Indian Steelmakers Directory 2008

The fast developing Indian steel industries are continuing beyond what most believed was possible. As one of the world's fastest growing economies, India has become the most happening place among world steel market over last few years and thus is in the radar of not only Indian but most of global players associated with steel industry. But due to fragmented nature of industry, a comprehensive list of smaller steel makers is not readily available.

"Indian Steelmakers Directory 2008' is one the top sources of information available on steel making companies in India! 'Indian Steelmakers Directory' is one of the most comprehensive and accurate directory of Indian steel companies that have ever been published. This powerful directory is your connection to the entire Indian steel industries sector.

Published in February 2008, “Indian Steelmakers Directory 2008” has been comprehensively researched and prepared, to bring you a fully up to date guide to India's rapidly growing steel makers. This Directory will be extremely useful to businesses that deal specifically with companies in the iron and steel industry, ferro alloys, consumable suppliers, raw material sellers, equipment makers and others.

Whether you are a product manager, in charge of marketing, raw material seller, in equipment business or simply interested to remain in touch with the latest developments in the Indian steel industries, this directory will save you time and effort in finding the information you need.

This directory will enable you to profile steel makers in India, build new business prospects, generate new customers, discover who your competitors are and make vital contacts. You would save the time, money and effort of doing your own research. This directory has been especially compiled to assist with market research, strategic planning, as well as contacting prospective clients or suppliers. It is also an indispensable guide to India’s and steel industries.

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This directory covers name and details of 720 of Indian steelmakers in Alphabetical as well as location wise order. The details given in the directory are basic only and covers company name, address and phone number. Fax number, email and website URL are also given where ever available. The directory is available in as PDF file contacting 720 steel makers and has 396 pages.

You can order your copy to reports@steelguru.com, who will send you an invoice of USD 1250 for the report

Indian domestic steel markets see volcanic eruption

Despite the fact that Indian steel majors Steel Authority of India Limited, TATA Steel and few others, who decide the Indian domestic steel price line, are marinating their price line for 3 months as promised to the Indian government in the second week of May 2008, raw material cost prices, global levels and speculation of impending increase has put Indian domestic steel market on fire.

Domestic prices for input materials, long products as well as flat products have all witnessed big jumps in all the regions across India since June 16th 2008.

Price movement for Mumbai market during this fortnight is given below to outline that the increase is spread across all product categories

Input materials

Prices are in INR per tonne
Inclusive of ED and VAT

Long products

Prices are in INR per tonne
Inclusive of ED and VAT

Flat products

Prices are in INR per tonne
Inclusive of ED and VAT

Similar increases have been reported in other important markets like New Delhi, Chennai, Kolkata and Raipur.

Market sources attribute following reasons for such unprecedented rise

1. Input material costs
Indian steel makers are facing sever cost pressures due to surge in input material costs

A) Domestic price levels for HMS, which are still suppressed compared to international levels, which are above USD 720 per tonne level, are inching upwards to reach equilibrium.

B) Following the international settlements by CVRD and realizing freight premium by Rio Tinto and coupled with mining constraints due to heavy rains, domestic iron ore prices have surged this fortnight and further increase is expected in the coming week.

C) There has been a shortage of coal, again due to mining operations hit by heavy rain, resulting in power supply as well as coal shortage to small steel plants.

D) Global levels of coking coal and coke prices are very firm amid huge demand from steel makers globally

2. Global price levels
International prices are ruling at all time high and global steel giants are announcing further increases almost everyday. Just to give some examples

A) The SteelBenchmarker reported following World Export Price for benchmark hot band for June 23rd 2008 as under
i) USD 1,097 per tonne FOB the port of export
ii) Up by USD 21 per tonne versus USD 1,076 two weeks ago
iii) Up by USD 547 per tonne from the recent low of USD 550 on July 23rd 2007. It means that in last 11 months hot band prices have surged by USD 547 per tonne or 100%
iv) Up by USD 501 per tonne from the recent high of USD 596 on March 26th 2007

B) Rebar prices in UAE are ruling at AED 5750 per tonne levels, which is equivalent to 1565 per tonne considering current exchange rate.

C) Turkish billet makers are trying to achieve USD 1300 per tonne FOB levels

3. Speculation
As buyers and sellers are anticipating price hike announcements by Indian steel majors sometime in July, every player in the chain is in buying mode rather than selling, thus limiting supply, which is pushing up the prices.

(Sourced from www.steelprices-india.com)

OMC tender points to further increase in domestic iron ore spot prices

It is learnt that Bhuwneshwar based Orissa Mining Corporation’s latest quarterly tender on June 27th 2008 has received higher prices for sale of iron ore during July to September 2008 period as compared to April to June 2008 prices.

1. Rates are in INR per tonne
2. Rates are Ex OMC mines
3. VAT or CST is in addition
4. Royalty is INR 19 per tonne for Fe content of 62% to 64% and INR 27 per tonne for Fe content of 65%
5. These rates would be valid for all supplies during July to September 2008 period

The rise in higher price received is attributed to production constraints due to rainy season amid firm demand. As per market experts, this is likely to result in a general increase in iron prices in Orissa of INR 200 per tonne to INR 500 per tonne.

The movement of domestic spot iron ore prices in Burwil during this fortnight is as under

1. Rates are in INR per tonne
2. Rates are Ex mines but include loading into rakes
3. VAT or CST is in addition
4. Royalty is INR 19 per tonne for Fe content of 63 and INR 27 per tonne for Fe content of 65%

(Sourced from www.steelprices-india.com)

POSCO admits no progress in its steel project in Orissa

It is reported that Mr Soung Sik Cho CMD of POSCO India recently said that "The Greenfield projects are confronted by issues like insufficient infrastructure, land clearance and resettlement issues and steadfast raw material linkage. Most Greenfield projects in India, especially in Orissa, have failed to make substantial progress."

Explaining the necessity of a win win relationship, Mr Cho said that while companies should be committed to the welfare of the people and strive to create prosperity through value addition to the community and environment, people should realize the benefits of industrialization.

He said that "I reiterate the importance of community because without their consent and strong will no project of industrialization drive can bear fruit. Strong and proactive government involvement is required to realize India's steel vision."

POSCO India which had inked a MoU with the state government 3 years ago for setting up the unit could not acquire an inch of land for the purpose even as the government claimed to have allotted about 190 acre to the company.

40% of Indian iron ore deposit in reserve forest and sanctuaries - Report

PTI reported that stringent forest acts and acute scarcity of coking coal seemed to be the major hurdles towards the growth of the steel industry in India which is aiming to occupy the second place after China by 2020.

Though India is endowed with significant reserve of iron ore according to the data given by the Indian Bureau of Mines, only 7.2 billion tonnes of ore were economically mineable. India has a reserve of nearly 25.25 billion tonnes of iron ore. Nearly 40% of India's reserve fall in magnetite categories, located in reserve forest belts or wildlife sanctuaries.

Mr Dalip Singh joint secretary in the steel ministry said that "Unless the government comes out with some innovative ways and means to allow mining of iron ore in reserve forests and wildlife sanctuaries, many of the proposed capacities may not materialize."

Port workers threaten nationwide strike from July 16th 2008

BL reported that five federations of port and dock workers have decided to serve a notice for a nationwide strike at all major ports on July 16th 2008, as the government has not given formal approval to pending employee related issues.

According to a statement from the All India Port and Dock Workers Federation, an agreement had been reached on some of the issues between the Indian Ports Association representing port managements and recognized federations. The agreements include grant of 13.5% interim relief with effect from January 1st 2007, amendment to settlement on liberalizing the definition of pay and eligibility limit for productivity linked reward effective from 2007 as decided by the cabinet, filling existing vacancies in various categories of port and dock workers and merger of 50% dearness allowance with basic pay with effect from January 1st 2005.

The federations include All India Port and Dock Workers Federation, All India Port and Dock Workers Federation, Water Transport Federation of India, Port, Dock and Waterfront Workers’ of India and Indian National Port and Dock Workers’ Federation.

Steel industries list out challenges in Orissa

SNS reported that steel producers in Orissa have listed out problems faced in setting up projects while the state government said challenges are part of life.

ArcelorMittal's Mr Sanak Mishra and POSCO India's Mr Soung Sik Cho, besides many in the sector, expressed their concern over the manner in which the industrialization is being carried out in the state.

Mr Mishra said that "Land acquisition problem is the bottom line truth which affects industrialization in the state." He added that three major problems faced by the industries were listed like land acquisition, iron ore linkage and water sources.

Mr BK Singh VP of TATA Steel has suggested an action plan to overcome the issues faced by the industries while Mr BP Modi deputy MD of Visa steel was for working in tandem with the government.

But, Mr Pradeep Amat steel & mines minister of Orissa said that "Life is never without challenges and let me assure you that the Orissa government is committed to face all challenges boldly."

Jharkhand to announce R&R policy in July 2008 - Mr Koda

Mr Madhu Koda chief minister of Jharkhand said that the much awaited rehabilitation and resettlement would be announced in the first week of July 2008.

Mr Koda said that the UPA approved the draft policy with slight amendments to the original version, submitted by the convener of the draft committee and deputy chief minister Mr Stephen Marandi, who could not make it to the meeting due to his pre schedule engagement at Dumka.

The provisions of the proposed policy envisage one per cent profit sharing of the firms by the land donors. The land losers would also have the right to claim for both employment and compensation from the company, which acquire their land. Besides, the company required offering financial assistance to the displaced persons at INR 1,000 per month, depending upon the size of land they part which for setting up of the industry.

Indian Railways inks JV with Kerala for coach unit

A MoU was signed between the union ministry of railways and department of industries & commerce, government of Kerala to form a JV company for fabrication of bogie frames for passenger coaches and side end walls etc for the wagons for Indian Railways by utilizing the land and other assets of steel fabrication unit and Autokast.

The MoU was signed by Mr VK Pabby advisor mechanical engineering at ministry of railways and Mr Amitabh Kant principal secretary & special commissioner industries of government of Kerala.

Mr Lalu Prasad union railways minister said that this JV will benefit people of Kerala and Indian Railways in the future.

