India removes AD duty on billets from China and Russia

Directorate General of Anti Dumping & Allied Duties of Department of Commerce of ministry of Commerce & Industry of government of India vide notification dated May 1st 2008 has announced termination of sunset review of anti dumping duty imposed against imports of certain grades alloy and non alloy steels billets, bars and rounds from Russia and China and recommended that the anti dumping duties need not be extended further.

Therefore, the Authority hereby terminates the investigation initiated vide notification No.15/6/2008-DGAD dated 23rd January 2008, all proceedings connected with this case and recommends that the anti dumping duties need not be extended further.

It said that the investigation into alleged dumping and injury was initiated based upon the directions of the High Court on January 23rd 2008 and the domestic industry has not come up, within the stipulated period of 40 days, with a documented petition to assess whether there is sufficient evidence of dumping and injury. In the instant case, since there is no information on record to establish that the cessation of the present duty is likely to lead to continuation or recurrence of dumping and injury, the designated authority does not consider it appropriate to recommend extension of the anti dumping duties earlier imposed.

Kalyani Steels Ltd. filed a civil writ petition in Hon’ble High Court of Delhi as Writ Petition (Civil) No.15945/06 and as per direction of the Hon’ble Court vide judgment dated 3.12.2007, Sunset Review was required to be conducted in accordance with the procedure laid down in Rule 23 of the Rules.

The Hon’ble Court held that all imports of the subject goods made from Russia and China with effect from February 1st 2008 should be provisionally cleared by the central government and in the meanwhile, the central government should carry out a review to determine whether the anti dumping duty imposed by the Notification dated June 25th 2001 should continue beyond the period of five years from December 26th 2005 onwards.

Product under review are certain types and grades of alloy and non alloy steel billets, bars and rounds having 70 mm to 250 mm diameter conforming to IS specification or any other international specification equivalent to IS standards.

Government policies may hamper investments in steel - Mr Jindal

Mr Sajjan Jindal vice CMD of JSW Steel, after taking over as president of ASSCHAM, said that India runs the risk of losing USD 100 billion investment in steel if the government persists with restrictions like export duty.

He said that "We are talking about USD 100 billion over the next 5 to 6 years to be invested in the steel industry. Now if the government of India levies duties on exports, all these investments will not come."

Mr Jindal said that imposition of up to 15% export duty on steel may bring apprehensions in the mind of global investors who have announced their mega plans for India. He added that "One has to talk to POSCO and ArcelorMittal and ask if there is an export duty and restrictions, will they still be investing."

He said that as of now, both domestic and foreign steel players have signed 193 MoUs with states for setting up new units with a total planned capacity of around 243 million tonnes and a total proposed investment of over INR 514,000 crore. He added that "While the ASSOCHAM would try and convince the investors about the temporary nature of the measures arising out of 45 month high inflation, "investors fear that even if the government withdraws the duty today, what is the guarantee that tomorrow it will not put it at 50%."

Mr Jindal said that rise in raw material prices, strong demand in international and domestic markets are some of reasons for the sharp increase in rates. If the fears expressed by ASSOCHAM come true, the ambitious targets of 290 million tonne capacity by 2020 will be difficult to achieve.

POSCO hopes for a miracle for Orissa project

BL reported that, when POSCO signed an agreement with the Orissa government in June 2005 for a 12 million tonne integrated steel plant, its officials were hopeful of commissioning 3 million tonnes in the first phase, between 2007 and 2010. But a message from Mr Soung sik Cho CMD of POSCO India, published in the May 2008, shows how the company has been waiting for various clearances for 3 years after inking the MoU.

Mr Cho said that "May is a month which tests our endurance. It signifies a long wait, amidst soaring temperature and sweltering heat, for the cool rains and lovely smell of wet earth. For our project also, this month is going to be one of patience, perseverance and enduring hope."

In his message, Mr Cho refers to the company’s wait for the state government’s re recommendation of its case to the centre for grant of prospecting license for iron ore mines, diversion of forest land for the steel plant site, clearance for water supply pipeline and acceptance of the benefits of the project by all the people in the proposed site area. He added that "Though it is a difficult month for us, I advise the prudent use of time for polishing future plans and systemization of all current process."

Out of the 4,004 acres required by POSCO for the steel plant, forest diversion clearance was required for 3,097 acres. State government has not been able to hand over any land to the company so far primarily due to opposition from the local people.

Permionics bags INR 25.89 crore order from RINL

Permionics Membranes Private Limited has bagged an order worth INR 25.89 crore from Rashtriya Ispat Nigam Limited sewage treatment plant & associated reverse osmosis membranes system to produce recycle water quality at its Vizag Steel Plant.

Mr Satyajai Mayor director of Permionics Membranes said that ''Permionicns is a leader in the membranes segment with a strong presence in India and abroad this gives us the unique advantage of combining our expertise. This project is the fifth order to be executed by us on a turnkey basis and is scheduled to be commissioned by September 2009.”

Mr Mayor said that in April 2008, Permionics had bagged its first order worth INR 36.75 crore to supply waste water treatment & recycling plant for the Vizag Steel Plant. This repeat order is a testimonial to Permionics' commitment to quality and innovation.

Permionics has recently supplied reverse osmosis membranes system at Barmer in Rajasthan for Cairn India's offshore oil field through Larsen & Toubro Limited's ECC division.

Mr RS Pandey to receive UN Public Service Award

A program for communizing Public Institutions & Services in Nagaland that was conceptualized by senior Indian Administrative Services officer Mr RS Pandey has been selected for the UN Public Service Awards 2008. The award would be presented on June 23rd 2008 in New York on the occasion of UN Public Service Day.

Mr Pandey will be accompanied by the chief secretary of Nagaland and another representative of the Nagaland government to the award ceremony. The delegation will also make a presentation on the program in the United Nations headquarters.

Mr Pandey, now serving as union steel secretary, would receive the award for the program that he designed and implemented when he was Chief Secretary of Nagaland during 2002-04. The program is aimed at communizing public institutions and services in Nagaland and has significantly improved the northeastern state’s elementary education, public health and power utilities.

Mr Pandey said that "This is a tribute to the genius of Naga people whose rich social capital was harnessed to improve the critical basic services in the state. I am overwhelmed with the recognition awarded at the global level. I am sure this will help in spreading the program within the country and abroad."

This year 12 winners from different parts of the world have been awarded with the most prestigious recognition for excellence in the public services. This communization program is the lone winner from India this year.

Gujarat plans incentives for shipbuilding to boost industry

BL reported that Gujarat government has made provisions in the new industrial policy to boost shipbuilding and ship repair industry in the state. As per report the state government is planning to offer special incentives for the sector with a vision to augment and enhance efficiency in ports related services and make Gujarat a logistic hub.

The government task force has made recommendations to offer capital and interest subsidies for shipbuilding industry in the state and also offering land at concessional prices.

Reimbursement of stamp duty and 5% interest subsidy for 5 years is also on the cards. The task force has recommended a greater focus on customer's needs, support door to door inter modal transport, stimulate mode shift, increase efficiency apart from innovativeness and exploitation of technology and utilization of newest information and communication technology

A senior government official said that "Shipbuilding is a very high risk and high cost industry. So the government is mulling capital subsidy." According to him special provisions will be made for capacity building in ship building and institutes and training centers will be encouraged by giving concessional land.

While the state government is on its way to develop 10 ports, it is essential to make its ancillary services at par with the international standards. Gujarat has been emerging as a major shipbuilding destination. At the global investors' summit last year, logistics and shipping companies in the port sector had signed MoUs worth INR 13,500 crore. The state, which aims to account for 50% of the nation's shipbuilding activity, has decided to come up with a shipbuilding policy.

