of the US’s raw steel capability and includes revisions for previous months and year.

Algoma Steel commissions portable bag house in BF No 7

Algoma Steel Inc announced that they have successfully installed a second portable bag house on No 7 Blast Furnace. The bag house was commissioned on the stub stack on June 13th 2008 and is operating well.

Additional interim control measures for No 7 include a third portable bag house, which is scheduled for installation June 27th 2008. Meanwhile, construction on the permanent bag house for No 7 Blast Furnace is underway and on track for commissioning in December 2008, two years ahead of schedule.

A host of additional particulate emission control measures are currently underway. In an effort to reduce dust from the coal piles, Algoma has begun the application of surfactants on the coal piles and dust suppressants on the surrounding roadways. These efforts, combined with extensive berm construction and tree planting initiatives along the riverfront will serve to reduce coal pile fugitive dust emissions by nearly 50%. In parallel, the road dust reduction program has been ramped up, with the roadway sweeping and flushing schedule extended to seven days a week. As an additional dust reduction measure, preparations are in motion for the paving of a number of onsite roadways, shoulders and parking areas.

Mr Armando Plastino COO Algoma Steel said that “We continue to make great strides in reducing air emissions as we increase production here at Algoma. We are very encouraged by our progress and the milestones we continue to achieve.”

He added that “The use of portable baghouse technology on No 7 Blast Furnace has proven successful and we look forward to providing future updates on the commissioning of the third and fourth baghouses.”

In addition to Algoma’s ongoing commitment to reducing emissions while increasing production, Algoma has commenced an aesthetic revival of the Company’s grounds. As part of an overall greening initiative, landscaping and tree planting are in progress.

American H1 scrap price to South Korea up slightly

It is reported that America has quoted USD 740 to USD 745 per ton CNF for H1 scrap to South Korea. The price was USD 20 per ton higher than that of the previous order due to tight supply.

However, compared to the South Korean market, the import quote in Taiwan is obviously lower. Current quotation of H1 & H2 mixed is USD 660 to USD 665 per ton CNF to a Taiwan port.

Australia's Sims Group has settled contracts with Taiwan’s buyers for large shipments; therefore, American dealers were forced to cut their prices in order to make a deal.

(Sourced from YIEH.com)

Siemens to expand operations in North Rhine Westphalia

Siemens intends to invest a total of EUR 180 million to expand production capacities and drive new technologies in the German state of North Rhine Westphalia. These investments are expected to result in up to 850 new jobs at the company’s facilities at Friedrichsfeld in Bocholt and Wesel over the next four years.

In April 2008, Siemens already opened a new test center for large compressor trains in Duisburg, the company’s biggest single investment in Europe amounting to EUR 100 million. Two hundred additional jobs will gradually be created at the Duisburg location, boosting the total number of new jobs at Siemens in North Rhine Westphalia to more than 1,000 in the next few years. The investment and the associated creation of jobs are the result of growing global demand for products and solutions for the environmentally compatible provision of energy and processing of resources. In the growth fields of fossil fuel power generation, wind power, and oil and gas processing in particular, Siemens occupies leading market positions that the company intends to further expand in the coming years.

Mr Manfred Egelwisse CEO of the Mechanical Drives Business Unit at Siemens’ Industry Sector said that “Since integrating Flender’s gear technology into Siemens’ industry portfolio, we have been experiencing tremendous growth in new orders in the area of wind power as well as for gear systems for other industrial applications.”

He said that “Siemens is meeting this demand by making additional investments in Germany and abroad. “Due to the increased demand of the last twelve months alone, we are planning to invest a total of €180 million in technology and personnel at our locations in Bocholt, Friedrichsfeld and Wesel by 2012. During this phase, we intend to hire an additional 850 people at these facilities. “

According to Mr Egelwisse, the company is looking for precision mechanics, metalworkers and fitters, for instance, as well as production workers and engineers. There are also some 50 additional openings in Siemens’ Industry Sector in North Rhine Westphalia.

Mr Frank Stieler CEO of Siemens Oil and Gas Division at the Siemens' Sector Energy said that “Worldwide demand for affordable energy and new challenges in the area of climate protection are proving to be strong growth engines for Siemens in North Rhine Westphalia.”

The company’s global oil and gas business is managed at its Duisburg location. Over the past two and a half years, the workforce at the Duisburg facility has grown by 400 to about 2,500, marking a 20% increase. In addition, Siemens is investing EUR 40 million to expand its steam turbine and generator plant at Mülheim in Germany, increasing the number of employees there from some 3,400 to 3,900. There are currently about 280 job openings at the company’s Energy Sector in North Rhine-Westphalia, primarily positions for mechanical, process and electrical engineers in project engineering and processing. Siemens is also recruiting employees for power plant assembly and commissioning jobs. In addition, well qualified, skilled production workers such as fitters and turbine mechanics are needed.