In view of the rapidly growing passenger services there is going to be a requirement of additional passenger coaches in future. At present, Indian Railways have a limited capacity to manufacture fabricated bogies for the above requirement of coaches.

Bombardier and Alstom in fray for Indian Railways unit

BS reported that global electric locomotive manufacturers Bombardier Transportation, Alstom and Siemens from Europe and Kawasaki, Toshiba, Mitsubishi and Mitsui have shown interest in participating in the Indian Railways' ambitious INR 2,000 crore project to set up an electric locomotive factory at Madhepura in Bihar.

The project will be implemented on a private public partnership basis. Indian Railways will pick up a maximum of 26% equity stake in a special purpose vehicle to be floated for the purpose. The remaining equity will come from the foreign partner.

The initial capital cost of the factory, as estimated by the Indian Railways, is INR 1,000 crore. But industry experts say that the actual cost could go up in the range of INR 2,000 to INR 2,500 crore factoring in to account the increase in the prices of critical components like steel, iron, cement, fuel among others.

Mr Rajeev Jyoti MD of Bombardier Transportation said that "We are very eager to associate with the project. Since the agreement will be for a long term basis, we will have to carefully evaluate the commercial, legal and technical aspects before participating in the bidding process."

Similarly, a top executive of Alstom Transportation also expressed interest in participating in the proposed project. The factory will be set up on a build, own and operate basis for the production and supply of a minimum of 660 locomotives over a period of 8 years and undertake maintenance thereof for a period of up to 20 years.

Indian Railways will be subscribing to its equity for up to a maximum of 26% of the issued and paid up equity capital of the company, subject to a maximum of INR 100 crore. With the commissioning of the project, railway officials said that Indian Railway will be upgrading its technology to the next generation, where the new locomotive which will have 12,000 horsepower will have the capacity to pull a higher pay load at a much higher speed of 100 kilometer per hour. This will enable the Indian Railways to cut down their operational and maintenance cost.

Punjab excise department plans to target steel units

It is reported that Punjab excise & taxation department will have to work hard this year to meet its target of INR 7,000 crore for this financial year. The target is 25% ahead of last year’s tax collection, which was INR 5,800 crore. The officers have been told to focus more on steel, hosiery, sanitary ware, marble and plywood industry.

Mr A Venuprasad chief commissioner of excise & taxation department said that "These sectors indulge in tax evasion. We can grow up to 40% in these areas. Last year, we registered a growth of about 15%. Punjab has a huge potential to generate revenue for the department, especially hosiery, iron and steel industry. This needs to be tapped.”

He said further added that "Though we had introduced e filing scheme in the last financial year, we did get encouraging response. We want to make it more popular."

Meanwhile, the department is still not clear as whether the dhaba tax and tax on embroidered cloth has to be levied or not.

Mr Kelkar wants Goa to protect coastline form iron ore mining

Dr Vijay Kelkar chairman of the 13th Finance Commission has informed that the President of India has said that the commission has been given additional tasks to evolve a mechanism for new tax regime under which the whole of country could be turned into a common market and also how to fund the states to protect the environment.

Dr Kelkar said that there is a proposal to do away with the goods and services tax and that the commission has been asked to study the feasibility and submit its report along with the mechanism to devolve funds for environment and ecology protection.

He also warned the state to take measures to protect its coastline. He said the state’s coastline could be threatened by global warming leading to it losing 4% to 5% of low lying areas due to submergence in rising waters and leading to various health and social problems.

Mr Digambar Kamat chief minister of Goa has declared that the government would be supportive of industry. He said that GCCI by its effective functioning and completing 100 years of existence has made Goa proud.

Mr Kamat said that he was pained to take the decision to scrap the special economic zones as he did not want to do anything against the will of the people. He also said that he has asked the task force formed for preparation of regional plan 2025 to think of mechanism to protect identity of state villages while allowing development.

Orissa HC gives 3 weeks time to CIL MCL

Express News Service reported that Orissa High Court has granted three weeks time to Coal India Limited’s Mahanadi Coalfields Limited to file its response on the issue of short supply of coal to industries.

The division bench comprising acting chief justice Mr IM Quddusi and justice Mr BN Mohapatra have, however, ordered continuance of the interim arrangement of supply of at least 14,000 tonnes of coal per day by MCL to Nalco.

2 million tonnes cement plant by SAIL in quandary

It is reported that Steel Authority of India Limited's proposed 2 million tonnes cement plant's fate near Rourkela is now lurching in a balance. Hidden political agenda has left the plant in a dilemma, which has not gone well by the localities.

SAIL board on August 30th 2007 had taken a decision to set up 3 mega cement plants at Rourkela, Bhilai and Bokaro keeping in view of the expansion capacity of these steel plants and meaningful waste management of exhausted slags through these plants.

Bhilai and Bokaro steel plants have already signed MoU with some private companies to kick off the construction of the said plants. However in a sorry state of affairs, Rourkela even after 8 months has not achieved the same feat, thanks to some unknown reasons, which has raised eyebrows in localities.

As many as 15 companies including two foreign companies had evinced interest through their EoI and eight of them companies were short listed for technical committee approval for the projects. Meanwhile, two companies have already inked MoU with SAIL for Bhilai and Bokaro, where as the fate of Rourkela is still in a state of uncertainty.

Small car segment dominates global auto sales

According to Future Steel Vehicle Phase I Engineering Study preliminary findings, conducted by EDAG, in the coming decade, emerging economies including India, China and Eastern Europe will drive the growth in the global automobile industry. The largest growth contribution to the auto markets in these countries will be the fast growing small car segment.

FSV phase I is investigating architectural changes driven by advanced hybrid and fuel cell power train systems as well as gathering market data that will influence the project’s next phase decisions. The phase I final report is expected in early 2009.

With India claiming the lead as one of the largest producers of small cars in the world, this segment accounting for about three-fourths of the market, the country is set to emerge as a global hub of small-car manufacturing.

Launched in January 2008, the TATA Motors Nano will create a new segment in passenger cars, straddling the gap between two wheelers and the Maruti 800. Hailed as the cheapest car in the world with a USD 3,000 list price, the Nano could attract 300 million buyers in India by 2020.

By 2012, global sales of small cars are expected to be around 29 million per year, an increase of 65% from a decade earlier. In Western Europe, the market for micro cars is projected to rise nearly 50% by 2012. Even in the United States, sales of small cars are expected to grow 25% by 2012 to 3.4 million.

No escape from cement price hike in India - Holcim

Swiss cement major, Holcim, promoter of two of India's biggest cement companies, ACC and Ambuja Cements, said that there is no escape from increasing the cement prices in India considering the high energy costs.

Mr Paul Hugentobler member of executive committee of Holcim said that the cement prices across the world including in India has to rise by USD 20 to USD 30 per tonne so that the companies can maintain their profitability.

He added that "If we compare the first quarter of this calendar year with the same period of last year, our profitability has come down by 5% to 7%. If the input costs continue to rise like this, we will not have any other option but to raise prices."

Mr Hugentobler said that "There could be a demand slowdown. If raw material prices keep rising like this, the demand will obviously come down."

Many cement companies are looking at increasing their prices in the coming months to cushion the impact of rising raw material costs. On the government's move to put a ceiling on cement prices, Mr Hugentobler said if this continues, the cement companies may have to shut shop.

Holcim, which increased its stake in ACC this week by 3% to 46%, has made sufficient plans by substituting energy with alternative fuels to cut costs so that they can maintain their margins.

(Sourced from Business Standard)

Nano project cost up by 18% - Mr Kant

BS quoted Mr Ravi Kant MD of TATA Motors as saying that it has invested INR 2,000 crore for the Nano plant at Singur so far, 18% higher than the earlier investment plan.

Mr Kant said that it had earlier estimated the project cost at INR 1,700 crore. The original project plan has been reworked, thanks to the floods at the site last year, which primarily led to cost escalation. Despite the cost overrun, the INR 100,000 car would roll out from Singur before Durga Puja. Trial production will begin in July or August 2008. He added that "We are working at a breakneck speed so that we car start production as soon as possible."

Mr Kant also said that the company was flooded with enquiries from various countries for setting up production facilities as well as distribution networks for the small car.

He added that "The Nano has received enquiries for setting up plants and distribution networks from countries like the United States as well as Latin America, Europe and South East Asia. It is a great sense of pride for everybody. Nano has changed the rules of the market."

RIL gets INR 12,000 crore EPC contract for Sasan UMPP

BS reported that Reliance Infrastructure Limited has been awarded the INR 12,000 crore engineering procurement and construction contract for the Sasan ultra mega power project by its group company Reliance Power Limited, which is developing the 4,000 MW project through its subsidiary Sasan Power Limited.

RIL said that the EPC contract would be accounted on the Reliance Infrastructure’s balance sheet. About 42 months would be required to complete the contract. The notice to proceed would be issued to the company in a week’s time.

Reliance Infrastructure is currently developing projects of 1,200 MW. It has two major EPC contracts, one from the Haryana government and another from Damodar Valley Corporation. This is the first internal contract. It will soon float a sub contract for critical equipment such as boiler, turbine and generators.

Reliance Infrastructure has tied up with power plant engineering consultant Black & Veatch USA for engineering consultancy services for Sasan and Krishnapatnam ultra mega power projects.

Jharkhand HC orders government to pay rent to HEC

Ranchi Express reported that there's finally some hope for the Heavy Engineering Corporation that has been facing difficulties in fulfilling orders due to financial crunch.

The Jharkhand High Court has directed the state government to make payment of arrears of rent to the HEC within 5 weeks. The government has to pay the arrears for using the corporation's building and residential quarters.

The court directed the secretary of building construction and the chief of HEC Township to hold joint meetings and complete the calculation of the amount of rent within 3 weeks. It also directed the state government to make the payments thereafter within 2 weeks.

ONGC to start commercial production of CBM soon

BL reported that Oil and Natural Gas Commission seems to have finally stepped up gas on coal bed methane development. Having bagged a USD 200 million project for turnkey CBM development and exploration in Jharkhand and Bengal in early 2006, it is planning to start commercial production from Jharia Parbatpur block by end 2008 or early 2009.