Road transporters to go on strike from July 1st 2008 on service tax

Exim News Service reported that, besides the staggering 10% hike in diesel and petrol prices, the truck owners face the dismal prospect of shelling out a higher service tax and to oppose the service tax hike, truckers have warned of an indefinite strike from July 1st 2008 unless the finance ministry rescinds the proposal.

Mr Deepak Sachdeva president of Delhi Goods Transport United Front said that "We are planning to go on an indefinite strike from July 1st 2008 and have given notice to the government and informed our member associations. The service tax department has served recovery notices on truckers, raising tax incidence from 3.09% to 12.5% which is not acceptable."

He said that All India Motor Transport Congress, to which his association is affiliated, would now decide the course of action to be taken. He added that already AIMTC has hiked the road freight rates by a hefty 15% to 20%.

APTEL denies captive status to TATA Steel power plant

ET reported that Appellate Tribunal for Electricity Bench has dismissed a petition filed by steel major TATA Steel challenging an order of Jharkhand's electricity regulator JSERC turning down the company's request to grant status of captive power plant to its two power generating units.

TATA Steel, having 3 power generating units at Jojobera, had sought status of captive power unit for its two later plants of 240 MW that have come up in the same area. However, the tribunal rejected it be saying that as per the Electricity Rules, 2005 a power plant could qualify as captive power plant only if more than 26% ownership is held by the captive user and more than 50% of the production is consumed by it.

As per report, APTEL, headed by Justice Ms Manju Goel, observed that TATA Steel failed to prove that its two units were sole captive units of the company and consumed more than 50% power produced by it. She said that "We have found that on facts TATA Steel failed to establish that units were captive generating units of TATA Steel nor can it be said that the two units are captive units for steel works of the TATA Steel."

The APTEL bench said that "The appellant claim that the entire generation of the two units are consumed by them in the steel plant. But TATA Steel does no hold 26% share in JAPCOL or TPCL or in the two units in the question."

The tribunal further observed that although JAPCOL was owned by TPCL but TSL do not have any share in that. The company claimed before the tribunal that electricity produced by the two plants were primarily and essentially used for the activities associated with manufacture of steel at TATA Steel and to supply in the residential colonies of the plant.

Earlier also Jharkhand State Electric Regulatory Commission had rejected TATA Steel's application on the same ground that the two power plants did not fulfill the criteria of captive power plant under the Electricity Act, 2003.

Gontermann Peipers 2007-08 turnover up by 18% YoY

It is reported that the board of directors of Gontermann Peipers India Limited has recommended a dividend of 15% on equity shares and 6% on cumulative preference shares of the company for the fiscal 2007-08.

It recorded a turnover of INR 173.99 crore in 2007-08, up by 18% YoY as against INR 147.74 crore in 2006-07. The profit before tax in 2007-08 stood at INR 24.03 crore as against INR 20.26 crore in 2006-07. The profit after tax in 2007-08 was INR 15.11 crore up by 24% YoY as against INR 12.21 crore recorded in 2006-07.

Gontermann Peipers is engaged in the manufacture of high precision rolls for hot rolling mills, cold rolling mills and the capital goods industry.

HEG Limited unveils INR 190 crore CAPEX plan

HEG Limited recently announced that its board has approved expansion of capacity from current level of 60,000 tonnes per annum to 80,000 tonnes per annum at estimated investment of INR 190 crore at its graphite plant at Mandideep.

With this expansion, HEG Limited will become as the world’s largest graphite electrode producer at a single location.

The capacity expansion will be done by way of Brownfield expansions and de bottlenecking of the existing capacities with an estimated cost of INR 190 crore which is 40% less than the expansion undertaken 2 years ago. The new capacity will be operational by the last quarter of 2009.

It is also focusing on high-grade value added ultra high power products. It recorded a turnover of INR 650 crore in 2007.

Kalyani Steels board recommends 40% dividend

The board of directors of Kalyani Steels at its meeting held on June 6th 2008 has recommended 40% dividend on the equity share capital of INR 4 a share, subject to approval of the shareholders.

Kalyani Steel is a leading manufacturer of forging and engineering quality carbon and alloy steels. Part of the INR 80 billion Kalyani group, which has diverse business interests in engineering steel, forgings, auto components, non conventional energy and specialty chemicals, the company was incorporated on February 28th 1973.

UGSL sees 40% output increase in next 2 years

It is reported that Uttam Galva Steels Limited expects a 30% to 40% annual rise in steel output over the next 2 years on increased production capacity.

Uttam Galva is targeting sales of 700,000 tonnes in 2008-09 fiscal, from 500,000 tonnes in 2007-08 fiscal.

It has invested nearly INR 10 billion to double capacity.

Road freight rate inevitable - TCI

Exim News Service reported that, reacting to the fuel price hike, Mr Vineet Agarwal ED of Transport Corporation of India said that the hike of INR 3 in diesel price will have an impact on the freight cost.

He said that "Fuel constitutes 50% to 60% of the total cost therefore, this time it will be difficult for logistics companies to absorb the hike. The cumulative increase of INR 4 translates into a 5% increase in freight rates."

Mr Agarwal said that "However, due to seasonal low demand, as of now, the freight rates will witness an increase of 3% to 4%. As 70% to 75% of our customers operate on a contractual basis, the hike will be passed on to them immediately unlike retail clients, who are likely to feel the pinch only after one or two months."

He further added that "We do not expect any fall in overall demand due to existence of alternative modes such as rail freight, which has not witnessed any hike. However, the shift to rail freight will be marginal due to the absence of last mile connectivity as in the case of road freight."

HSL launches tug for New Mangalore port

BL reported that a 32 tonne bollard pull tug, mt Iswari, constructed at the Hindustan Shipyard Limited for the New Mangalore Port Trust, was launched recently by Ms Juliet Tewari wife of Rear Admiral Ajit Tewari CMD of HSL.

The tug, costing roughly INR 25 crore, was built at HSL by Lodka Engineering Private Limited on a turnkey basis. The tug has an overall length of 33.50 meters, width of 10 meters and depth of 4.20 meters, with a draft of 5.30 meters and speed of 11 knots. It is manned by two officers and 10 crew members.

Rear Admiral Tewari said that the HSL had made impressive strides during the past 3 to 4 years and it is matter of great pleasure for me that during my tenure vessels had been launched from all the 3 slipways at the shipyard after more than a decade. He congratulated all the departments and the unions for their cooperation in building the vessel.

He added that HSL had orders worth INR 2,000 crore on hand and all attempts were being made to deliver vessels on schedule. In 2007-08 fiscal, HSL achieved a turnover of INR 400 crore and during the current financial year it was aiming to cross the INR 500 crore mark.

Indian government approves Kolkata metro extension

Exim News Service reported that union cabinet has given its approval for the implementation of the East West Metro Corridor project in Kolkata covering a length of 13.77 kilometers on standard gauge. The cabinet also gave its approval for the constitution of a special purpose vehicle, high power committee, empowered committee, empowered group of ministers and the legal framework for the corridor project.

The project begins at Howrah Station to the Salt Lake Sector V involving a cost of INR 4,676 crore and is to be executed through a JV company that is to be formed by the union government and the state government.

The SPV will be constituted for successful execution of the project as well as its operation and maintenance. Such an SPV will be a JV of the government of West Bengal and the Union government. Equity participation of the Bengal government and the union government will be on 50:50 basis.

The objective of the project is to provide the much needed additional transport infrastructure to Kolkata. The project will be completed in six and half years in 2 stages, the first stage of 5.77 kilometers elevated section to be commissioned in five and half years.

Maruti Suzuki emerges as fourth most reputed auto carmaker

PTI reported that Maruti Suzuki has emerged as the fourth most reputed among auto companies in the world, even ahead of its parent Suzuki Motor Company of Japan.

According to the "Global 200: The World's Best Corporate Reputations" list, compiled by US based Reputation Institute, Maruti Suzuki India is fourth amongst the automakers list, headed by Toyota. With a 'Global Pulse' score of 74.38, Maruti Suzuki leaves behind its parent Suzuki Motor Company, which scored 70.44 and came 8th amongst the automobile manufacturers.