Harsco declares regular quarterly cash dividend

The Board of Directors of Harsco Corporation declared a regular quarterly cash dividend of USD 0.195 per share or USD 0.78 per share on an annualized basis. The dividend is payable August 15th 2008 to stockholders of record as of July 15th 2008.

The dividend represents the 233rd consecutive quarterly dividend paid to Harsco stockholders at the same or increased rate and reflects the Company's previously announced two for one stock split which became effective in March 2007. The Company has paid dividends every year since 1939, including dividend increases in each of the past 14 years.

Taiwanese rebar exports drop in May

Taiwan exported 26,179 tonnes of steel rebar in May 2008 dropped by 39% MoM from April 2008. The total export from January to May 2008 period was 207,000 tonnes jumped by 122% YoY.

The exports of H beam were 54,860 tonnes in May up by 228% MoM. But the total export in the January to May 2008 was 195,000 tonnes, down by 21%.

Besides, Taiwan imported 3,150 tonnes of H beam in May, increased by 163% MoM.

(Sourced from YIEH.com)

ArcelorMittal share buyback program status report

ArcelorMittal, under the new share buy back program as announced on December 12th and on December 18th 2007, hereby announces that it has repurchased 1,250,000 shares from February 10th until June 13th 2008.

The shares were repurchased at an average price of EUR 63.00 and for a total amount of EUR 78,752,495.

Reliance Steel ratings unaffected by PNA acquisition - S&P

Standard & Poor's Ratings Services said its BBB- ratings and stable outlook on Reliance Steel & Aluminum Co are unchanged following the company's agreement to acquire PNA Group Holding Corp.

Reliance expects to finance the USD 1.1 billion transaction, including the replacement of PNA's existing debt, with borrowings under Reliance's existing credit facility and by raising about USD 750 million through the issuance of new debt and equity securities.
S&P said that its current rating and outlook on Reliance reflect the expectation that while the company's somewhat aggressive growth strategy will continue, it will be pursued in a manner that maintains investment grade credit metrics consistent with the rating.

Rotterdam to take delivery of 11 more box cranes this year

It is reported that the leading European Port of Rotterdam plans to put a further 11 quay container cranes into operation, to cope with the growth in box traffic in recent years, particularly in the trade with Asia which is set to surpass transpacific routes this year.

Last year, the number of box cranes in operation at Rotterdam port stood at 92, with the new cranes pushing the number to 103 this year. This legion of cranes include 30 specialized cranes for inland and coastal shipping that require less investment than standard cranes and speed up the loading and unloading of containers.

This development makes Rotterdam the first port outside of Asia with more than 100 quayside container cranes in operation.

Tokyo Steel hikes sheet steel by JPY 2,000 per tonne

Tokyo Steel Manufacturing announced that it increases the selling price of sheet steel products by JPY 2,000 per tonne for distributors for July order.

Tokyo Steel said that the sheet steel hike represents increase for 7 months in a row while it keeps the long products price for the first time in 6 months.

The firm reduces the order acceptance of plate mill products in and after July through the year to secure materials for construction of new plant in Aichi

RIVA Acciaio orders Goodfellow EFSOP® system

RIVA Acciaio SpA has ordered one Goodfellow EFSOP® process optimization system for their EAF furnace operations at RIVA Alpa in France. Increased optimization based on the following parameters: decreased electrical, charge carbon, oxygen and methane consumption and increased productivity is part of the scope of supply along with Tenova Goodfellow’s water detection for improved safety within the furnace environment.

The EFSOP® system is part of an extensive modernization of the meltshop automation and process control. New automation and process control of the 90 tonne EAF will be undertaken by Tenova, as well as: modernization of the process control for the chemical package for the EAF; new ferroalloy and additives automation package for the EAF-LF; meltshop auxiliaries automation systems modernization; a new meltshop supervisory system including; supply of a new integrated meltshop networking Ethernet and Profibus bases; complete meltshop data collection, reporting and transmission to the RIVA ERP system.

This sale comes as a result of excellent benefits achieved at RIVA Verona in Italy in which two EFSOP® systems were commissioned in December 2006. The flexibility and comprehensiveness of the EFSOP Holistic Optimization™ approach demonstrated a significant increase in the plant’s performance capabilities.

WCI Steel states legal challenge is without merit

WCI Steel in response to media inquiries concerning the legal challenge filed by Optima International of Miami and certain minority stockholders of WCI Steel Inc representing less than 18% of the shares outstanding.

WCI Steel issued that "The legal action initiated by Optima International and certain dissident stockholders is without merit. Holders of a majority of WCI Steel's shares approved, on May 16th 2008, an agreement of sale to OAO Severstal. We continue to believe that this transaction with Severstal provides the most value to WCI Steel stockholders, customers, suppliers and employees. We intend to vigorously defend against this baseless action and will continue to pursue an expeditious closing of the sale, which will significantly improve the long-term prospects for the Warren facility."