A firm agreement for selling up to 50,000 cubic meters CBM from Jharia is likely to be in place in the first week of July 2008. In addition, it is planning a fresh development campaign beyond the purview of ongoing contract for CBM development in Ranigunj block in Bengal.

Both the blocks, having reserves of most ancient coal available in India, were acquired in pre CBM Policy days and held jointly with Coal India Limited. ONGC’s Ranigunj block is located between the Ranigunj of Essar, which is being developed and producing field of Great Eastern Energy Corporation.

ONGC has already drilled one pilot production well in Ranigunj. While the well is currently put on test to ascertain the flow rate, plans are finalized to drill two more pilot wells. Depending on the results, it may go for a 100 to 150 well commercial development program in the block in 2009-10.

Major firms plan stake in Dighi Indapur railway project

BL reported that companies like Konkan Railway Corporation Limited, Rail Vikas Nigam Limited, IL&FS and IDFC are planning to pick up stake in the INR 550 crore Dighi Indapur railway project.

It is learnt that, KRCL and RVNL have expressed interest in acquiring 26% stake each while the financial investors like IL&FS and IDFC are interested in a smaller share. The project is currently awaiting for railway board's approval, after which the construction work on the project will commence.

A special purpose vehicle will be formed for implementing the project.

Apollo Tyres plans INR 110 crore capacity expansion in South Africa

Apollo Tyres has launched an INR 110 crore passenger and truck bus tyres capacity expansion project at Ladysmith and Durban facilities of Dunlop Tyres International (Pty) Limited.

DTIPL had stretched the combined capacity of both the plants from 150 tonnes per day in April 2006 to the current level of approximately 180 to 190 tonnes per day, through various de bottlenecking practices.

SAIL RSP suffers loss of INR 5 crore due to power cut

SNS reported that nature’s fury cost a huge amount to Steel Authority of India’s Rourkela Steel Plant as its production was halted for quite sometime.

Sources said that the 4 blast furnaces of RSP came to a grinding halt for more than 2 hours as the electricity supply from the dedicated power grid Central Power Plant I was disrupted. The CPP was hit by a thunder and lightning and the power generation stopped immediately thus cutting power supply from the four blast furnaces immediately. But the fourth BF Saraswati, the largest one was made functional by diverting power from other sources though it took sometime to start production in the other three.

This disruption in production cost over INR 5 crore to RSP, but fortunately there were no further losses. Mr BN Singh MD of RSP said that "Of course we faced this problem but there is nothing to panic about as we managed to restore the power supply soon."

SAIL likely to form a JV with SCI

ET reported that, with ocean freight soaring due to high fuel prices, Steel Authority of India Limited is planning to run its own fleet of vessels in partnership with public sector as well as private players to ship imported coking coal.

AS per report, SAIL is likely to form a JV with Shipping Corporation of India to own, operate and charter large and medium sized dry bulk carriers. The move is expected to benefit both the public sector companies as it would help SCI increase its capacity and SAIL cut its coal import cost.

The new JV is likely to take shape as a public private partnership project. While SCI and SAIL are likely to hold 25% stake each in the proposed venture, the remaining 50% is expected to be offered to private players including ship manufacturers or ship owners.

A MoU between the two firms is expected to be signed next week.

Damodar Bachao Andolan demands clean water from CIL CCL

Ranchi Express reported that a delegation of the Damodar Bachao Andolan led by legislator Mr Saryu Rai has Mr RP Ritolia CMD of Central Coalfields Limited and submitted a memorandum demanding clearing the river of all pollutants. The memorandum also called upon Central Coalfields Limited to take steps for providing civic amenities including drinking water to residents of the Central Coalfields Limited areas.

Mr Ritolia informed the delegation members of the river’s cleansing and restoration of its ecology was a priority for the company. He said that section for filling up 7 quarries along the riverfront, have already been obtained and the work would take off once the allocated funds were released.

He assured of prompt action to embank the Chutua Nala near the Kedla Washery, when his attention was drawn to the problem. He also assured the delegation of prompt survey to study the deleterious effect on the environment and the ecology along the river caused by over burden, ejected coal and fly ash.

Power majors eye global materials to cut costs

BS reported that rising input prices are forcing companies in India's power sector to look for new ways to bring down escalating project costs, including procuring raw materials from foreign markets.

As per repot, Bharat Heavy Electricals Limited, for instance is planning to seal bulk purchase deals for critical raw materials from countries like China.

A senior BHEL official said that "We are now planning to procure bulk supply of raw materials from overseas countries, especially countries like China, where steel is available at cheaper prices."

Most of the companies admit that their margins would be under pressure against the backdrop of rising raw material costs. The prices of hot rolled coils of steel in India have increased from INR 29,000 per tonne from January 1st 2008 to INR 34,000 per tonne. This price rise in addition to the rise in prices of other raw materials has led to project costs shooting up for companies like BHEL.

The power index has declined by 47.4% from 4,647.66 since January 1st 2008 to 2444.42 points now. The benchmark Sensex, however, has declined by 30% from 20,300.71 to 14,220.0 points in the same period.

The power transmission companies are also at the receiving end of the raw material costs. Experts believe that the situation might become acute in coming days because of a shortage of raw materials. The equity constraints may make the situation worse for the companies.

NTPC to go ahead with Lohari Nagpala project – Report

BS reported that centre has ruled out the stopping of the construction of National Thermal Power Corporation's 600 MW Lohari Nagpala project in Uttarakhand.

Mr Jairam Ramesh union minister of state for power & commerce said that NTPC's project would not be allowed to fall prey to the pressure of environmentalists, who are against the dam on Bhagirathi in Uttarkashi district.

It may be noted that Lohari Nagpala project is facing the wrath of the fasting environmentalist Mr GD Agrawal who is on an indefinite fast to demand stoppage of construction activities.

AP to expedite Vadarevu and Nizampatnam port works

BL reported that development of Vadarevu and Nizampatnam ports and industrial corridor in the coastal area of Prakasam and Guntur districts will boost the industrial growth and create employment opportunities.

Dr YS Rajasekhara Reddy chief minister of Andhra Pradesh, while reviewing the ‘Vadarevu and Nizampatnam Ports and Industrial Corridor’ project said that these projects need to be expedited as they would help attract more industries. He added that "Unlike the coastal regions of Visakhapatnam, East Godavari and Nellore that were already witnessing tremendous progress, Prakasam and Guntur districts are lagging behind. Through these projects, it would provide more employment opportunities and improve economic activity."

Mr Reddy said that there is scope in the backward regions of Prakasam and Guntur districts to woo companies in the pharmaceuticals, textiles and ship building sectors. He directed officials to expedite the land acquisition process for setting up of the hinterland of both the ports. The developers were asked to provide training for boys and girls at the industrial training centre.

The Vadarevu and Nizampatnam Ports and Industrial Corridor project is being developed by the government of Ras Al Khaimah, one of the Emirates of UAE, with their Indian partner, Matrix Enport Holdings Private Limited.

Chennai Port turnover up by 115.3% in 5 years

Exim News Service reported that the turnover of Chennai Port has more than doubled from INR 413.51 crore in 2003-04 to INR 890.40 crore in 2007-08, registering a growth of 115.3%, enabling it to take up a larger number of capacity augmentation projects.

Mr TR Baalu union shipping minister reviewed the progress of the proposed mega terminal at Chennai, which will have a draught of 22 meters. The INR 3,105 crore terminal will be able to handle ultra large containerships of even the Malaccamax 18,000 TEU ship that is still virtually a mirage on the horizon. The project has generated considerable interest among the prospective bidders and nearly 40 private players have participated in the pre-bid meeting, the Minister was told.

Regarding construction of a container freight station at Sriperumbudur, he directed the officials to get in touch with the state government for allotment of 100 acres of land. He also called for pursuing the feasibility study for construction of an elevated corridor from Maduravoyal to the proposed CFS for seamless cargo movement.

Chennai Port Trust’s other plans include a roll off roll on terminal and multi level car parking for export of cars, as well as a cruise terminal. With the operationalization of this container terminal, Chennai Port’s position as a hub port for containers on the East Coast would be fortified.

Durgapur Asansol is on an industrial high

ET reported that controversy over new industrial set ups contributed much hype to Haldia and Singur in West Bengal. But the two other industrial destinations namely Asansol and Durgapur have silently achieved huge success in terms of domestic and foreign investments. This region is waiting for huge FDI in sectors like power, IT, education and health care.

According to state government sources, the Durgapur Asansol region will soon emerge as the most preferred destination for investment in the state. The state government's plans for new power plants, infrastructure development and simplification of land acquisition process will help the state to attract new business in this region.

With foreign funds flowing into the state, government is poised to position Durgapur as the next big investment destination in West Bengal. Even though Durgapur failed to make the cut among the top 36 cities in India in a survey conducted by the Confederation of Indian Industry, Asansol eventually emerged as the 33rd spot to beat Dhanbad, Jamshedpur and Jabalpur. Surprisingly Haldia, Siliguri, Ranchi, Bhubaneswar and Guwahati failed to find a place.

There is no denying that the emergence of Asansol once again proved that the amount of new investment in Durgapur was not enough compared to public sector giants like the Eastern Coalfields Limited, Indian Iron & Steel Company Limited and Chittaranjan Locomotive Works.

TATA Steel India operation better than others – Report

ET reported that TATA Steel's Indian operation is the best performing one among its operations in other parts of the globe when measured by EBIDTA margin.

As per report, with 43% EBIDTA margin, TATA Steel's Indian operation is the best performing one followed by its operation in Thailand with 12%, TATA Steel UK with 9% and NatSteel Asia with 3%.

In fact, the Indian operation has helped TATA Steel to post a relatively good show on EBIDTA margin for the year ended March 31st 2008. However, it came down to 14.05% for the year ended March 31st 2008 as against 31.1% in the previous fiscal.

TATA Steel sold 31.99 million tonnes steel in the last fiscal, but Indian output was just 4.78 million tonnes as compared to 23.08 million tonnes by Corus, 2.49 million tonnes by NatSteel Asia and 1.43 million tonnes by TATA Steel Thailand.