In the overall best corporate reputed rankings, Maruti Suzuki occupied the 77th position, while Suzuki Motor Company is ranked 139.

Remarkably, Maruti Suzuki also leaves behind other renowned global auto brands. Only Toyota, Honda and China FAW Group Corporation are ahead of it. In the overall reputed rankings, Honda is in 39th position and China FAW Group Corporation occupies the 41st position. Germany's BMW emerged 5th best amongst auto companies and 88th overall with a score of 73.90. Daimler AG was 6th and 99th overall with a score of 72.85. France's Puegeot emerged 7th best among the auto companies and 110th overall with a score of 72.32. The 9th position amongst the auto companies is taken by Renault of France with a score of 70.26, an overall reputed rank of 142. Volkswagen of Germany was the 10th most reputed amongst the vehicle manufacturers and 162nd overall with a score of 69.64.

No SPV for Bangalore Metro Rail project - Planning Commission

The Planning Commission has decided that the Bangalore Metro Rail Corporation should finance the project with grants from the government instead of going through the 50:50 equity model that involved setting up a special purpose vehicle for the funds.

The project, estimated to cost INR 6,395 crore, has a debt equity ratio of 70:30. As per the current funding model, the centre and the Karnataka government are to contribute 15% each to the equity portion. For the debt portion, 45% will be taken care of by the BMRC in the form of borrowing from the Japanese Bank for International Cooperation and the remaining 25% will be raised through subordinate debts. The JBIC is providing the loan at an interest rate of 8.75% per annum.

According to the MoU signed with JBIC, the Japanese bank will give a loan of INR 1,795 crore for the project under a special rate of interest. While the bank charges an interest rate of mere 1.3% per annum the project will have to bear a rate of 3.6%.

The proposed metro project envisages a 33 kilometers elevated and underground rail network with 32 stations in the first phase. The proposed gauge will be standard gauge, unlike the broad gauge in the Delhi Metro network. The BMRC, executors of the project, has the Delhi metro as its consultant.

Construction work, which was scheduled to start in 2005, was delayed due to change in the coalition government in the state and continuous debate over the feasibility of the project.

Charkop Bandra Mankhurd Metro Rail to be taken on PPP basis

It is reported that Mumbai Metropolitan Region Development Authority's Charkop Bandra Mankhurd Metro Rail project will be implemented on a public private partnership basis.

Earlier, the government had planned to develop the remaining metro lines on its own. The first corridor linking the eastern suburb of Ghatkopar to western Versova is already under construction and is being built by the Mumbai Metro One on the PPP model.

The Mumbai Metro One was formed by a consortium led by Reliance Energy Limited.

NHPC may sign pact with J&K for power projects

BS reported that National Hydroelectric Power Corporation Limited is likely to sign an agreement with Jammu & Kashmir Power Development Corporation for harnessing 2,100 MW of power from Chenab basin in the state at an estimated cost of INR 15,000 crore.

As per report, NHPC and J&K Power Development Corporation are negotiating a MoU for setting up power projects with capacity to generate 2,100 MW power in Chenab basin in the state.

Mr Jairam Ramesh union minister of state for power said that the draft for the MoU has been prepared and work on the projects would be started by the proposed JV company immediately after it has been signed by the two sides. The JV would construct 3 projects in Chenab basin. He added that "I hope that the MoU will be signed by the end of June 2008."

Mr Ramesh said 1,200 MW Pakaldul power project would be the biggest among the projects to be constructed under the JV between NHPC and JKPDC. The other 2 projects are to be set up at Kiru and Kawar in Chenab basin and would have almost identical generation capacities. The total cost of the projects would be around INR 15,000 to INR 16,000 crore. Once completed, the projects would benefit J&K immensely as the State is guaranteed to get a minimum of 62% of power generated from these projects.

Villagers demand for a port along Barunai coast in Orissa

SNS reported that thousands of people gathered at the remote Koreapalli village under Rajnagar tehsil in Orissa, renewing their demand for an integrated port along the Barunai coast of the district for overall economic upliftment of the region.

Mr Prafulla Kumar Das secretary of Barunai Port Trust, while addressing the gathering, said that the natural harbor in Barunai has immense potential to become a major port.

Mr Das said that in 2004, the government had identified as many as 13 viable spots for port building and Barunai located on the confluence of the Mahanadi and the Bay of Bengal was one of them. But for some strange reason the government is looking at all other places, inviting private companies to set up ports overlooking Barunai’s claims. The spot is ideal and it does not involve any displacement whatsoever.

Keeping in view the surge in industrial activity in and around Paradip, the building up of a port in this part is the need of the hour. The people of Kendrapara are yet to reap the benefits of industrialization in the neighboring districts. There is also some sort of a regional imbalance with industry less Kendrapara sandwiched between Paradip and mineral rich Jajpur and Keonjhar districts. Thus an operational port would boost the sagging economy of the region.

Pro POSCO faction seeks divine intervention

SNS reported that, while the scuffle between the pro POSCO and anti POSCO groups have perhaps reached its all time high, the latter has reportedly resorted to divine intervention and sought the blessings of the Almighty in their fight with the opponents.

Sources said that the members of anti POSCO group has congregated at a trouble torn Govindpur village and performed puja, yagnya and other religious rituals with an apparent aim to appease the Goddess and seek courage and power to fight both the company and the project supporters.

This development took place in the wake of a reported retaliation of the project supporters and repeated attack on the anti POSCO brigade. It may be noted that around 10 anti OSCO activists have been attacked within 2 to 3 months. Besides, bombs were hurled and paddy fields and betel vines of anti POSCO group members were destroyed.

However, the anti POSCO people allege that POSCO has been instigating the supporters to attack the project opponents. They alleged that "The project supporters have been supplied with cash, vehicles, mobile phones and other things to intensify their attack on us. While earlier the project supporters preferred to leave the village without fighting with us, now the scenario can change abruptly as they have started such an offensive act against us."

Tuticorin Port unveils INR 5,200 crore CAPEX plan

BS reported that Tuticorin Port Trust is planning to invest INR 5,200 crore to create additional capacity and infrastructure. The port had recently received in principle approval from Indian government for two major projects involving the inner harbor and outer harbor. The projects, which will be executed through the public private partnership mode, are expected to be completed by 2012.

According to a senior TPT official, INR 4,350 crore would be spent on the outer harbor development project, which would include 2 or 3 container terminals, 1 oil terminal, 2 coal terminals and a general cargo terminal. This part of the project would be executed in the PPP mode.

The inner harbor project, which will cost INR 936 crore, will involve building of a coal berth and a general berth and deepening of the draft from 10.7 meters to 12.8 meters to allow higher capacity ships at the east cost port in Tamil Nadu. Of the total investment in the inner harbor, a major portion will be towards dredging, which is estimated to cost INR 538 crore. Of this, INR 350 crore will be funded by the port through its internal fund and the centre will bear the balance. Dredging work is likely to be completed in 18 months.

With this expansion in place, the capacity of the port would double from the existing 20.55 million tonne to 40.60 million tonne of cargo. Once dredging is completed, the port will be able to handle fourth generation container vessels with a capacity of 3,000 TEUs to 4,000 TEUs. Currently, the port can handle container vessels up to 2,000 TEUs capacity.

The port will also be able to accommodate vessels with a capacity of 70,000 DWT from the current 50,000 DWT. The increase in capacity will also reduce per tonne cost by 10% to 15% for a shipper. The expansion project would create an additional capacity of 40 million tonnes by the end of 2012 and an additional four million tonnes would be added by 2017.

Tuticorin Port handled 21.48 million tonnes of cargo during 2006-07, up by 14% YoY over 2005-06 when the port handled 18.70 million tonnes. While the traffic volume for 2007-08 is yet to be tabulated, the target for 2008-09 is set at 24.06 million tonnes.