Formosa Plastics to break ground on Vietnam steel mill

The Economic Daily News citing Formosa Plastics group officials reported that Formosa Plastics group is due to hold a groundbreaking ceremony on July 6 for a Vietnam steel mill project.

As per report Formosa Plastics group is planning to invest USD 8 billion initially to build the steel mill, which will have annual capacity of 7.5 million tones and the construction is due to be completed in 2011,

The report added that project participants include Formosa Plastics Corp, Nan Ya Plastics Corp, Formosa Petrochemical Corp, Formosa Chemicals & Fibre Corp and Formosa Heavy Industries Corp.

ArcelorMittal to raise steel wire product prices in US

Platts reported that ArcelorMittal will raise the price of all steel wire products by USD 80 per short tons effective with shipments from July 14th 2008.

ArcelorMittal said that the price increase is required to keep pace with the continued escalation of raw material prices, namely carbon wire rod.

Steel wire rod transaction prices have moved up to about USD 985 per shor tons in the US following multiple price increases from mills over the past few weeks. The USD 985 per short tons figure is the current ex works mill base price for low carbon wire rod used in wire mesh, pre stressed concrete strand, fencing and other industrial quality products.

Wire rod buyers in the US have absorbed back to back price increases of USD 60 in both May and Jun, and spot prices have risen from about USD 750 per short tons at the beginning of the year.

US domestic producers have gained pricing strength from the sharp decline in wire rod imports over the past year. Chinese imports alone are down by 90% and other foreign suppliers have been discouraged by the threat of trade sanctions.

Steel prices will rise 40% in Europe in 2008 - Deutsche Bank

Germany's biggest bank Deutsche Bank AG said that steel in Europe in 2008 will be 20% more expensive that it previously predicted.

The bank forecast hot rolled steel coil at USD 930 a tonne in 2008. Mr Timo Pirskanen analyst of Deutsche Bank in a report said that it is 40% more than last year.

According to Metal Bulletin data, Western European hot rolled coil, an industry benchmark almost doubled this year to USD 1,052 a tonne.

MMFX Technologies secures USD 55 million institutional funding

Irvine based materials science company MMFX Technologies that uses nanotechnology to manufacture high strength; corrosion resistant steel has received a USD 55 million commitment in secured debt financing.

The release said that “MMFX has received USD 27 million of the financing and will receive the remaining USD 28 million upon the startup of its Welland at Ontario in Canada steel mill facility. The steel mill’s state of the art equipment is designed to manufacture both conventional and MMFX high tech steel.”

The release added that “By using the higher yield strength of MMFX steel over conventional Grade 60 steel, construction projects can be completed with 20% to 50% less steel and up to 60% lower labor costs, changing the way buildings, highways and bridges are designed and built.”
Axiom Capital Management Inc acted as the procuring agent for the transaction.

MMFX Technologies Corporation, headquartered at Irvine in California was formed on June 22nd 1998 to commercialize its proprietary, micro and nanotechnologies that enable the manipulation of the microstructures of materials to obtain optimum microstructural properties. The current focus for MMFX’s core technology is uncoated steel that has a microstructure fundamentally different from conventional steel.

Corus new ultra low CO2 steelmaking project

As a leading member of the ULCOS project, Corus announced that a web site has been published explaining the background to ULCOS and the four candidate technologies being considered for further development.

www.ulcos.org will initially provide background information about the project. In time it will add further information and future announcements as the project progresses.

Tokyo ferrous scrap price rises by JPY 2,000 per tonne

JMB reported that electric furnaces steel makers around Tokyo increased the ferrous scrap purchase price by JPY 2,000 per tonne in the week.

The price is around JPY 66,500 to JPY 69,500 per tonne for H2 grade. The price is lifted under tight supply when exporters and integrated steel makers try to secure the material.

Daewoo Shipbuilding wins USD 520 million European orders

Daewoo Shipbuilding and Marine Engineering Co said that it won shipbuilding orders worth a total of KRW 532.8 billion (USD 520 million) from Europe.

Daewoo in a filing to the Korea Exchange said that the orders were for two very large crude oil carriers VLCCs and two bulk carriers, without specifying the number or names of buyers.

Base metals futures up in early trade on MCX

It is reported that base metals prices moved up in the opening trade on the futures market as traders enlarged their positions, taking cues from global markets.

Traders said that overnight gains at London Metal Exchange, where all the base metals ended in positive zone as the US dollar weakened against the euro and the low level of LME monitored inventories, influenced the prices on the Multi Commodity Exchange.
Prices of tin for June 2008 contract shot up by nearly 3% at INR 896.50 on speculative buying on the futures market, triggered by strong LME, where it surged by 4% at USD 21,945 a tonne.