TATA Steel's Indian operation contributed USD 5.005 billion to its consolidated revenue of USD 33.011 billion for the year ended March 31st 2008 as against USD 25.098 billion by TATA Steel UK, USD 1.915 billion by NatSteel Asia and USD 1.02 billion by TATA Steel Thailand.

TATA Steel India's EBIDTA margin has, in fact, increased by 2% at 43% over the previous fiscal and turnover jumped by 11% from USD 4,494 million in 2006-07 fiscal.

Essar plans port terminal for LNG and container cargo facility

Live Mint reported that Essar Group is planning to expand its logistics business by building a port terminal for liquefied natural gas and a container cargo facility as well as freight stations and depots under its arm Essar Shipping Ports & Logistics Limited.

An Essar official said that "We are planning to build a port terminal for LNG handling and storage. The group is looking at setting up this facility in the west coast." He added that expanding into LNG would be a logical extension of the group’s existing port business.

Essar has a port and terminal facility at Vadinar in Gujarat providing handling, storage and terminalling services for crude oil and petroleum products to refineries and traders. It is also setting up a 30 million tonnes per annum all weather port and jetty at Hazira in Gujarat for import of iron ore, pellets, coal, limestone and export of finished steel products. It also proposes to build an integrated terminal at Salaya for handling coal and pet coke used in power plants.

Essar has also expressed interest in developing a fourth container terminal at JN Port. It has committed investments of more than INR 10,000 crore over the next 3 years.

Steel price hike stalls projects worth crores in Maharashtra

DNA reported that projects across Maharashtra, costing INR 2,000 crore, have either come to standstill or are delayed, thanks to the hike in steel prices over the last few months. The state government has now appointed a committee to consider increasing the contract price.

The projects allotted by the Public Works Department include bridges over roads and rivers, Ashramshalas and hospitals in rural areas. The contractors, unable to cope with the price rise, held up the projects for more than 6 months. Only some contractors, who are financially sound, have been able to keep the projects afloat, though the pace of these projects remains slow.

As per the government’s policies, the escalation of price given to contractors is according to the wholesale price index announced by Reserve Bank of India from time to time.

The WPI announced by RBI in February 2008 was not in keeping with the market price of the steel. The WPI announced by RBI in February 2008 was 282.5 against 277 in September 2007. The hike was less than 1%, while the steel price hike in this period was over 50%.

An official from PWD department said that "The price of steel went up to INR 49,275 per tonne in March 2008 from INR 30,900 per tonne in October 2007. In such a scenario, we cannot offer escalation as per WPI rate. RBI has not announced fresh WPI after February 2008, though it gave a provisional growth of 21% in WPI in March 2008. However, provisional index is not considered and contractors have been demanding escalation at market price."

Commerce and finance ministry spar over steel duty

BS reported that union commerce ministry and its finance counterpart are at loggerheads over allowing duty free supply of steel to special economic zones. As per report, commerce ministry is likely to approach cabinet secretary Mr KM Chandrasekhar over the matter.

The tussle has arisen out of India's war against inflation, which touched 11.42% for the week ended June 14th 2008. The government on May 10th 2008 had imposed an export duty of 5% to 15% on various iron and steel products to boost the availability of the metal in the domestic market.

Finance ministry had stuck to its stand that the export duty would be applicable to supplies to SEZs, which is classified as exports. The commerce ministry has been demanding a clarification or amendment to the Central Board of Excise & Customs notification, which exempts steel supplies to the zones from duties.

On its part, the Directorate General of Foreign Trade, which is under the commerce ministry, has relaxed the ban on cement exports to SEZs. The ban was ordered on April 12th 2008.

Other contentious SEZ-related issues between the commerce and finance ministries include norms providing income tax exemption to the zones. Commerce secretary Mr Gopal K Pillai recently told SEZ developers in Mumbai that the issue would be referred to the empowered group of ministers on SEZs, headed by external affairs minister Mr Pranab Mukherjee.

Meanwhile, commerce ministry is planning to amend the SEZ Rules, 2006, to streamline many procedural matters for the zone developers and the units inside them. This would be the fourth round of amendments to the rules, which came into force in February 2006.

Karnataka approves 65 proposals worth INR 1,062.20 crore

PTI reported that Karnataka government has approved 65 proposals with an envisaged investment of INR 1,062.20 crore in the sectors like steel, tourism and hospitals, which will generate 29,024 jobs.

As per report, state level single window clearance committee has examined various proposals and gave its nod to 65 of them.

The maximum investment would be in the steel sector with INR 350.42 crore, followed by tourism with INR 208.05 crore, engineering with INR 97.13 crore, flight training academy with INR 49.86 crore, ready made garments with INR 48.95 crore and hospital with INR 48.79 crore.

Mr V Umesh committee chairman and principal secretary in commerce & industry department said that "Some of the important proposals cleared include flight training academy in Mysore and super specialty hospital for dialysis in Bidar, Gulbarga, Bijapur, Davangere, Mangalore and Mysore."

SAIL DSP march towards growth

ET reported that Steel Authority of India Limited’s Durgapur Steel Plant has continued its march towards growth and profitability by posting a four figure net profit of INR 1,009 crores in 2007-08 fiscal, up by 62% YoY as against INR 624 crores in 2006-07 fiscal. Since 2006-07, performances have improved to unprecedented levels.

In the just concluded 2007-08 fiscal, DSP recorded all time best performances in all major areas of production. It has achieved best ever levels of production, techno economics and value added products both in 2006-07 and 2007-08 fiscals.

Mr V Shyamsundar MD of DSP said that "We have planned to achieve further substantial growth in production of hot metal, crude steel and saleable steel over the previous year."

DSP took strategic initiatives to increase value added products in its product basket which resulted in best ever production of special steels at 580,000 tonnes, a quantum jump of over 60% YoY over corresponding figures of 2006-07. It envisages growth, improved product mix and adoption of cost effective technologies has already got the approval of the SAIL board and requisite environmental clearances.

Punjab steel units contemplate diversification

BS reported that, for small and medium enterprises in Punjab, there seems to be no respite as they continue to suffer from one problem or another. Initially they faced labor shortage, subsequently rising steel prices led to a lot of them closing down and now the surging inflation. It took months for the government to check steel prices, but still it has failed to achieve the desired results for SMEs in Ludhiana

According to Mr SC Rehlan regional chairman of Engineering Export Promotional Council, the issue of steel prices is still not settled. He said that even though the central government had taken various measures to break steel cartels and curb steel exports, industries in Punjab still failed to benefit.

He alleged that when the export duty on steel products was implemented, the steel supply to engineering industry was limited by the steel producers. With the export duty on steel items likely to be waived off, it once again could lead to escalation in steel prices. He added that with engineering industries in state not able to sustain them, many industrialists in state have started diversifying into other ventures, including real estate.

Mr DS Chawla former president of United Cycle & Parts Manufacturing Association Ludhiana said that it is not only the steel prices but prices of other raw materials that have gone up in past. He added that already the hike in steel prices had forced closure of many small enterprises based at Ludhiana, engaged in manufacturing bicycle parts. The rest have cut their production by 30% to 35%.

Another factor hampering growth of SMES in Punjab is the price of furnace oil.

According to Mr PD Sharma president of Apex Chamber of Commerce & Industry (Punjab), the price of furnace oil that was INR 13 per liter two years back has now touched INR 38 per liter. He rued that while the centre had asked the state government to slash sales tax on petrol and diesel, no concrete steps were taken to bring down the sales tax on furnace oil used by forging industry and cycling industry.

Cairn India and ONGC to jointly develop gas fields in Gujarat

Projects Today reported that Cairn India and ONGC have likely to finalize soon their plans to jointly develop the Ambe and North Tapti offshore marginal gas fields in the Gujarat coast.

The Cairn operated JV has pegged the estimated cost of developing Ambe at approximately INR 300 crore. ONGC is likely to pump in around INR 500 to INR 600 crore for development of North Tapti. ONGC proposes to build two platforms in North Tapti for production of 2 million standard cubic meters a day to 2.2 million standard cubic meters a day of gas and associated oil, which will be connected to Cairn's existing pipeline network for processing at Hazira.

The project will lead to natural gas production of 1.5 million standard cubic meters a day from Cairn operated Ambe field and 2 million standard cubic meters a day by ONGC's North Tapti.

Velankani Group plans silicon complex in Andhra Pradesh

Projects Today reported that Bangalore based Velankani Group is planning to set up a silicon complex at Visakhapatnam in Andhra Pradesh. The group will be investing INR 14,000 crore in the project the in next 7 years, of which INR 1,350 crore will be invested in the first 2 years of its operation.

The state government has already provided 150 acres of land for the purpose and is willing to provide another 80 acres of land. The complex will be used for manufacturing chlorosilanes, polysilicon and other silicon compounds for semiconductor and photo voltaic solar markets. The first poly silicon product is expected to be rolled out by October 2009.

VVJM boycotts TATA Steel project in Orissa

SNS reported that Visthapan Virodhi Jan Manch, the forum opposing TATA Steel’s proposed 6 million tonnes steel project in Kalinga Nagar steel hub, has boycotted a meeting convened by the Jajpur district administration to restore peace in wake of the fresh tension in the area.

The administration had invited the contractors engaged to erect the boundary wall which had led to a clash between pro project villagers and VVJM activists on June 25th 2008, the VVJM and others to try and resolve the dispute. The meeting was scheduled to be held on 28 June but the VVJM office bearers did not turn up.

Rejecting the peace move, VVJM leaders said that the administration has brought some outsiders in disguise of land losers.

Mr Rabindra Jarika general secretary of VVJM said that "We are not prepared to discuss issues with rank outsiders and hired goons." He added that the district administration was trying to misguide the tribal who had been agitating for their lives and livelihood over resolving the issue.

It may be noted that on June 25th 2008, people of Khadihatia and Gadhapur village who back the VVJM had clashed and chased contractors away, who had gone to the trouble torn area to restart construction of the boundary wall of the TATA Steel project. The irate mob also set fire to eight motorcycles of the contractors and their supporters who had come to the area.