CIL may bring IPO before Navratna status

BS reported that the proposed initial public offer of Navratna aspirant Coal India Limited is back on track after a nudge from the finance ministry's department of disinvestment.

Mr Santosh Bagrodia union coal minister confirmed that the finance ministry had asked for some details about the company. He said that "We have in turn asked CIL for information."

CIL had mooted an IPO two years back but decided to focus on a public float only after getting the Navratna status, which would grant the company financial and managerial autonomy and hence better valuation. However, since the present policy does not envisage disinvestment by the government in a Navratna company, the finance ministry's proposal seems to be aimed at ensuring the IPO precedes the Navratna status.

The IPO of CIL is likely to include a divestment of the government's stake in addition to a fresh issue of shares, though the objective is not to raise funds.

Mr PS Bhattacharya chairman of CIL said that "We do not need funds at all. We are not eyeing the IPO for raising funds. Most of our funding is done through internal resources. Basically, our aim is to bring the company under the umbrella of more stringent corporate governance."

Indian Railways modifies price variation norms in contracts

Addressing the concerns of infrastructure companies undertaking various railway projects over the sharp escalation in the prices of key raw materials like steel and cement, Indian Railways has suitably modified the price variation norms in one of its tender documents released recently. The new norms would help infrastructure players overcome any unanticipated rise in the prices of steel and cement, and complete the projects in time.

According to the modified price variation clause, the reimbursement for the escalation in the prices of steel during the work on the project would be based on the prices of steel published by Steel Authority of India Limited from time to time.

Currently, the price variation clause in a tender document for steel and cement is linked to the wholesale price index published by the ministry of commerce & industry, which contractors allege is not a true reflection of the actual increase in the price.

Mr Atul Agarwal senior VP at BSBK Private Limited said that "The modified price variation clause incorporated by the North West Railway zone in one of its tender documents for the Udhampur Katra section is a welcome step. We definitely hope that these new price variation norms will be incorporated in all future projects, which will ensure timely completion of various projects."

According to industry estimates, steel and cement together constitute around 35% of the total input cost in a railway project. In the last one year, the prices of these two key raw materials have witnessed an increase of over 70 per cent, forcing the contractors to bear the extra cost.

JK Lakshmi to add 5 more RMC units

ET reported that JK Lakshmi Cement is adding 5 more ready mix concrete units as part of its expansion plans. At present, it has 10 RMCs and the addition of another 5 will be completed by the end of current fiscal with an investment of INR 100 core. The RMC units will come up around Delhi and the NCR region, including Noida and Greater Noida.

Mr Shailendra Chouksey whole time director of JK Lakshmi Cement said that "RMC is the business where the company will concentrate in the next few years as huge opportunity remains untapped."

BHEL wins INR 3,500 crore BTG contract from NTPC

ET reported that National Thermal Power Corporation and its JV subsidiary Nabinagar power plant have awarded boiler turbine generator contracts for a total of 1,750 MW units to Bharat Heavy Electricals Limited at an estimated value of INR 3,500 crore.

The total cost of setting up these units will be around INR 8,700 crore. These are for 2 different projects. The first one includes 3 units of 250 MW at an investment of INR 3,300 crore at Bongaigaon in the North East. It is being set up by NTPC. The contract awarded to BHEL is for 3 units of 250 MW boiler turbine generators, along with a coal desulphurization plant, since coal available at Bongaigaon is high in sulphur content. One needs to get rid of this sulphur before the coal is fed into the boiler. The value of the contract for BHEL is about INR 1,500 crore.

The other boiler turbine generator contract, estimated at INR 2,000 crore for BHEL will be for 4 units of 250 MW at Navinagar in Bihar’s Aurangabad district. Total cost of the project for NTPC is estimated to be around INR 5,352 crore. The Bongaigaon plant, which will be NTPC’s first power plant in the Northeastern region is expected to start generating electricity from the first 250 MW unit by the end of 2009.

The second unit is likely to be completed in 2010-11 and the third by 2011-12. The project is expected to go a long way in solving Assam’s power crisis. The power station will come up at the existing facilities of the now-defunct Bongaigaon thermal power station of the Assam State Electricity Board.

The Nabinagar power plant with a 1,000 MW capacity, will supply 90% of its power to Indian Railways, while 10% of power from this plant is earmarked for other users. NTPC holds 74% in the power plant, while Indian Railways holds 26%. The companies will invest INR 1,188 crore and INR 417 crore respectively in the company. The electricity from this plant will be utilized by Indian Railways for running electric trains in Bihar, Jharkhand, West Bengal, Chhatisgarh, Maharashtra, Gujarat and Madhya Pradesh in the eastern and western regions of India.

Mergers to face mandatory review from Competition Council

The Telegraph reported that Indian government is planning to notify the rules on mergers and acquisitions that will allow the Competition Commission of India to compulsorily scrutinize merger and acquisition bids.

Officials in the ministry of corporate affairs said that "We are waiting for the CCI to put in place staff and train people. Very soon, the notifications allowing the CCI to scrutinize such deals would be in place and takeovers and buyouts would be checked for a potential monopoly impact."

Under the law, the CCI can veto takeovers by multinationals as well as large mergers and acquisitions by Indian firms, if the watchdog felt that this can impact competition in the Indian market.

The CCI has the powers to investigate suspected cartels and order them to desist from price hikes or exercising other monopoly powers they may try to force on the market. However, till now, it lacks the manpower to launch the kind of probes that may be required in a complex economy like India’s.

Kerala to develop Beypore and Azhikkal port projects

BL reported that the proposals for the development of Beypore and Azhikkal ports in Kerala, which had suffered many hiccups and were kept aside after first mooted more than a decade ago, have got a fresh lease of life with the state cabinet approving the appointment of consultants for the projects.

As per report, the cabinet has given the go ahead for the appointment of Consulting Engineers Private Limited as the consultant for Beypore port and Deloitte India Limited for the Azhikkal port. The ports are proposed to be developed through public private partnership. Both the development proposals have seen ups and downs over the years and at one stage even developers had been identified for implementing the projects. In the case of Beypore port, a company called Mobil Peevees had commenced preliminary works before it pulled out for various reasons.

The development of Beypore port is reckoned as important for the economic development of the state, especially of the Malabar area. It is an estuarine port and currently handles 100,000 tonnes of cargo annually and its nearest competitors are Kochi and Mangalore ports. The hinterland of Beypore port comprises Kozhikode, Wayanad, Malappuarm, Kannur and Palakkad districts in the state as also major cities like Mysore, Bangalore and Coimbatore in the neighboring States. At present, the port has 2 wharves and other facilities such as storage sheds and cranes.

The Azhikkal port has been identified by the centre for developing coastal shipping under National Maritime Development Program. A detailed report on the project had earlier been prepared by ICICI Kinfra and the consultant will be required to review the report and effect suitable changes to integrate the port with NMDP. The port is to be developed in modules in a phased manner to include berths for containers, general cargo and petroleum carriers.

SAIL RSP presents scholarship to engineering students

The Hindu reported that six meritorious students belonging to backward castes were presented scholarship of INR 150,000 for their higher studies by the management of Steel Authority of India Limited’s Rourkela Steel Plant.

Mr Balbir Singh ED personnel & administration of RSP presented cheques for INR 25,000 each to Mr Bidyadhar Ekka of Karkatta village, Mr Biswadeep Ekka of Laing, Mr Sandip Lakra of Kamabahal, Mr Rabindra Kumar Lakra of Baidyanathpur, Mr Satish Franklin Tirkey of Jhirpeni and Ms Anupama Amat of Jaikuda.

These students, all from the engineering stream, have been selected by the RSP to receive scholarship of INR 100,000 each for their professional studies. The amount presented was the second installment. The first installment was presented to them in 2007.