Nickel for most active June 2008 delivery contract rose by 0.58% at INR 1,041 per kilogram with a business volume of 1,041 lots, while July 2008 contract was up by 0.72% at INR 1,053 per kilogram. It clocked a business volume of 108 lots.

Copper June 2008 delivery contract gained 0.62% at INR 347.75 with a significant business volume of 3203 lots, while August 2008 contract rose by 0.64% at INR 346.65 with a volume of 380 lots. For month November 2008 contract rose by 0.20% at INR 345.80 per kilogram and recorded a moderate business volume of 5 lots.

Zinc June 2008 contract delivery moved up by 0.75% at INR 80.95, July 2008 contract delivery rose by 0.74% at INR 82.20 per kilogram while August 2008 contract gained by 0.24% at INR 83.15 per kilogram.

Indonesia needs new export-import ports - Mr Totok

Antara news reported that Indonesia needed new export-import ports to prevent goods congestions at Tanjung Priok port in 2012.

The report quoted Mr Totok Dirgantoro secretary general of the Indonesian Exporters Association as saying that "I suggest the construction of a new port in Bekasi and Karawang to handle our export import goods.”

He said that “PT Pelindo I, II and III, are capable to build new ports with an investment ranging from IDR 400 million to IDR 500 million. In this way, industries in Tasik, Bandung, Garut, Karawang, Cilegon and Cikarang could export their products through those new ports as 40% to 60% of our exports came from those regions.”

Mr Toto said ideas on the building of dry ports in industrial estates, would not solve problems of the flow of goods. He added that “Tanjung Priok is now already too crowded and the building of a dry port here would have to include roads which will increase investment, especially if it is necessary to build toll road leading straight to the port.”

Japanese steel mills a value for takeovers - Kobe

According to Mr Yasuo Inubushi president of Kobe Steel, Kobe Steel Ltd and its biggest Japanese rivals are attractive takeover targets because declines in market value this year have made them cheap.

Mr Inubushi told reporters that “Steel consolidation is still going on. Each of Japan's blast furnaces lost JPY 1 trillion (USD 9.2 billion) or more in market cap, so they may be good value.''

Mr Inubushi added that “There are no viable steps to prevent a takeover, except for increasing the company's market value.”

Kobe and Nippon Steel Corp implemented takeover defense plans in 2006, after Mittal Steel Co bought Arcelor SA to form the world's largest steelmaker with three times the annual production of its closest rival. The acquisition helped spur a rally in Japanese steel shares that fizzled after the companies signaled they would fend off mergers. Kobe, Nippon Steel and Sumitomo Metal Industries Ltd said that they would spend JPY 260 billion buying stakes in each other to bolster takeover defenses and strengthen a production alliance.

Technip wins deepwater pipeline contract in Gulf of Mexico

Technip announced that it has been awarded a lumpsum installation contract by Callon Petroleum Company for the Entrada oil field development in the Gulf of Mexico.

The contract covers the installation of
1. Two 6.5 mile steel flowlines that will tie back two subsea wells at a depth of 4,475 feet
2. PLETs and inline structures,
3. Steel catenary risers to be connected to the Magnolia offshore platform in 4,675 feet of water depth.

Technip said that “Detailed engineering and project management will be performed at Technip’s operating center at Houston in Texas and welding of the flowlines and risers will take place at Technip's spoolbase located at Mobile in Alabama.

Offshore installation is scheduled for the third quarter of 2008 using the Deep Blue, Technip's deepwater pipelay vessel.

Corus pursuing sale of two aluminum smelters

Reuters reported that Anglo Dutch steelmaker Corus is continuing negotiations over the sale of its primary aluminum smelters in Germany and the Netherlands.

Mr Jean Sebastian Jacques group director strategy at Corus on the sidelines of a steel conference told Reuters that “We have not changed our minds. We are still reviewing the strategic options in relation to those plants. As soon as we have something more specific, we'll disclose it to the market.” But he declined to give a time frame.

The smelters in Delfzijl in the Netherlands and Voerde in Germany have combined capacity to produce around 250,000 tonnes of primary aluminum annually. Including secondary production from scrap, they have total output of more than 300,000 tonnes of aluminum a year.

India's TATA Steel won a bidding battle in January 2007 to buy Corus. As TATA is focused on steel, industry analysts had expected the primary aluminum plants to be sold. Corus said that in December it signed a non binding letter of intent to sell the two smelters to US company American Industrial Acquisition Corp for an undisclosed sum.

Chinese growth created new dynamic in global steel industry

According to Mr Michel Wurth member of ArcelorMittal board, growth in China and other emerging economies has led to a new dynamic in the steel industry.