Anti POSCO activists alleged kidnappers

SNS reported that the anti POSCO activists, who had undertaken the dredging of Jatadhari river mouth few days ago, allegedly took away two excavators of Dhirtiri Dredging Corporation from the drivers, to complete the work. The work has been completed after the machines were used and the excess deposited water was discharged into the sea through its mouth.

Sources said that about 2,000 villagers of Nuagaon, Dhinkia and Gadkujang under the banner of POSCO Pratirodha Sangram Samitiy had taken up the work on June 20th 2008 and completed it today, bringing relief to the villagers, who were panic stricken owing to the non release of water.

Meanwhile, Mr B Krishnamurty the corporation general manager lodged an FIR with police, stating that the two drivers were kidnapped and two excavators were taken away forcibly. He alleged that nearly 200 villagers threatened the drivers to go with them and help in the dredging work.

Sources said that the corporation is engaged by Indian Oil Corporation to expedite the pipe line work. The local villagers had been alleging that dredging the sea would facilitate sea erosion and many habitations would be submerged. After the intervention of the estimates committee of state Assembly, the dredging work by the corporation was stopped and the machineries were kept at the plant site, from where the villagers took them.

But anti-POSCO activist Mr Babuli Rout claimed that the machines were brought on rent.

CMI Group completes acquisition of Flat Products Equipments

Cockerill Maintenance & Ingenierie of Belgium announced that it has completed acquisition of controlling shares of Mumbai based Flat Products Equipments (I) Ltd and NT Strips & Automation Pvt. Ltd on June 25th 2008.

The Purchase Agreement signed on January 14th 2008 gave the Belgium Company approximately 55% of Flat Products Equipments and 100% of NT Strips & Automation shares. Subsequent to that an open offer was made to the existing public shareholders of the FPE (I) Ltd to acquire upto 20% of the fully diluted voting capital at the same price as was offered to the promoter shareholders i.e. at a price of INR 517 per fully paid up equity share payable in cash in accordance with the SEBI regulations.

Flat Products Equipments (I) Ltd designs and manufactures Rolling Mills, Processing Lines and other Auxiliary Equipments for Rolling and Metal Processing Industry worldwide. FPE employs 720 people located in the Engineering Office in Mumbai and in the two workshops at Taloja and Silvassa near Mumbai.

Mr. Jean-Marc Kohlgruber president of CMI Industry said that “With the completion of the acquisition process, we are now looking at world as a market to supply complete Cold Rolling and Galvanising Solutions to our customers. and it is a matter of extreme satisfaction that even when the process of acquisition was on customers continued to increase order position at the FPE (I) Ltd, with all manufacturing workshops being booked for next twelve months from domestic and international customer”.

FPE has post acquisition by CMI inducted Mr. Jean-Marc Kohlgruber president of CMI Industry, as the Chairman of the Board of Directors and Mr. Yves Honhon, CFO of CMI Group, as additional Director. Mr. T.R. Mehta has resigned as Chairman & Managing Director of the company, though he will continue to be associated with it, as a Director on the Board. Mr. Rob Johnson has been appointed as the Managing Director and Mr. Jean Gourp as Chief Operating Officer of the FPE (I) Ltd.

The CMI Group is an Industrial Group specializing in Engineering and Maintenance in the Energy, Defense and Industry sectors. Since its shareholders change in 2002, the CMI Group has been significantly increasing its order records, to reach closed to 900 millions in 2007. CMI employs more then 2700 people worldwide. Specific to steel engineering business, CMI is mainly present in Western Europe, Russia, China, USA and Brasil and provides steel makers with a range of products and technologies for the downstream of the Steel Industry.

Mr Marcus predicts sharp fall in steel prices to end boon

Financial Times quoted a leading industry consultant Mr Peter Marcus of World Steel dynamics as saying that global steel prices are set to fall steeply this year, bringing to an abrupt end a remarkable boom for the world steel industry.

Mr Marcus told the Financial Times that he is overwhelmingly negative about the outlook for steel prices in the remaining months of 2008, after a 12 month period in which prices have increased by more than 60%, even in the face of a slackening global economy.

He said that “The steel industry could be on the brink of a supply and demand disaster due to an upswing in global steel production coinciding with a faltering in global steel consumption, as credit problems and weak consumer and industry demand finally feed through to steel plants.”

Mr Marcus believes that “In spite of recent hefty rises in the price of raw materials such as iron ore and coking coal, most steel companies have increased their prices by a rate greater than their own cost increases.”

The report however quoted some other senior industry persons as believing that steel prices will hold up.
1. Mr Ralph Oppenheimer chairman of Stemcor said strong demand from developing regions will keep price firm for a few more years.
2. UK based steel consulting firm MEPS has said that prices will stay fairly stable at least until the end of 2008.

(Sourced from Financial Times)

High HDG prices may result in substitution by aluminum

Nobody needs to be told about the unprecedented steel prices levels globally in recent times, but the interesting fact is that due to surge in hot dipped galvanized steel prices, the difference between its alternative for some applications like covering ie aluminum sheets has shrunk, although aluminum prices have also increased but to a lesser extant.

The current levels and their specific gravity comparison is as under

Prices are in USD per tonne
Prices are indicative only

Thus, it is very clear that the same thickness of Aluminum sheets will have almost 1/3 weight of an HDG sheet, where as the price levels will be lower then HDG Sheets. Which means that aluminum sheet of same thickness would be cheaper than HDG sheet.

In addition, the advantages of the Aluminum over HDG are well known in the metallurgy as well as in usage especially with respect to corrosion resistance.

As thin HDG is mainly used for roofing or covering applications, possibility exists where we may see some users shifting from the HDG to the Aluminum sheets.

But the question is that weather users would switch to this substitute or not?

(Sourced from www.steelprices-middleeast.com)

Japanese steelmakers eying on Dongkuk SBQ plate markup

TEX reported that Japanese integrated steelmakers are watching with interest to see what price increase South Korea's electric steelmaker Dongkuk Steel Mill Co will execute in its domestic sales of ship plates to meet a cost increase of the company's slab imports from Brazil.

The report added that there is no information so far that Dongkuk Steel has settled its slab import negotiations with Brazilian integrated steelmakers for shipments in the July to September quarter. But it is considered unthinkable for the Brazilian steelmakers to reduce slab prices to USD 1,000 per tonne FOB or less in what they negotiate with the Korean customer, given a more advance in iron ore prices.

According to Japan's steel industry sources, if Dongkuk Steel and the Brazilian steelmakers have settled their slab deals this time at a price level of USD 1,000 per tonne FOB, its C&F value will amount to around USD 1,150 per tonne. The sources also forecast that Dongkuk Steel will need to sell ship plates at a dollar denominated price level of USD 1,300 to USD 1,400 per tonne FOB if the company's ship plate production is based on imported slabs at USD 1,150 per tonne CNF.

At present, Dongkuk Steel sets the asking price of ship plates at KRW 1,010,000 per tonne (USD 986) for domestic sales. Chances are the company will find it necessary to price up ship plates as import costs of Brazilian slabs are forecast to advance by as much as USD 400 per tonne in the July to September quarter.

Meanwhile, Japanese integrated steelmakers are scheduled to start their ship plate export negotiations with South Korea's shipbuilding companies in mid-July on shipments in October to March next. The Japanese steelmakers are expected to offer prices that will translate into JPY 130,000 to JPY 150,000 per tonne FOB, market sources believe.

(Sourced from TEX Report)

Mr Mittal appointed as independent director on Goldman Sachs board

The Goldman Sachs Group, a leading global investment banking, securities and investment management firm, on Sunday said that its board of directors has selected Mr LN Mittal to be one of the ten independent directors in the company, with effect from June 28th 2008.

In his role as an independent director, Mr Mittal will be serving on the Audit, Compensation and Corporate Governance and Nominating Committees of the Board. With the appointment of Mittal as an independent director, the total number of directors in the Board of the company gets increased to 13, of which ten are independent directors.

Mr Lloyd Blankfein chairman & CEO of Goldman Sachs said that "Lakshmi's experience judgment and independent thinking represent an important addition to our board of directors and will be of tremendous value to our people, our shareholders and our clients.”

Goldman Sachs relationship with MrMittal goes back to 2006 when Mittal Steel sought Goldman's advice on the landmark hostile takeover of Arcelor to create the world's biggest steel maker.

Mr Mittal is also a director of European Aeronautic Defense & Space, the parent of Airbus and of ICICI Bank, the largest private lender in India.

Brazilian steel sales surge before price hike by domestic mills

Bloomberg reported that Brazilian steel consumers are rushing to buy flat rolled steel to beat the next round of price increases, fueling record sales.

Mr Christiano da Cunha Freire president of the Sao Paulo based National Steel Distributors' Institute said that steel distributors have already booked orders of 372,000 tonnes of flat rolled products for delivery in July 2008. He added that sales in June will rise from a record 366,000 tonnes in May and 315,000 tonnes in April.

Mr Cunha Freire said that domestic prices for steel used by builders and automakers are set to increase by as much as 15% in July and August as Brazil's economy grows close to its fastest rate in almost four years. The move will bring the total price increase to 45% this year, after costs surged for iron ore and coking coal, used to produce steel.

He said that “There is still space for a fourth price increase in the fourth quarter of 10% for hot rolled steel and 10% for heavy plates.”

He further added that “Brazilian steel is still more competitive than imported steel.''

ArcelorMittal may wait 5 years to buy China mills - Reuters

Reuters last week citing Mr LN Mittal CEO & chairman of ArcelorMittal reported that ArcelorMittal will probably have to wait at least five years to buy a majority stake in a Chinese competitor.

According to Reuters report, Mr Mittal said that China's government may take that long to end its opposition to foreign takeovers in the steel industry.

Mr Mittal also said that the Chinese steel industry, made up of many small mills, isn't sustainable and consolidation would lead to a producer with 80 million tonnes of capacity as early as 2010.

South Korean metal workers union threatens walkout

South Korea local news agency Yonhap reported that South Korea's metal workers will wage a two hour strike on Wednesday to protest the resumption of US beef imports as well as management's refusal to accept the union's demands.