Foreign shippers seek level playing field in Indian waters

ET reported that foreign ship owners have asked the directorate general of shipping for a level playing field and a rethink on its latest order banning overseas vessels which are over 25 years old. Indian ships are exempted from this rule. Foreign ship owners said that the stress should not be on the age of a vessel, but on its working condition.

Mr Easow Thomas deputy GM of BW Shipping said that "The ban on old ships should be a blanket ban and not targeted at foreign ships. Most of the foreign ships are chartered by Indian companies."

Mr Rajesh Tandon MD of V Ships said that "As long as ships have met the safety requirements, they should be allowed even if they are over 25 years. If not then you are preventing business."

It may be noted that, In May 2008, the directorate general of shipping had banned the sailing of cargo vessels over 25 years in Indian waters during the monsoon period because of an increase in casualties. For gas carriers, the maximum age limit is 30 years. An analysis of accidents over the last 3 years showed a significant correlation between the age of vessels and the break downs that caused casualties.

Mineral royalty hike in India on hold for 3 months

ET reported that the proposal to increase royalty rates for minerals by changing the calculation method from the specific rates to the ad valorem system based on mineral prices has been put on hold for 3 months.

An official source said that "The cabinet secretariat has told the ministry of mines to hold back its cabinet note on revision of royalty rates for 3 months. This would mean the issue would be considered in August 2008."

The decision has been taken to prevent higher royalty rates affecting the mineral prices and fuelling inflation further. The mineral prices have witnessed a sharp increase of 45% over the last few months on the wholesale price index.

While the call to delay the new royalty regime would give the government time to bring its house in order and check inflation, it would further delay higher royalty for states that are waiting for the changes.

Mangalore Port highway project to completed by March 2009

BL reported that work on National Highways Authority of India's Mangalore Port highway project in Dakshina Kannada is expected to be completed by March 2009. The total project cost of the project is estimated to be about INR 196.5 crore.

The scope of work involves conversion of 37.5 kilometers, having 3 national highways between Surathkal and BC Road Town into four lane roads.

Work on 17.3 kilometers length highway on NH 17 is underway, of which four lane work has been completed on an 11 kilometers stretch. Three flyovers at Surathkal, Kottara Chowki and Kuntikan are in the advanced stages.

The repair work involving concreting of 13 curves on the 37 kilometers stretch of NH 48 at Shirady Ghat section, between Hassan and Mangalore, is partially completed. The stretch has been opened for movement of vehicles and some minor works, which are pending on the proposed stretch, will be completed by end June 2008.

Safety norms at major ports to be reviewed

BS reported that, with workers' safety in ports emerging as a major problem, the union ministry of labor has taken up the matter with urgency. The government has decided to appoint consultants for studying the safety aspects and transport system across all major ports in India. The decision was recently taken at the dock advisory committee meeting.

According to the government data, in 2007, a total of 23 workers had died at work and 153 accidents took place in ports. Between 2004 and 2006, as many as 94 workers died in ports and more than 600 accidents took place.

According to one government official, the major reasons of the deaths in ports were inadequate amenities for workers, poor infrastructure and outdated machineries. Shockingly, majority of deaths in ports over the years occurred when workers were asleep beneath the trucks, waiting to move, in absence of a proper shelter.

Cranes more than 20 year old would not be allowed to operate in ports. The union ministry of labor has also advised the state governments to frame their own rules for the safety of workers in minor ports. At present, the crane operators did not require any license from the government.

Mr A Majumdar deputy chairman of Kolkata Port Trust said that "New types of equipment are needed for the up gradation of ports and to ensure that the ports are of international standard."

Orissa leads states with CAPEX of INR 92,035 crore

According to the AIM study on 'State wise Investments', Orissa topped the chart claiming almost 30% of the total investments announced during the January to March 2008 quarter totaling to INR 3,25,285 crore. West Bengal and Andhra Pradesh followed with the CAPEX announcements of nearly INR 67,361 crore and INR 58,226 crore.

Mr Sajjan Jindal president of ASSOCHAM said that "The mineral rich states are attracting huge investments in sectors such as steel, oil & gas and power."

As per the corporate announcements tracked during January to March 2008 quarter, India Inc did not divulge any significant investment plans in the states of Kerala, Himachal Pradesh, Uttarakhand and Jammu & Kashmir. Furthermore, Assam was the only north eastern state to have any prominent investment. The power sector is expected to receive capital outlay of about INR 4,375 crore.

Home to huge iron ore and coal reserves, Orissa has emerged as a preferred destination for the players in steel producers. They intend to invest as much as INR 45,000 crore to install steel plants with aggregate capacity of 18.5 million tonne. The major players having lined up CAPEX announcements in the state were Vedanta Resources, TATA Steel, Mesco Steel and Bhushan Steel.

States attracting investments

Amount in INR crore
Data Source: Corporate Announcements in Jan-Mar 2008

West Bengal attracted about 21% of the of the total capital outlay proclaimed across India over the same time period. The sectors that drew maximum CAPEX announcements were metals and oil & gas. A sum of INR 20,000 crore is planned to be spent in each of the sectors by the Vedanta Group and Cals Refineries. Steel players too lined up almost INR 11,900 crore for setting up of steel plants in the state. Other major sectors were ports & shipping with INR 2,000 crore and power with INR 1,010 crore. Apart from the INR 1,010 crore in power projects, corporate also intend to invest in captive power projects in West Bengal.

Andhra Pradesh received 18% of the CAPEX planned by the industry over Q4 of 2007-08. Nearly 90% of the funds flowing to the state were allocated to the oil & gas sector. The sector majors envisaged to invest close to INR 52,000 crore in the state. While Hinduja Group in association with ONGC intends to set up a refinery in Kakinada, Reliance Industries would invest in the development of Krishna Godavari Basin.

Chhattisgarh was host to outlay plans of about INR 34,587 crore, as per the CAPEX announcements. Most of the capital spending was proclaimed in the sectors of power and steel. The planned investment in these sectors was INR 17,375 crore and INR 16,000 crore. TATA Steel and Gujarat Mineral Development Cooperation were among the major investors planning to deploy funds in the steel and power sectors of Chhatisgarh. About INR 1,200 crore would flow into real estate for building up of townships.

The corporate India plans to spend a total of INR 14,650 crore in the state of Punjab. As per the corporate announcements made over the last quarter of the financial year 2008, almost INR 14,000 crore may be incurred in setting up of thermal power projects across the state. GVK Power & Infrastructure was the main investor.

Alcan Packaging inaugurates flexible packaging plant in India

It is reported that, Alcan Packaging, part of Rio Tinto Alcan, has officially inaugurated its newest flexible packaging plant, located in the BHEL Industrial Park in Haridwar in Uttaranchal. The ceremony was chaired by Ms Ilene Gordon president & CEO of Alcan Packaging.

The new site, announced in February 2007, currently employs 48 people and is dedicated to producing high value flexible packaging for the food and personal care segments in India.

Ms Gordon said that "The dynamic Indian market represents an attractive opportunity for Alcan Packaging's strategy of growth, and we are pleased to make this USD 10 million investment which establishes our manufacturing presence in the region to better serve customers. This also expands our presence in emerging markets overall, which today represents approximately 20% of our sales."

Mr Jean Paul Meausoone president of Alcan Packaging Food Asia said that "The plant began production on schedule in April 2008 and is already meeting our local and global customers' needs for high quality packaging solutions. We are pleased to be part of this thriving business community in Northern India and we look forward to growing together with customers and becoming part of the local community as well."

Alcan Packaging is a world leader in value-added specialty packaging. It delivers multi material, innovative packaging solutions to customers around the world for the food, pharmaceutical, beauty and tobacco markets. Including the new plant in India, Alcan Packaging now operates 15 sites in six countries and employs approximately 6,000 people in Asia.