Mr Wurth while speaking at a conference in London said that “The steel market has become much more volatile, because of market behavior and consolidation. Growth in China and other emerging economies has led to a new dynamic.”

He added that “Consolidation is good as you have better and more rational behavior.”

Mr Wurth said that “An unprecedented rise in raw material costs has led to a new volatility in the steel market. Cost pressure is very high and consolidation can only mitigate this situation slightly.''

CMC Q3 profit declines on higher LIFO expense

Commercial Metals Co a manufacturer of steel and metal products, reported a decline in third quarter profit, hurt by a record Last in First Out or LIFO expense. The company reported net earnings of USD 59.5 million on net sales of USD 2.9 billion for the quarter ended May 31st 2008 as compared with net earnings of USD 99.4 million on net sales of USD 2.2 billion for the third quarter last year.

CMC said that this year's third quarter included after tax LIFO expense of a record USD 83 million as compared with expense of USD 20.1 million in last year's third quarter. Net earnings for the nine months ended May 31st 2008 were USD 168.4 million on net sales of USD 7.3 billion as compared with net earnings of USD 250.7 million on net sales of USD 6.0 billion.

Selling, general and administrative expenses in the third quarter included USD 18.2 million of pre tax costs associated with the investment in the global deployment of SAP software. For the nine months ended May 31st 2008, the amount was USD 43.2 million. Other costs of USD 8.7 million were capitalized during the quarter. We have expensed USD 78 million and capitalized USD 68 million for the project to date.

Mr Murray R McClean president & CEO of CMC said that "Global markets maintained strength. The quarter was marked by unprecedented upward volatility in ferrous scrap and steel finished goods pricing. Following the upward movement in scrap prices, rebar and merchant pricing increased USD 212 a short ton during the quarter. Though management had anticipated significant upward movement in pricing, the extreme increases were unforeseen and led to an enormous LIFO charge. The LIFO charges reflect the rapid pricing changes and affected all our Americas segments, but they mask the underlying strong markets. Our Americas Recycling segment rode the ferrous scrap price increases to record quarterly results. The Americas Mills segment had increases in tons melted, rolled and shipped, including some export sales. Our Americas Fabrication and Distribution operations were hit with the double barrel of LIFO charges and margin compression on the rapidly escalating steel prices; however, our steel import distribution results were encouraging. The International Mills segment remained a tale of two cities strong at Zawiercie in Poland and the expected turnaround cost at Sisak in Croatia. Our International Fabrication and Distribution segment was opportunistic in this volatile environment and showed record results."

Striking South Korea truckers trickle back to work

Reuters reported that hundreds of striking South Korean truckers whose protest has paralyzed ports and cost export firms billions of dollars, reached deals with employers and returned to work on Thursday, easing pressure on an embattled president.

On Wednesday, thousands of construction workers and hundreds of other truckers went back to work after the government offered them deals that would save them money on operating costs.

The South Korean transport ministry said that the truckers reached tentative agreements with employers including steelmakers POSCO and Hyundai Steel for higher pay.

The labour strikes have cost the country at least USD 6 billion in lost business as some companies stopped production lines after they ran out of storage space and ran low on parts and materials.

The transport ministry said the amount of cargo going through ports is picking up as truckers return to work but overall levels are much lower than normal because ports remained clogged.

Iran rebar prices surge last week

It is reported that Iran's current price of 12mm to 25mm rebar has reached USD 1,220 to USD 1,240 per tonne, showing an increase of USD 70 per tonne from last week.

In addition, Esfahan Steel is offered USD 1,165 per tonne and Azarbaijan's price is quoted at USD 1,158 per tonne. Although most of mills in Iran have withdrawn from offering and waiting for stable market, the price of rebar is keep rising.

In the past few weeks, Iran's price was stable, but the global price is much higher Iran's price.

(Sourced from Yieh.com)

Saudi contractors see end to shortage of steel & cement

Arab News reported that Saudi Arabia’s contracting sector hopes that the current shortage of iron, steel and cement would disappear shortly and their prices would be steadied as a result of the steps taken recently by the government.

The steps include stringent checks on the export of iron, steel and cement. Another significant step taken to contain the situation is Saudi Basic Industries Corp.’s decision to suspend export of iron and steel besides importing them in quantities sufficient to cover the local requirements.

The ministry of commerce has laid down several conditions on exporters to guarantee that they do not involve in any foul play. The exporters should give all the details about their export such as the source of the goods, destination and the contract with the buyers. The permits for the export of iron and cement would be issued only after ensuring that local requirement has been supplied.

Mr Abdullah Ammar chairman of National Contractors Committee said that the government has the authority to regulate the export of iron because the manufacturing country has the first right for its products.

Hadeed Emirates to double its portfolio

Gulf News reported that Hadeed Emirates is planning to double its portfolio this year from AED 500 million to AED 1 billion.