The Korea Metal Workers' Union, with more than 140,000 members in automobile, steel, machinery and shipping sectors has been holding negotiations with management on the union's demands for a hike in minimum pay and for irregular workers to be granted the right to organize.

A Korea Metal Workers' Union official said that "Up to 75% of the union members agreed on the walkout amid escalating requests of proper negotiation with the management and renegotiation of the US beef import deal.”

The metal workers' union claims it was pushed to carry out a walkout as four major carmakers shunned its proposal on collective negotiations to more effectively tackle issues of wages, temporary employees and growing gaps between large and small companies.

Major business groups, including Hyundai Motor and GM Daewoo, have been refusing to participate in the ongoing negotiations since April 15, sticking to the enterprise-level negotiations with their own unions.

Korea Metal Workers' Union said that if the four companies continue to boycott the negotiations until the end of next week, the union will launch a massive weekend protest in Seoul.

Sims UK buys West Midlands recycling plant

It is reported that Sims UK has purchased Halesowen based Evans and Mondon Ltd another West Midlands based ferrous metal recycling plant. The cost of the acquisition of Evans and Mondon Ltd has not been released due to confidentiality issues.

Evans and Mondon Ltd has been in operation since 1947 and currently employs a staff of 16 people. The facility recycles approximately 30,000 tonnes of metal per year.

Sims UK, a subsidiary of global metal recycling giant Sims Group, acquired Evans and Mondon Ltd. A mere seven months after it purchased scrap metal merchant, ER Coley Ltd.

Reports confirm that Sims intends to consolidate the two businesses, which are located on the same industrial site.

Mr Tom Bird MD of Sims UK said that “The West Midlands region is an area of the country where Sims Group is keen to strengthen its foothold. Late last year we acquired ER Coley Ltd and the proximity of Evans and Mondon to this site allows for an easy consolidation of the two businesses with a combined total of 100,000 tonnes of metal per annum.” He added that “These two businesses offer the perfect platform for Sims to continue its expansion into the Industrial Heartland of the UK.”

(www. recycle.co.uk)

ArcelorMittal to charge carmakers higher prices - Report

Auto Motor und Sport citing unnamed people close to the industry reported that ArcelorMittal will raise steel prices paid by European automakers such as Daimler AG by about 60% through a series of increases over the coming months.

The German magazine citing an interview with Mr Jean Luc Maurange VP of ArcelorMittal's automotive unit said that ArcelorMittal’s costs have climbed by an equivalent amount and it is looking to raise prices to prevent a painful adaptation next year.

Mr Maurange was cited as saying in a summary of an article to be published July 3rd 2008 that the move is necessary as no individual company should be left to shoulder cost increases on its own.

Nucor CEO sees a decades of high commodity prices

According to Mr Dan DiMicco chairman, president & CEO of Nucor, the price of steel making raw materials such as iron ore, coal and scrap metal will continue to rise for several years, keeping pressure on manufacturers and consumers.

Mr DiMicco during the American Metal Market's Steel Success Strategies conference told delegates that "The bull market for commodities will last for decades to come and our customers need to get used to it,"

He said that "Iron ore is up several hundred percent, scrap prices are USD 600 to USD 700 per ton, pig iron is USD 900 per ton and coal is rising several hundred percent even as we speak. I believe raw materials, including scrap, will continue to see escalation in prices.”

In his address, Mr DiMicco gave an upbeat forecast for steel, citing favorable industry dynamics driven by global demand, especially from China, India and other emerging economies. He compared the current climate to that of the late 1940s and early '50s, when the industry was being rebuilt after the destruction of World War II.

He said that "But today is different in that we are building an infrastructure that didn't exist before. Consumption growth is rocketing to 5 percent to 7% per year and it is being driven by a demographic of 2 to 3 billion people in a world that wants a better standard of living.”

His comments, during the conference, echoed those of Mr John Surma CEO of US Steel Corp. Mr Surma told Reuters that spiraling iron ore costs were pushing steel prices even higher and he warned that growing demand is straining miners' capacity to supply raw materials. Steel prices have soared almost 50 percent this year, as raw material costs continue to climb and global demand shows little sign of abating.

Pilsen Steel 2007 profit up by 27% YoY

CTK reported that the Pilsen Steel steelworks generated a gross profit of over CZK 970 million in 2007 up by 27% YoY as compared to 2006 and its sales exceeded CZK 5.42 billion up one third year on year.

Ms Hana Hadrbolcova a spokeswoman of Pilsen told CTK that "The firm exported 85% of its output, mainly to Germany, Italy, Spain, India, Russia, the USA and China.”

Pilsen Steel is the world's leader on the market of windmill shafts and the second largest producer of crankshafts for giant four stroke engines, used mainly in the shipbuilding industry. It’s produces open die and tooled forgings of up to 80 tonnes of weight.

CSMG acquires carbon capture technologies from UTEK

UTEK Corporation and CSMG Technologies Inc announced that CSMG Technologies has acquired Carbon Capture Technologies Inc, a wholly owned subsidiary of UTEK, in a stock transaction.

Carbon Capture Technologies Inc holds a worldwide exclusive license to a composition and method for use of a novel Carbon Dioxide adsorbent. Researchers at the University of Ottawa have developed recyclable CO2 adsorbents based on surface modified nano porous silicas.

The materials show high adsorption capacity that is both fast and reversible, allowing it to be reused repeatedly in a high throughput periodic cyclic adsorption process. The adsorbents can be used in both wet and dry environments, potentially eliminating significant engineering challenges. The potential uses for the technology include capturing the bulk of C02 emissions from coal-fired power plants in order that these greenhouse gasses could be sequestered and thus reduce the carbon footprint of such facilities, as well as surgical and mine rescue applications.

Mr Joon Park appointed as POSCO TJ Park foundation chairman

It is reported that on the 16th POSCO TJ Park Foundation held the board of directors meeting and decided to appoint, Mr TJ Park chairman as the chairman of the board.

Mr Tae Joon Park, who established POSCO and developed it into a global steel corporation, as the chairman of the board in order to further expand the contribution activities for the nation and human community development based on the establishment & venture philosophy of POSCO. The foundation plans to actively conduct academic & research promotion and human resource development.

In 1971, while Honorary Chairman Mr Tae-Joon Park was still in office as the CEO, he established the Steel Scholarship Foundation, which is the basis of POSCO TJ Park Foundation, with feed money of KRW 60 million and has been cultivating the core human resources of the age. In 1976, the Steel Institute was established to play a role in higher education, and 12 pre, elementary, middle, and high schools were founded and operated in Pohang & Gwangyang through which great efforts have been exerted in creative personnel development. In 1986 POSTECH was also established to nurture advanced experts in basic science & technology and by forming an advanced research base, it has laid the foundation for Korea’s advanced science and technology infrastructure.

POSCO TJ Park Foundation, which was launched on the basis of the Steel Scholarship Foundation, is currently conducting 11 contribution projects for Korea and Asia under 3 major strategies of
1. POSCO Asia Fellowship for Asian exchange & cooperation
2. Next generation human resource development
3. The practice of participation & sharing.

In the future POSCO TJ Park Foundation will raise the status of Global POSCO social contribution activities by which the position of global POSCO will be further strengthened based on trust and respect.

AZZ to acquire Blenkhorn and Sawle Limited

AZZ Incorporated, a manufacturer of electrical products and a provider of galvanizing services, announced the signing of an asset purchase agreement with Blenkhorn and Sawle Limited, a privately held company headquartered at St Catharines in Ontario of Canada to acquire substantially all of its assets. The acquisition is effective July 1st 2008.

The purchase price is approximately USD 14 million in cash plus assumption of certain current liabilities. Blenkhorn and Sawle has been a premier supplier of electrical equipment since 1948. As a custom turn key solutions provider and certified professional engineering house they have supplied products to the major utility companies, oil and gas, mining, industrial as well as nuclear power industries.

The acquisition will compliment AZZ's current product offering and expand served markets. This acquisition should provide additional potential for continued growth and expansion of the Electrical and Industrial Products Segment of AZZ incorporated.

Mr David H Dingus president & CEO of AZZ incorporated said that "This acquisition is an excellent fit with our existing products and significantly strengthens our marketing and customer service opportunities in Canada, a strategic growth area targeted by the Company. We have been looking for opportunities to expand our participation in the Canadian utility market, as well as Canadian oil and gas, oil sands, mining and industrial markets.”

AZZ incorporated is a specialty electrical equipment manufacturer serving the global markets of power generation, transmission and distribution and industrial, as well as, a leading provider of hot dip galvanizing services to the steel fabrication market nationwide.

Empire Industries bags structural steel modularization project

Empire Industries Ltd said that its one of its subsidiaries secured a unit priced subcontract, expected to be worth in excess of CAD 12 million, for a structural steel modularization project for Suncor's Voyageur expansion program near Fort McMurray in Alberta.

According to the subcontract awarded by Ideal Welders Ltd, the company will assemble 179 modules, totaling over 5,000 tonnes of structural steel at IWL's module yard outside Edmonton. The company said the work would start in October 2008.

Rotek announces USD 82 million expansion of Ohio facility

Rotek Incorporated, a leader in the design, development and manufacture of large diameter slewing ring bearings, announced plans to invest USD 82 million to expand its plant at Aurora in Ohio. The expansion is expected to create up to 150 new jobs, bringing employment up to 365 at the new facility.

Rotek said that the investment includes a second ring mill at the Aurora facility to serve its own expanding large diameter slewing ring production and help meet the growing demands in the United States for seamless rolled rings. With ring diameters of up to 280 inches and individual weights of 17 tons, the new SMS Meer RAW 400/400/6000 ring mill will be the most modern facility of its kind in the United States, providing high quality rolled rings for high integrity applications in the wind energy, construction, tunneling and offshore markets. Work on the new facility is scheduled to commence at the end of May 2008 and the plant is expected to begin production in the first quarter of 2010.

Large Diameter Slewing Ring production at the Aurora site will also be further expanded with the addition of a new 116,000 square-foot manufacturing plant housing the latest in production machinery and tooling.

Mr Leonard F Osborne president of Rotek said that "The planned expansion is an integral part of the company's growth strategy. This significant investment represents our continued commitment to provide the highest quality products and customer service possible. The investment will be the largest made since Rotek's founding in 1962.