250 acres identified in for expansion of Adityapur Industrial Area

FE reported that Jharkhand's biggest industrial area Adityapur Industrial Area Development Authority has identified 250 acres for its expansion in Baharogora. The AIADA has at its disposal the entire Kolhan division comprising 3 districts of East and West Singhbhum and Seraikela Kharswan for that purpose.

Mr Nitin Madan Kulkarni MD of AIADA said that "We have taken up the land issue with the deputy commissioner of East Singhbhum." He added that since the land belongs to the government, acquisition would not be a problem.

Mr Kulkarni said that the authority would have to look for land elsewhere, as the entire 3000 acre area under its jurisdiction had been exhausted. He added that "We have already surveyed the land and found it suitable for industrial purposes. We have requested the East Singhbhum deputy commissioner to initiate process of transferring it to the AIADA."

He has also written to the West Singhbhum deputy commissioner for identification of at least 50 to 100 acres that the AIADA could acquire near the Chaibasa Seraikela road. He said "Units that use iron ore from Chaibasa for making ingots, pellets, etc can be allotted plots there. That will result in reduction of their transportation costs."

Himachal approves Luhri hydel project

Express News Service reported that Himachal cabinet has cleared execution of the 775 MW Luhri hydel project by the Satluj Jal Vidyut Nigam.

DVC board may consider KPMG proposals

Moneycontrol.com reported that the board of directors of Damodar Valley Corporation may consider the KPMG recommendations on organizational restructuring and IPO soon. DVC will approach the centre for a formal clearance in this regard once board approves the proposals.

GMR picks Shangdong as EPC contractor for Kamalanga project

BL reported that GMR group has picked China’s Shangdong Electric Power Corporation as engineering procurement and construction contractor for the 1050 MW Kamalanga Thermal Power project in Orissa.

Sevan Marine won deepwater drilling bid for ONGC project

Sevan Marine ASA has won a bid for deepwater drilling rigs from Oil & Natural Gas Corporation. According to ONGC procedures, after technical qualification, the commercial bids were opened recently, in which Sevan emerged as the lowest bidder.
Subject to the signing of a letter of intent between the parties, the drilling contract will have a fixed term of 3 years. Revenues that could be generated over the 3 year period are approximately USD 569 million including mobilization. Sevan Marine's scope will in addition include the provision of remotely operated vehicles.

Brazilian steel industry discusses challenges at Rio gathering

According to sector players participating in IBS's First Brazilian Steel Gathering in Rio de Janeiro, Brazil's steel industry has been prospering the last several years but still faces serious challenges such as logistics issues, a sluggish environmental agency and power supply.

Mr Rinaldo Soares former IBS president and current member of the board of Brazilian steelmaker Usiminas sees a favorable scenario but acknowledges that competition in coming years is likely to present greater difficulties. Mr Soares noted that stiff global competition, tougher environmental requirements, rigid export barriers, worldwide inflation and a gap in human resources are some of the hindrances facing the metallurgical sector.

According to Mr Isaac Popoutchi ED of CSN, a possible shortage of energy supply is something to worry about in 2011 if Brazil does not upgrade the capacity of its electricity grid. He added that another serious problem is the long, burdening process companies face to obtain environmental permits.

In Mr Andre Gerdau Johannpeter's opinion, logistics gridlocks are also a hurdle. The president and CEO of Grupo Gerdau said that "Gridlocks could shake Brazil's competitiveness. Our logistics system is strangulated."

Mr Wilson Brummer president of the Usiminas board of directors is concerned with the skyrocketing price of oil and how it could affect the entire steel production chain. In addition he said that he has always been a critic of Brazilian's exchange rate policy, which has led to diminished exports, but said that this is something we are going to have to live with.

Wire rod prices in US go up by another USD 60

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

The report said that customers in the US have absorbed back to back prices increases of USD 60 in both May and June and spot prices have risen from about USD 750 per short tons at the beginning of the year.

It said that Gerdau Ameristeel and ArcelorMittal US told their domestic customers last month that wire rod price would increase again in June in order to recover the increased cost of raw material inputs, as well as higher costs of energy and freight. Gerdau said that its mill price includes a raw material surcharge of USD 403 per short ton reflecting the high price of ferrous scrap.

Separately, Keystone Steel and Wire in Bartonville, Illinois hiked wire rod prices by USD 70 per short tons on May 19th 2008. Mr Richard Webb vice president of sales of Keystone confirmed that the company's spot price is now around USD 50 per CWT ex works mill or about USD 1,000 per short tons.

Due to the increased costs of wire rod and reinforcing bar, manufacturers and fabricators of concrete reinforcing mesh and other construction materials have hiked their product prices despite the weakness in residential construction activity.

A Texas supplier of steel construction products said that "PC strand prices for June delivery are now up more than 70% since the beginning of the year and fabricated rebar is up 33%.” He added that at the same time, most domestic wire rod and rebar mills have put their domestic customers and distributors on allocation, pointing to strong demand that is also driving prices higher. But the mills are now exporting more of their product due to the weak US currency and strong overseas demand, where prices are even higher than in the US.

Sidor workers demand change of managers

El Universal reported that a union threatened a strike at Siderurgica del Orinoco, Venezuela's biggest producer of flat steel demanding the ouster of managers who remained in place after a government takeover last month.

The newspaper reported that workers at Sidor said the government should replace the managers left over from when the company was run by Ternium SA.

According to El Universal, the retention of old managers has left workers to believe that the nationalization was a fraud.

European scrap business to get hit by EU environmental rules

It is reported that European metal recyclers risk losing world market share due to the volume of European Union environmental rules.

An industry sources said that Germany and the United Kingdom along with Japan, Russia and the United States are the world's largest exporters of recovered metals, but the European players' market share is under threat due to regulations aimed at reducing the risk of uncontrolled waste shipments.

Mr Lindsey Millington director general of the British Metals Recycling Association said that there are three major problems creating trade barriers for this industry. He said that “First, exporters said that they are exporting recovered metals but under EU rules these are classified as waste. This in turn means that the secondary raw materials are controlled by the EU's new regulation of waste shipments, which came into effect on July 12th 2007.”

He added that “EU said that the aim of the new regulation is to simplify current legislation to reduce the risk of uncontrolled waste shipments. Under the new law, transport of recyclable metals is subject to a contract between the person responsible for shipping the waste and the person receiving the material.”

Mr Graeme Carus director of business development at privately owned European Metal Recycling said that "The process you have to go through in order to get the material into a country is so burdensome. In effect it meant European exporters had stopped shipping to some countries, such as Bangladesh. It is not so much that they do not have the waste shipment regulation, but they also do not classify metal as waste.”

Global steel consolidation to continue its pace - Deloitte

Mr Yaroslav Gorodiskiy corporate finance division of Deloitte at the Metal Bulletin steel conference in Moscow told delegates that the consolidation of steel producers will not slow down in coming years.

Mr Gorodiskiy said that the 15 largest steelmakers in the world account for 34% of the global output as compared with 25% 10 years ago. But Mr Gorodiskiy highlighting that consolidation in the steel industry is slower than in other sectors.

He added that “Nonetheless the pace of growth of the world's leading consolidators will help the number of mergers and acquisitions as steelmakers could no longer continue growing by organic means.”

However, he admitted that protectionist governmental policies in some regions could prove an obstacle to M&A activity citing the US and Europe as examples. He also warned delegates of the dangers of failed integration of acquired businesses, suggesting this could be prevented by thorough due diligence before the deal.

Ann Joo to make flat steel products by mid 2009

The Edge Daily reported that Malaysia’s Ann Joo Resources Bhd will start producing flat steel products by mid 2009 to expand its offerings, boost earnings and enter a market that has relatively few competitors. Ann Joo Resource’s plant will have the capacity to produce 1.1 million tonnes of molten steel of which 600,000 tonnes will be cast into slabs to produce flat products.