Mr Sameer Dabbas CEO of Hadeed Emirates said that "We are establishing a steel factory at the Mussafah industrial area which will start production in 2009, extending over 25,000 square meters. We have already received the land, carried out the necessary preparations and we are currently acquiring the necessary licenses which will take a month to accomplish."

He added that "We also have industrial facilities and ongoing projects in Abu Dhabi, Dubai and Ras Al Khaimah, including the cargo terminal at Jebel Ali's Dubai World and the largest press in the world at the Abu Dhabi Media City."

Mr Dabbas said that it is also the assigned contractor for Abu Dhabi Industrial Centre at Mussafah. He added that "In future, we will be capitalizing on the ambitious growth plans for the emirate and we are already negotiating and seeking opportunities within the new developments, including the Polymer Park."

Hadeed Emirates specializes in the manufacture and supply of metallic building materials, as well as the construction of industrial facilities including the recently established Ducab factories in Abu Dhabi, as well as Hafilat, the UAE couch manufacturer.

Emaar raises Burj Dubai height

Khaleej Times reported that Burj Dubai will be taller than previously envisaged, with height enhancement work already in progress. Construction of the 2 communication floors is ongoing and structural steel work has started. The final height of Burj Dubai will be revealed only on its completion in September 2009.

Alongside height enhancement, Burj Dubai is also upgrading its interior finishes. International designers from California had been revisiting the designs to make the residences more attractive and functionally superior. The redesign process, undertaken over the past three months, has been completed, with the emphasis on top notch quality standards.

Mr Mohamed Ali Alabbar chairman of Emaar Properties said that "Burj Dubai is an unparalleled accomplishment in the history of mankind. Breakthrough technology, cutting edge innovation and creativity have been the driving forces of this tower, which will set new benchmarks in architecture, construction and engineering feats. As the referral point for all future high-rise constructions, Burj Dubai is now pushing its own record breaking standards further, with the height and design enhancements."

He added that "We get one chance in a lifetime to deliver a world-class project such as the Burj Dubai. Our main objective is to ensure that the very best in engineering, architecture, interiors, finishes and infrastructure support are employed in the making of this iconic building, which is the pride of Dubai. In the process, we will ensure speedy execution without any compromise in quality. We believe that a completion date of September 2009 is possible and reasonable for a project of this global magnitude and significance."

Burj Dubai, at over 636 meters, is already the world's tallest building and structure. Currently at 160 storeys, the tower also has the largest number of floors in any building. Burj Dubai has surpassed the height of the 628.8 meters tall KVLY TV mast in North Dakota and taller than 508 meters tall Taipei 101 in Taiwan and 553.33 meters tall CN Tower in Toronto.

Drake & Scull wins EPC contract for cooling system within Hadeed

Drake & Scull International recently announced that Zamil Industrial has awarded it the engineering, procurement and construction contract for the district cooling system within Saudi Iron & Steel Company.

In November 2007, Zamil Industrial, supported by Energy Central Saudi Arabia, signed a 22 year energy performance contract with SABIC for the complete outsourcing of process and comfort cooling and building plant to supply up to 20,000 tons of refrigeration at Hadeed.

Dolphin Energy to manage ADNOC pipeline network

The Peninsula reported that Abu Dhabi National Oil Company and Dolphin Energy Limited have signed a long term agreement for Dolphin to lease and operate ADNOC's eastern gas distribution system in Abu Dhabi. This well established pipeline network will be managed by Dolphin Energy for 25 years.

The lease agreement was signed at ADNOC's headquarters by Mr Yousef Omair bin Yousef CEO of ADNOC and Mr Ahmed Ali Al Sayegh secretary general of Supreme Petroleum Council and also Dolphin Energy CEO.

Mr Al Sayegh said that "We are grateful to both ADNOC and GASCO for their support at every stage of Dolphin's involvement with the EGDS. This lease agreement now enables Dolphin to directly manage every link in its value chain, from gas production offshore Qatar through processing, transport via sub sea pipeline and overland distribution."

The EGDS is currently used to supply gas to ADNOC's customers in Abu Dhabi and Dubai and will be leased by Dolphin to deliver the company's processed gas from Qatar to customers across the UAE, and shortly to Oman. The lease agreement replaces a temporary access agreement and interim transportation agreements with ADNOC.

The EGDS lease agreement also specifies a direct swap arrangement where Dolphin Energy will deliver gas to ADNOC's customers on behalf of ADNOC and ADNOC will provide gas to Dolphin's customer on behalf of Dolphin.

Dolphin Energy's major strategic initiative, the Dolphin Project, involves the production and processing of natural gas from Qatar's North Field and transportation of the dry gas by sub sea export pipeline from Qatar to the UAE, which began in July 2007.