Several US firms sign deals to invest in Vietnam

It is reported that several US companies signed deals to invest in Vietnam during a visit by the Vietnamese prime minister to Washington, to further expand business between the two countries.

Mr Carlos Gutierrez commerce secretary of US in a statement said that "These are important investments that will improve Vietnamese productivity and add to the growing economic partnership between our countries.”

Mr Gutierrez and Mr Nguyen Tan Dung PM of Vietnamese met privately before the two officials presided over the signing of several commercial deals.

The US Commerce Department said the new arrangements seek to expand already growing US exports to Vietnam, which grew by close to 73% in 2007.

Ruukki multi storey construction for Technopolis Ruoholahti

The concept was launched in Sweden in November and the first projects are expected to start up this year. A new project got under way in Finland this spring in the form of 10,700 square meter maintenance and office building to be used by Finncomm Airlines at Helsinki-Vantaa Airport.

Almost 14,000 people work in Technopolis Plc’s office buildings in Finland and St Petersburg of Russia. The Ruoholahti technology centre is being built in three stages and will total 27,000 square meters when complete. Tenants will be small and large high tech companies.

Ruukki’s foundations, frame and envelope package helped to fast track construction of the first stage. Ruukki delivered for Technopolis Ruoholahti
1. 3D design of foundation, frame and envelope, manufacture and installation
2. Installation of hollow core slabs and load-bearing concrete walls
3. 4D project management

Mr Saku Sipola president of Ruukki Construction said that “The first project to be built using the new multi storey construction concept has kept the promises given. The benefits of our solution are construction speed, efficiency and safety. These are best ensured when we are brought into the planning and implementation of a project at the very beginning.”

Mr Pirkko Mikkola construction manager from Ruukki Construction said that “Construction speed, cost savings and work site safety are the basis of a total solution where structure compatibility and the work stages have been carefully planned beforehand,” he added that work on erecting the frame soon got under way once the pile footing had been installed.

Daggan Steel improves efficiency with Kodak technology

Eastman Kodak Company announced that Duggan Steel Group has installed Filestream’s electronic document management system and eight duplex i1220 workgroup scanners to manage the vast amount of paperwork generated as part of ongoing operations supplying steel and steel related products to the whole of Ireland’s agricultural and construction industries. The project has been completed by Filestream reseller Woodsoft Limited.

One of Ireland’s largest steel stock holding companies and a top 3 supplier of steel roofing and cladding in the country, Duggan Steel Group is privately owned, headquartered in Kilkenny, with depots in Cork and Limerick.

Easy management and quicker retrieval of steel test certificates was the initial driver behind investing in an EDM and scanner solution. Test certificates document the exact chemical and mechanical properties of steel batches and associated products made from it. Mr Flavin explains that “Builders want to know that the steel they are buying is strong enough based on its iron, zinc and copper make up, for example, and we process 80 to 90 test certificates a week, totaling over 4,000 annually. As various products may be covered by one certificate and, as we have to keep this information for up to 7 years, we were storing thousands of pieces of paper which made it difficult and time consuming to retrieve information when details had to be checked for customers.”

Prior to starting the EDM project, Duggan Steel wanted to install a new company wide bar coding system so that steel received on site could be assigned a unique bale number and then all documentation linked to it. Mr Flavin explains that “When steel arrives from say China, it has a supplier number on it which is logged onto our Sea Change ERP system listing the product and tonnage, and a bale ID and barcode are produced. The initial batch may have an ID of say 50,000/1 and then every product produced from it is given a sequential number, so 50,000/2, 50,000/3 and so on. With a barcode stuck to each item, this allows us to trace back to the original piece of steel, the supplier and the test certificate when required.”

Mr James Flavin of Duggan Steel’s group IT manager said that “Steel is bought from all over Europe, India and south west China, and based on our 30 year plus experience in the steel business coupled with thorough forecasting, we ensure that the right stock is always available to customers at the right time. This means we can provide a JIT like service, normally delivering anywhere in Ireland within 24 hours of an order which few competitors can achieve.”

Japanese firms invited to bid for Sri Lankan port project

SeatradeAsia Online reported that the Sri Lanka Ports Authority has called for bids to build a new JPY 14.5 billion (USD 134.3 million) port in southern Galle, next to the existing harbor.

The report added that bidding for the project, funded by an Official Development Assistance loan from the Japan Bank for International Cooperation is only open to Japanese firms and will be opened on July 3rd 2008.

The project aims to expand the current port's capacity to meet future demand with a new breakwater, harbor basin with a deeper draft and multi purpose terminal to handle bigger vessels.

Sri Lanka Ports Authority officials said that the aim is to develop Galle to handle conventional cargo that is currently handled in Colombo port as well as cargo for the local industries in the southern region. The main commodity handled by the existing Galle harbor is cement.

Japan rebar export price hits USD 1,000 per tonne

JMB reported that Japanese concrete reinforcing steel bar export price exceeded USD 1,000 per tonne. As per report Japanese makers receive strong order from South Korea, Taiwan, Southeastern Asia, North America and Middle East and the price increased to USD 1,028 FOB for USA for August shipment.

The international market is lifted by aggressive appetite from construction booming Middle East. The billet export market is also expected to rebound after temporally drop from peak of USD 1,074 for July to August shipment.

Krakatau Steel returns to profit

Reuters reported that Indonesia's state owned steel maker, PT Krakatau Steel, returned to profit last year on the back of stronger sales revenue.

Krakatau Steel, which is in the middle of a privatization process, reported a net profit of IDR 313.81 billion (USD 34.07 million) in 2007, as compared to a IDR 135.40 billion loss a year earlier. Sales revenue climbed by 22.8% to IDR 14.84 trillion, while operating profit was IDR 793.10 billion in 2007 as compared to a IDR 216.64 billion loss in 2006.

Mr Taufiequrrahman chairman of Krakatau told Reuters that the firm, which had total assets of IDR 11.12 trillion as of last year, was likely to launch an initial public share offering in November or December.

Samchai Steel to boost output as demand rises – Krungthep

Krungthep Turakij citing Mr Pachawat Kunchayangkul chairman of Samchai Steel reported that Samchai Steel Industries Pcl will increase production by 18% to meet higher demand.

The newspaper said that the company will increase its production to 200,000 tonnes a year from the current 170,000 tonnes as demand for construction materials rises.

POSCO asks SK Group to join buyout of DSME

Seatrade Asia online reported that South Korea's steel giant POSCO has approached SK Group with a proposal for joint acquisition of part of Daewoo Shipbuilding & Marine Engineering shares.

According to a local media report, POSCO had been seen to go it alone in bidding for the DSME shares held by two South Korean state run banks. The steelmaker is now looking for a possible partner, as the planned buyout would require an enormous amount of money.

According to the report, POSCO has informally proposed that it and SK jointly acquire around 10% of the DSME shares held by the two banks (equivalent to 5% of the total outstanding shares). The two companies now appear to be engaged in working-level consultations.

POSCO and SK have close mutual relations, engaging in cross-holding of shares. POSCO has apparently named SK as the latter's affiliates SK Shipping and SK Energy can generate synergetic effects with DSME.

For potential bidders, the biggest problem is how to raise a huge buyout fund that could total up to 10 trillion won.

Daewoo Shipbuilding secures USD 2.3 billion orders in June

AP reported that Daewoo Shipbuilding & Marine Engineering Co has won USD 2.3 billion of orders in June, its biggest month this year as demand increased for moving fuel and commodities.

Daewoo Shipbuilding in a statement said that contracts were received for 12 vessels in the month and buyers ordered nine Very Large Crude Carriers, the biggest of their type, a deepwater drill ship and two bulk carriers for 2012 delivery Yards in South Korea.

According to London-based shipbroker Clarkson Plc more than half of the global ship orders by tonnage were won by South Korean yards in the first five months of this year.

CSN to invest USD 6 billion in new plant in Pernambuco

BNamericas reported that Brazilian steelmaker CSN is planning to invest USD 6 billion in a long and flat products plant in the northeastern state of Pernambuco.

The report said that the new facility, targeting the construction industry is to be built on a 337 hectare site next to the Atlantico Sul shipyards, in the Suape port industrial complex 57kilomater from state capital Recife.

According to Pernambuco's website, the announcement was made June 26 by governor Eduardo Campos and CSN's executive director Eneas Diniz Garcia.

The plant, to be called Usina Siderurgica de Pernambuco is to be constructed in three phases and should reach full capacity in 2014. Initial output is estimated at 500,000 tonne per year but two expansion projects could push production to 3.5 million tonne per year.

The first phase of the project should be completed in four years and is budgeted at USD 1.3 billion. The state government says 1,150 workers will be employed during the peak of construction.

POSCO to buy 10% stake in Australian coal mining firm

It is reported that POSCO has agreed to buy a 10% stake in Australian firm Macarthur Coal Ltd for KRW 420 billion (USD 402 million), in a bid to secure a stable supply of the material used as fuel.

POSCO in a statement said that it has agreed to pay AUD 20 per share to Macarthur's former director Mr Ken Talbot for the stake purchase and the deal is expected to be approved by its board of directors in July 2008.

POSCO currently has stakes in six coal mines and two iron ore mines in Australia.

Italy flat prices keep rising in June

It is reported that Italy’s flat market has kept firm and the price in June continued to rise. But the price rise is mainly due to reduced offers, and the requirements have not changed a lot.

It is expected some stockist will start purchasing in September to October and the price will up further at that time.

It is reported that products in July and August, by Europe’s main manufacturers, including those in Italy, have already been sold out. Now the production line is arranged for September to October delivery and imported prices are not competitive enough at present.

France scrap export raises in 2007

According to the related statistics, France exported 6.15 million tonnes of scrap in 2007, increased slightly by 13,000 tonnes or 0.2% YoY as compared to that of 2006.

Among those scrap exports 1.76 million tonnes of scrap is exported to Spain down by 7.5% YoY. Belgium exported 1.731 million tonnes up by 9.1% YoY. In addition, Italy decreased its intake by 3.5% YoY to 1.208 million tonnes.