At the moment there is only one flat steel producer in Malaysia Megasteel Sdn Bhd, which is under the Lion group. Megasteel’s capacity is 2 million tonnes per annum.

Mr Datuk Lim Hong Thye ED of Ann Joo Resources said the flat steel products would be produced at its Penang plant, where the steelmaker is building a MYR 600 million blast furnace complex to make molten iron to produce higher grade steel products. The furnace is due to start operations in December.

He said that “Venturing into flat products or engineering steel enables the company to diversify its earnings base as the materials can be used across various sectors including oil and gas and shipbuilding. Engineering steel products are priced between 20% and 40% higher than steel bars used in the construction industry. Once we move into engineering steel, our earnings base will be diversified even though we are focusing only on the steel industry.”

Ann Joo Resources presently imports its flat steel products from global manufacturers including Japan’s Nippon Steel Corp and South Korea’s POSCO.

Steel makers in North America on the roll

Researched by Industrial Info Resources, North America remains a hotbed for steel mill project development in 2008.

A November 2007 study showed USD 11 billion in major capital and maintenance project work at North American steel mills scheduled to begin construction in 2008 or beyond. Today, that number has grown to more than USD 14 billion.

In addition, there is about USD 8 billion worth of work underway in North America. Most notably is the USD 3.7 billion mill that ThyssenKrupp is building in Alabama. There are 33 other major projects under construction. For example, Nucor Corporation will complete construction on a USD 250 million specialty bar quality steel manufacturing mill this year at Memphis in Tennessee.

The study said that capital spending plans for North America's steel mill sector have increased significantly this year. Global consolidation of the steel industry continues and cash rich foreign investors continue to look for strategic acquisitions in North America.

The most recent trend involves renewed interest and investment in the integrated steel segment. For years, North American integrated steel mills have downsized and lost market share to the scrap steel minimill sector. There are only 17 operational integrated steel mills in North America, but rising demand, commodity prices and raw material concerns are causing steel makers to look at integrated steelmaking as an option for new capacity projects. Foreign and domestic investors like Nucor and SeverStal are investing big dollars to increase US market share.

Canadian Institute of Steel offers seismic design courses

It is reported that the Canadian Institute of Steel Construction recently offered a series of commercial building and seismic design courses across the country to help identify the best way to use steel to provide greater earthquake resistance in buildings up to 10 storey tall.

Mr Mike Gilmor president of the CISC said that “We do not like to use terms like earthquake proof. But we like to think of steel as a more ductile material, better able to resist seismic forces.”

He added that the 2005 National Building Code of Canada is a reflection of the 2005 Geological Survey and makes provisions for a one in 2,500 year seismic occurrence.

Mr Gilmor said that “There are many ways to use steel to satisfy those provisions, but we can help professionals to do it in the most economical and efficient way possible.”

Mr Stephane Mazzotti a seismologist with the Geological Survey of Canada in Sidney said that the quality of information in that province is based on a steady stream of real data actual earthquakes under scientific scrutiny. He said that “In BC and Yukon we’ve recorded hundreds of earthquakes over the past 30 years or so and therefore we have a fairly robust idea of the magnitude of earthquakes that might occur every 100 years.”

Canada’s seismic risk map is constantly upgraded as more accurate information is collected. The Geological Survey of Canada released its first survey in 1953 with updates in 1970, 1985 and 2005. The latest survey formed the basis of earthquake standards under the most recent National Building Code update.

Stomana Industry inaugurates new long products mill

It is reported that Mr Georgi Parvanov president of the republic of Bulgaria has inaugurated the new, state of the art, steel long products rolling mill of STOMANA INDUSTRY SA, the SIDENOR Group subsidiary at Pernik in Bulgaria.

The BGN 156 million (EUR 80 million) investments is a part of the significant ongoing investment program implemented at STOMANA INDUSTRY, since 2001 when the company was incorporated into SIDENOR Group and has reached BGN 254 million to date. The new mill has increased the company's production capacity of long products to 1,000,000 tonnes per year and covers a total surface of 25,000 square meter including production facilities, administrative buildings and warehouses. The company, also, produces flat products with production capacity 400,000 tonnes per year. The total annual production capacity of the company amounts to 1,400,000 tonnes.

Mr Milios CEO of SIDENOR Group and Member of the Board of Directors of STOMANA INDUSTRY said that "We are extremely proud of the achievements of STOMANA INDUSTRY in Bulgaria and the region during the last several years. We are happy to share with you the successful implementation of this extremely important for SIDENOR investment project. We do believe, that the new Rolling Mill will contribute to our success and will have impact upon the development of the internal market in Bulgaria and will strengthen our position in the international markets.”

Mr. Anton Petrov member of the board of directors of STOMANA INDUSTRY said that "This production line is unique for Bulgaria and together with the electronics and automation innovations of the production processes it is one of the most advanced in the Europe. The new Rolling Mill will produce concrete reinforcing steel with the SD brand, hot rolled round bars and merchant bars. With the implementation of this investment, STOMANA INDUSTRY becomes the largest producer of these products in the Balkan region.”

Environmentalists question upgrades at US Steel

UPI reported that environmentalists are questioning whether a billion dollar upgrade at the largest US steel plant near Pittsburgh will be enough.

Mr Myron Arnowitt director of Pennsylvania's Clean Water Action said that “US Steel Corp expects to spend USD 1 billion to replace its coke oven at the Clairton Coke Works, but how is it going to affect the people who work and live in Mon Valley for the next 40 years is the big question.”

US Steel has applied to the Allegheny County Health Department to proceed with the first part of the upgrades. The report said that part of the effort is to reduce soot, which has contributed to the American Lung Association's ranking the Pittsburgh area as the sootiest in the nation.

Mr Tishie Woodwell director of environmental control of US Steel said that the upgrades approach LEAR the lowest achievable emissions rate."

Preliminary approval granted for Ipswich Site of Boulder Steel

The directors of the Boulder company announced that conditional Preliminary Approval has been granted by Ipswich City Council for the alternative Seamless Tube Project site in the centre of the Swanbank Enterprise Park.

As already mentioned in the Boulder's Report for the Quarter ended March 31st 2008, the company is considering producing pig iron in order to significantly enhance the quality of the raw material base for the future steel and tube plant and to achieve an earlier cash flow.

The management of Boulder therefore is assessing larger, alternative sites which allow for the inclusion of a pig iron plant.

It is expected that a final decision on the project site is made before the end of this month. The Company will keep the market informed on further developments.

MOX announces over MYR 350 million investments

Malaysia’s largest industrial gas company MOX, now a member of global gases and engineering company The Linde Group, brought on stream in the last 6 months two new plants with an investment of approximately MYR 100 million.

As per report the plants in Shah Alam was commissioned at the end of 2007 and the second plant in Penang was commissioned just last month. The new plants add a further 400 tonnes per day capacity for MOX. In addition, as part of its aggressive growth and investment strategy in Malaysia, MOX will further invest around MYR 250 million to expand production capacity over the next two years.

Mr Wong Siew Yap head for Malaysia MOX said that “This will be one of the largest investment tranche seen in the 48 year history of MOX. Included are investments that will meet the increased needs of long term electronics and glass customers in the east coast and the Klang Valley. The plants are scheduled to be completed by early 2009.”

Mr Wong said that “Another significant tranche of capacity for the production of oxygen, nitrogen and argon will also be added in the southern region in 2010, making it the largest plant for the area. With almost 600 tonnes per day of output, this plant will meet demands in the steel and chemical industries boosting supply and service reliability, while at the same time complementing The Linde Group’s business operations in Singapore,” said Wong.

Mr Wong added that “With these investments, coupled with our innovative technical solutions, competent workforce and the fact that MOX is now a member of The Linde Group, we are well positioned to continue to be the number one industrial gas company in Malaysia.”