GCC countries pump USD 100 billion into Arab states

According to a report by Dammam based Federation of GCC Chambers of Commerce & Industry, UAE and other Gulf oil producers have pumped in excess of USD 100 billion in investment into other Arab states as they veer away from the industrial countries because of an economic slowdown.

The report said that strong oil prices have also sharply boosted the fiscal surplus of the six Gulf Cooperation Council states and are expected to push up their economies by more than 27% this year to a record USD 1 trillion.

The report noted that the continued economic boom means the six countries, which pump around 16 million barrels per day of crude oil, would remain under heavy inflationary pressure, adding that the problem is complicated by the peg between the currencies of most member states and the ailing US dollar.

The report said that "This will allow them to further bolster their financial reserves and boost investments. But the economic slowdown in most Western countries is expected to force GCC countries to keep diverting part of those investments to other regions. Some Middle Eastern countries have already benefited from these capital flows, mainly Egypt, Morocco, Tunisia, Algeria and Jordan."

According to the Institute of International Finance, the incremental capital flows into those countries reached nearly USD 60 billion during 2002-06. Independent estimates show such flows grew to around USD 85 billion by 2007 and exceeded USD 100 billion by early 2008.

According to the Federation, those investments accounted for nearly 11% of the GCC's total capital outflow of nearly USD 1trillion during the past 7 years. GCC economies are expected to race by around 27.9% in 2008. The surge will also allow the six nations to record their highest combined current account surplus of 31.2% of the GDP this year compared with nearly 28% in 2007.

Construction firms in Saudi hit hard by material price hikes

Mr Fadi Mujahed director of concrete producer Saudi Readymix said that Saudi construction companies are losing as much as 20% on project revenues because of the soaring cost of materials.

Mr Mujahed added that "Over the next 5 years, large and mega projects alone in Saudi Arabia will require an estimated 52 million tonnes of cement, according to our current estimates."

He added that strategic partnerships with building material suppliers are needed to avoid major disruption on construction projects across the kingdom.

Record oil revenues are fuelling a construction boom in Saudi Arabia where contractors are struggling to cope with orders to build new homes, refineries and factories. Saudi Readymix is one of the largest concrete producers in the Kingdom.

Dubai Metro to start test runs from September 2008

Khaleej Times reported that UAE based Roads & Transport Authority will begin testing Dubai Metro from September 2008, on tracks which will run for 11.4 kilometers starting from Jebel Ali underground metro terminal to Ibn Batuta Metro Station.

Mr Mattar Al Tayer executive chairman of the board and executive director of RTA announced the scheduled testing of Metro Dubai as he toured the project, which included a workshop that showcased the final touches inside a number of Dubai Metro stations and Jebel Ali Metro Terminal.

The test run will go through four stations from Jebel Ali terminal before it reaches Ibn Batuta Metro Station. The tests will continue until the Metro's inauguration in September 2009. During the tests, trains will undergo technical assessments under automated and manned modes of operation. They will be connected to direct 750 volt with train enabled to run 90 kilometers per hour on the trial track. The procedures will check sound, vibration and the degree of electro mechanical alignment.

Mr Al Tayer said that "This test will help us assert environment safety measures and help us discover problems and resolve them before the Metro begins commercial service for passengers."

He added that the initial stage of Dubai Metro trial will be conducted under the name passive test during which a passive train carriage will be put on the trial track. Once the first test is completed, the second stage will start under the name active test. This will be conducted with no passengers onboard the train.

SA carmakers eyeing to setup manufacturing units in UAE

UAE Business 24-7 reported that leading South African car firms are looking for partners in the UAE so they can expand their businesses to the Gulf market by setting up manufacturing facilities in the region.

Mr Norman Lamprecht executive manager of National Association of Automobile Manufacturers of South Africa said that "South African automobile companies and spare part producers are looking for investment opportunities in the UAE and GCC markets. As the information is sensitive I cannot disclose details of the companies engaged in the talks."

South African company Hannibal Safari Equipment Company, which specializes in making four wheel drive accessories, is serious about entering the UAE market.

Hannibal's Mr Jacques Willing said that the accessories were not at present available in the UAE but the company was planning to launch them here. He added that "These products for all the major 4x4 brands would have a good market in the UAE and GCC where the desert tents and accessories would be in great demand. Our business options include a local facility to make these products."

The South African car sector is attracting a number of global companies that are looking for a cheaper manufacturing base as part of their African expansion plans. The South African government wants to increase production to 1 million vehicles per year.

South Africa produces about 80% of the new vehicles sold in Africa. Eight major global automobile companies manufacture cars, both light and heavy vehicles in South Africa with a local content of 60%.

Everest Metal Industries Q1 2008 net sales up by 58% YoY

Everest Metal Industries has posted record sales of AED 10.7 million for the first quarter of 2008 up by 58% YoY and expects sales to grow by another 57% YoY to AED 12.5 million for the second quarter of 2008.