(Sourced from YIEH.com)



RAW

Danieli to build new meltshop for Unisteel

It is reported that United Steel Industrial Company has selected Danieli for the supply on a complete turnkey basis of a new steel meltshop to be installed in the Shuaiba Industrial Area of Kuwait.

The new plant will produce about 780,000 tonnes per annum of commercial steel billets to feed an existing rolling mill approximately 500,000 tonnes per annum of rebars and the balance will be supplied to the market.

The new plant will be basically made up of a 120 tonnes, 6.5 meters shell diameters FastArc EAF provided with HiREG Plus and Danarc Modules technology, 120 tonnes inert roof ladle furnace refining station, five strand, 9 meters radius FastCast conticaster to produce square billets from 130 to 150mm, material handling system and fume treatment plant serving both EAF and LF and all the auxiliary equipment and facilities.

Danieli Automation will supply the complete electrical and L1 and L2 automation and process control packages. All auxiliary plants and systems, 132/33/20 kV outdoor Substation, warehouse, workshop, laboratories and ancillary buildings are also included into the Danieli scope of works.

The complete turnkey supply also includes all civil works, building steel structures, internal infrastructures, roads and paved areas, storm water drainage and sewerage networks, yard lighting, perimeter fencing and gates, erection and supervision activities. These activities will be carries out by Danieli Construction International.

Iran achieves indigenization of steel industry

Mr Ahmad Ali Harati Nik deputy industry minister of Iran announced that Iranian steel industry has become indigenized.

He said that “Today, we can say that Iran has tamed steel production technology and that we are capable of designing, producing, equipping and utilizing a major steel project. We are capable of constructing 800,000 tonne steel production units and we have currently added this capacity to 1 million tonnes.”

He also noted that in the first quarter of the Iranian calendar year, starting on March 20th 2008, steel, aluminum, alumina, concentrates and banded iron formations, coal concentrates, and cement productions have respectively increased by 9, 23%, 11%, 24%, 15% and 10%.

Mr Harati Nik who is also the chairman of Iranian Mines & Mining Industries Development & Renovation Organization executive board elsewhere noted that this organization plans to launch 36 projects through investing over USD 6 billion. He said that “Three projects have been inaugurated up to this date and 7 more are ready to be launched.”

(Sourced from Tehran Times Economic Desk)

IranConMin 2008 kicks off in Tehran

Mehr News Agency reported that the 8th International Trade Fair for machinery, plant, processes, materials for construction industry, building materials and natural stone industry, coal and ore mining kicks off in Tehran Permanent International Fairgrounds.

The fair aims to introduce and showcase the latest approaches and achievements of 246 domestic and foreign companies mostly form Spain, Ukraine, the United Arab Emirates, Italy, Germany, Turkey, China, Russia, Japan, Sweden, South Korea, and Greece in 19,000 square meters of area.

IranConMin focuses especially on the Iranian and neighboring markets for building, construction material machines, mining and natural stones.

The expo will run till July 2nd 2008.

KPT unveils rail and port connectivity plans

Daily Times reported that Karachi Port Trust has unveiled plans regarding rail connectivity with the port and cargo yards.

Ms Nasreen Haque chairperson of KPT said that as a first step the railway track dismantled connecting TPX and Groyne Yard would be restored. She added that railway line would also be extended to the coal stacking area near Groyne Yard for direct loading from there.

She emphasized the importance of advance planning by railways in line with the KPT plans for development of their infrastructure and rolling stock enabling proper logistics to cater for the present and future traffic.

Sindh has rights over its own coal in Pakistan

Daily Times quoted Mr Qaim Ali Shah chief minister of Sindh as saying that the federal government has finally accepted the constitutional right of the province to its natural resources and coal has been admitted as a provincial subject.

Mr Shah said that the present government has assigned a high priority to the Thar coal reserves. The previous government did nothing but sign failed MoUs. He said that many foreign companies had made offers for the development of Thar coal and coal based power plants in Thar and Keti Bandar.

Provincial information minister Mr Shazia Marri said that the Opposition should appreciate the efforts made by the chief minister to acquire the province’s right from the federal government. He said that coal reserves in the Thar Coalfield were very important for the province, as well as the country, as according to an estimate they are worth 60,000 billion US dollars.

Saudi plans water and power projects worth USD 12 billion

Gulf News reported that Saudi Arabia has planned more than USD 12 billion worth of water and power projects that will supply an additional 2.24 million cubic meters of water per day and 2,750 MW of power in the next few years.

Mr Fehied Al Sharif governor of Saudi's Saline Water Conversion Corporation and chairman of the Privatization & Restructuring Team said that Saudi is also set to privatize key government owned assets and expects the total capital and operation investments value of desalination privatization projects to hit USD 43 billion over the next 20 years. He added that "The government has decided to privatize key government owned assets under the guidance of the Supreme Economic Council. The water, wastewater and water desalination sectors have been put on top of the list."

Mr Al Sharif said that the projects will boost the water and power supply in the country, which will need 8.3 million cubic meters of fresh water per day and 70,000 MW of power capacity by 2024. So far, at least four independent water & power projects have been approved by the Supreme Economic Council.

Trump may join Nakheel to build tallest building in world

Arabian Business reported that the race to build the world's tallest skyscraper just became a little more interesting. Trump Organization, one of America's biggest real estate developers, may join forces with Nakheel to build the world's tallest building in Dubai.

Trump Organization has expressed an interest in extending its partnership with Nakheel to build the world‘s tallest building, The Burj Dubai, overseen by Dubai master developer Emaar, currently holds the world record, at around 1600 meters and growing.

The Burj Dubai, the centerpiece of a 500 acre development downtown, had long surpassed the Taipei 101 skyscraper in Taiwan as the tallest structure in the world. Construction competition in the Middle East is likened to the skyscraper building frenzy in 1920s New York City. And industry insiders say it's only appropriate that Donald Trump, who embodies massive development in that city, be a participant.

Sindh ear marks PKR 3.41 billion for new mining projects

Daily Times reported that Sindh government has allocated PKR 3.41 billion for various ongoing and new mining projects in its annual development program for the next 2008-09 fiscal.

The provincial government has approved PKR 3.198 billion to initiate 3 new schemes to be carried out under directorate of mines and minerals. The scheme includes establishment of small scale mining practice mechanism with the allocation of PKR 2.5 billion.

The major issues related to small mining operations are regularization, environmental management, financial arrangements and taxation, technical assistance for mine development, training needs, occupational health and safety.

The provincial government earmarked PKR 600 million to establish training institute specifically in the field of mechanizing mining and coal based power generation with the collaboration of foreign institutions. The mines and mineral department will spend PKR 98.85 million on the account of ‘Benazir Training Program’ for the training of young graduates in this field.

Sindh government also allocated PKR 212 million upon the various under proceeding schemes of mining sector for the next fiscal year. This budget allocation will be spent on around eight development projects being carried out in different parts of the province.

The projects include exploration and evaluation of dimension and cut stone deposits in Thatta, Jamshoro or Dadu, feasibility report on granite deposit in district Thar, e government agency specific general application website on geo-data phase, establishment of rescue station in Tharparkar, establishment of safety equipment warehouse at Lakhara, environmental impact assessment due to mining activities in Sindh; establishment of mining polytrate training institute at Lakhara, establishment of rescue station and dieses detection centre at Lakhra.

ArcelorMittal enhances its distribution activities in UAE

ArcelorMittal announced that it intends to acquire 60% of the entire issued share capital of DSTC FZCO, a newly incorporated company located in the Dubai free zone.

Together with DSTC FZCO, ArcelorMittal is widening its offering in the Middle Eastern area. DSTC FZCO will acquire the main business of a steel distributor in the United Arab Emirates, Dubai Steel Trading Company LLC.

This new acquisition is the first step towards the creation of a fully fledged distribution network in the Gulf Cooperation Council area for the distribution of long and flat steel products like beams, plates, hollow sections.

Mr Philippe Darmayan CEO of ArcelorMittal Steel Solutions & Services said that “This is an important partnership that will spearhead our distribution network in the Middle East Area.”

ArcelorMittal enhances its distribution activities in United Arab Emirates

ArcelorMittal announced that it intends to acquire 60% of the entire issued share capital of DSTC FZCO, a newly incorporated company located in the Dubai free zone.

DSTC LLC is a Dubai-based privately owned entity, founded in 1986, which currently employs 50 personnel. It sells principally to the construction market, which represents more than 50% of its activity. DSTC LLC's distributes approximately 120,000 tonnes of products per year. In 2007 its revenues were about EUR 70 million.

The release said that “Together with DSTC FZCO, ArcelorMittal is widening its offering in the Middle Eastern area. DSTC FZCO will acquire the main business of a steel distributor in the United Arab Emirates, Dubai Steel Trading Company LLC.”

This new acquisition is the first step towards the creation of a fully-fledged distribution network in the Gulf Cooperation Council area for the distribution of long and flat steel products including beams, plates, hollow sections.

Mr Philippe Darmayan CEO of ArcelorMittal Steel Solutions & Services said that “This is an important partnership that will spearhead our distribution network in the Middle East Area.”

PSM appoints Mr Sheikh as new chairman

Pakistan Steel Mills Corporation recently announced that it has appointed Mr Mueen Aftab Sheikh as its new chairman.

Mr Sheikh has served as a BS 22 officer in Pakistan Audit & Account Service and has also worked at various other important positions.

Aramco awards Manifa pipeline deal to Valentine Maritime

MEED reported that Saudi Aramco has awarded a contract worth up to USD 500 million for pipeline and power cable equipment to UAE's Valentine Maritime as part of a series of major contracts on its 900,000 barrel a day Manifa oil field development.

The report said that Valentine Maritime beat competition from 5 other bidders, including Jebel Ali based J Ray McDermott, National Petroleum Construction Company, South Korea's Hyundai Heavy Industries, Italy's Saipem and Global al Rushaid.

The contract involves laying up to 300 kilometers of onshore pipeline, as well as power cables and associated equipment. It is a significant win for Valentine. Its Saudi subsidiary is expected to carry out the 14 month engineering, procurement an