Mr Yadu Saharia VP of Everest Metal Industries said that "We are pleased to report a strong quarter, which we see as a tribute to the way we have repositioned our company over the past several years. Our record performance, despite the challenges in the global economy, reflects the strength of our products in the regional market, and the benefits of diversity in the many end markets we serve."

Mr Saharia said that "Early this year, we increased our production capacity by 50% to meet the increasing demand. While keeping highly focused on the needs of our customers in the UAE, we are planning to leverage our growth in the UAE to expand into the gulf region."

Established in 2003, EMI is the region's leading manufacturers and suppliers of cable management solutions. EMI's sales offices are located in Sharjah, Dubai and Abu Dhabi, while its regional distributor network is based in Oman and Qatar.

Doha to get more than 800 towers in 10 years - Report

The Peninsula reported that Qatar's construction sector is set to reach QAR 33 billion by 2012 and with over 800 new towers slated to go up in Doha over the next 10 years, the market has been identified as one of the busiest construction areas in the world.

As the government of Qatar continues to strengthen its sustainable design initiatives in the construction sector, Autodesk and ProMedia are poised to highlight the outstanding features of the new Autodesk Revit solutions and AutoCAD 2009 software to both government agencies and private developers.

Designed for Building Information Modeling, the Revit solutions are comprised of Revit Architecture, Revit Structure and Revit MEP, which enable testing and analysis of new and better materials, while considerably reducing waste production. Providing efficient conceptual design, drafting and detailing solutions, AutoCAD 2009 facilitates efficiency and productivity by improving the output of veteran users while allowing new users to become prolific more quickly.

Mr Manish Bhardwaj field marketing specialist at Autodesk Middle East said that "As we seek a stronger presence in the region, we have made a decision to add ProMedia into our pool of resellers. We have confidence in ProMedia's capability to capitalize on the booming market in Qatar. At present, we are gearing up for a massive penetration drive in this market, and we are looking forward to aiding the Qatar Government's initiatives to enforce the implementation of sustainable design solutions for current and future developments."

Pakistan sees 14% decline in FDI

Business Recorder reported that foreign direct investment during the current fiscal year declined by 14% mainly due to uncertainty on political front and continued demonstrations in Pakistan.

Analysts said that despite the fact that a political government has been set up in Pakistan, the confidence of foreign investors in Pakistan's economy has not revived and they are still reluctant to invest in Pakistan due to continued demonstrations, especially by lawyers, across the country and political battle. They added that although the investors want to invest in Pakistan, they believe that the change in the political set up would hurt their investment

State Bank of Pakistan data showed that net foreign investment including FDI and portfolio investment declined by 37.2% to USD 3.943 billion during eleven months of current fiscal year in slow portfolio inflows due to political uncertainty in Pakistan.

Net foreign investment during the July to May of last fiscal year 2006-07 was USD 6.28 billion. Out of net foreign investment, FDI declined by 14.1% or USD 639 million during July to May period of 2007-08. After current decline, overall FDI stood at USD 3.881 billion as against USD 4.520 billion in same period of last fiscal year.

Analysts said that besides FDI, portfolio investment also declined by 96.5% to USD 62.2 million against USD 1.760 billion of corresponding period of last fiscal year.

Qatargas reaches new safety milestone

The Peninsula reported that Qatargas has recorded a new safety milestone with a combined total of 20 million man hours worked without a lost time injury in its common sulfur and liquefied natural gas storage tank projects at Ras Laffan Industrial City.

For the common LNG storage project this represents some 14 plus months worked without a lost time injury. During this time there have been on average over 2,400 workers on site at any one time.

Similarly, the common sulfur project will achieve 10 million man hours worked without a lost time injury in the last week of June 2008. For the common sulfur project this represents over 15 months worked since the last lost time injury with an average of 1,900 workers on site.

Mr Jayme Meier manager of common LNG storage project said that "This remarkable achievement is the result of the dedication of many people who work every day to make sure everyone on our sites goes home safely. From the project staff to the site supervisors and safety officers it is teamwork that helps us to achieve such things. Our main focus now is making sure that these projects continue to focus on safety as we near completion of these projects."

DP World to acquire majority stake in Contarsa Sociedad

Dubai ports operator DP World has agreed to purchase a majority stake in Spanish firm Contarsa Sociedad de Estiba, which runs Tarragona Container Port Terminal near Barcelona. The purchase will give DP World its first operation in Spain.

DP World has been on a massive global expansion drive over the last couple of years, snapping up port operators and terminal operations from the UK to China. It posted 2007 after tax profit from continuing operations of USD 419.7 million up by 52% YoY on the previous year. Revenue grew up by 32% YoY in 2007 to USD 2.73 billion.