MOX with over 40 major plants and installations across the country is also finalizing plans to set up the country’s biggest carbon dioxide plant to increase on its existing production capability currently located in Kemaman and Kertih in Terengganu.

South Africa to replace entire rail fleet

Engineering News reported that South Africa's state run rail company plans to replace its entire fleet of 4 600 commuter trains to attract passengers and ease congestion on the roads.

Mr Tshepo Lucky Montana CEO at the South African Rail Commuter Corporation told reporters that "We want to replace the entire fleet.”

Mr Montana said that South Africa plans to spend some ZAR 140 billion over the next five years to revamp its transport infrastructure ahead of the 2010 Soccer World Cup, with ZAR 18 billion earmarked for passenger rail, though the new trains would probably not be in service by the time the competition starts.

He added that millions of people in South Africa's sprawling urban and semi urban areas rely on minibus taxis and trains to ferry them to work. Although cheaper than other transport modes, trains are often late, unsafe and overcrowded using technology dating back to 1956.

He said that "What we are buying now will have to meet and address our requirements in the demand for rail over a period of 20 years to 25 years adding that passenger demand is projected to increase over 10% a year.

But Mr Montana did not said that how many trains were ordered or the cost implications but said at today's prices a motor coach costs slightly more than ZAR 5 million and a passenger coach ZAR 3 million.

Mr Montana said the cabinet was expected to make a decision by July amid concerns of rising costs due to increasing steel prices.

A Statistics South Africa survey published in March showed households spent 22.9% of their budget on transport, making it the largest and fastest growing item on the budget.

Siemens continues its share buyback program

Siemens AG announced that it will continue its share buyback program, which has a total volume of up to EUR 10 billion, by acquiring a further tranche of up to EUR 2 billion.

This corresponds to a volume of up to 28 million shares at the current price. Within subject to market conditions the company intends to repurchase the shares by July 23rd 2008 in order to cancel and reduce capital stock and to a lesser extent, fulfill obligations arising out of stock compensation programs.

Siemens will mandate a bank to execute the share buyback. During the period of the buyback, the lead management may be transferred to another bank. The buyback will be executed under the most favorable terms available on the Xetra trading platform of the Frankfurt Stock Exchange. In the period from January 28th 2008 to April 8th 2008, Siemens repurchased an initial tranche of company shares with a nominal value of approximately EUR 2 billion.

Mr Joe Kaeser CFO of Siemens said that “This is another important step toward achieving our capital structure goal while maintaining our financial strength. With this second tranche of our share buyback program, we are rigorously implementing what we promised to our shareholders and owners.”

LEEA names Mr Holden as CEO designate

The Lifting Equipment Engineers Association has appointed Mr Geoff Holden as its chief executive designate. After 30 years service with the Lifting Equipment Engineers Association, current chief executive Mr Derrick Bailes is stepping down from the post in December, but will continue to work for the association on a part time basis in a number of other roles.

Mr Holden has worked in the overhead lifting industry since 1976 and joins the Lifting Equipment Engineers Association from Spanset UK Limited, where he was sales manager for height safety products. With an honors degree in metallurgy, his professional experience spans a range of senior research, sales and business management roles, in companies that include Certex, Liftex and Bridon Ropes.

Mr Holden said that "I am looking forward to the challenge of continuing to grow the association nationally and internationally and building upon the excellent work done by Mr Derrick."

Mr Bailes said that "Mr Geoff will bring a wealth of relevant technical and commercial expertise to the role. Over recent years our membership has grown significantly, along with the range of services and support that we can provide. The Lifting Equipment Engineers Association is fast becoming a truly global organization and I have no doubt that Geoff's arrival will only serve to build on these positive trends."

Lifting Equipment Engineers Association, established in 1944, currently represents 273 members, covering over 500 locations worldwide. Based at a training centre and head office in Huntingdon, the Lifting Equipment Engineers Association offers members a wide range of services. These include practical, hands on training and a long established distance learning course designed to prepare students for the association's industry recognized diploma qualification.

Siemens to sells Napier Turbocharger business to Primary Capital

Siemens Energy announced that it has sold its Napier Turbocharger business, a 100% subsidiary of the Oil & Gas Division to the investment firm Primary Capital of London. Siemens had announced its plan to sell its turbocharger business in March, 2007

Napier operates in Lincoln, Great Britain and employs 160 workers engaged in design, manufacture and service of turbochargers used with diesel and gas engines in marine, power generation and rail traction applications. It generates an annual turnover of more than GBP 30 million. Primary Capital has purchased the business for an undisclosed sum and intends to further develop Napier’s product portfolio and increase the turnover of the company. . Orders and sales of the Napier Turbocharger business have risen over the last three years and the future outlook is for continued growth driven by an expanding market.

Mr Frank Stieler CEO of the Siemens’ Oil and Gas Division said that “The Napier business does not form a part of our core business of the division but it is renowned as an innovative company with an excellent suite of products. I am pleased that Napier has been acquired by Primary Capital who committed to investing further in R&D and in the expansion of the turbocharger business.”

Mr Neil Wallace an Investment Director with Primary Capital said that “As an independent business, Napier will have the flexibility to work more closely with its partners.”

PT Adaro oversubscribed 6.57 times

The Jakarta Post reported that shares offered by PT Adaro Energy in a book building process that ran from May 26 to June 5 were oversubscribed by 6.57 times, with 81.3% of the investment coming from overseas.

PT Adaro is expecting to receive a statement legitimizing the Initial Public Offering from Capital Market & Financial Institution Supervisory Agency on June 20.

The shares, priced at IDR 1,100 each are scheduled to go on sale from June 24th to June 28th 2008 and will be listed on the Indonesia Stock Exchange in early July. Based on the final offering price, the total amount of proceeds will reach IDR 12.3 trillion (USD 1.31 billion) or 34.83% of the total number of shares owned by the company.

Mr Houston Jusuf MD of Adaro's lead underwriter PT Danatama Makmur in a statement said that "The strong enthusiasm shown by various groups of investor candidates indicates strong confidence in the performance and potential of Adaro.”

Mr Boy Garibaldi Thohir president director of Adaro said that "This will be the largest Initial Public Offering in Indonesia's capital market.”

Adaro said that the majority of the proceeds will be used to purchase indirect ownership of 33% of shares in PT Adaro Indonesia, 33% in coal infrastructure and logistics firm PT Indonesia Bulk Terminal and 36% in coal trader PT Coal Trade.

Adaro will also use some of the proceeds to repay subsidiary debts of USD 100 million, fund the expansion of its subsidiaries and implement an overall consolidation of its other companies' strategic business units.

Doosan Heavy to supply 13 cranes to Singapore's PSA

Reuters reported that South Korea's Doosan Heavy Industries had won a KRW 103.5 billion (USD 100.4 million) order to supply 13 cranes to Singapore's PSA Corp. Ltd.

Doosan in a statement said that it would supply the equipment by July 2010.

POSCO denies reports if immediate plan to hike steel prices

Reuters reported that POSCO denied Monday local newspaper reports that it would raise product prices soon to reflect higher raw material costs and a price gap with competitors' offerings. POSCO denied having any immediate plans for a price increase.

Mr Choi Doojin a POSCO spokesman said that "We have no current plan to raise steel prices. We are closely monitoring market conditions."

South Korea’s Maeil Business Newspaper citing industry sources said that POSCO could raise domestic prices as early as in June and predicted a hike of 15% or around KRW 100,000 (USD 97) per tonne.

POSCO raised prices by as much as a fifth on April 10th 2008 but expectations for a further hike have been high as its prices still lag those of Chinese or smaller domestic rivals such as Hyundai Steel. Despite rising prices of raw materials such as iron ore and coking coal, POSCO has kept its hikes minimal to maintain good relations with customers. POSCO sells three quarters of its products at home.

Vietnam to bans new cement making licenses

VNA reported that Vietnam’s ministry of construction has told several provinces to stop granting investment licenses for new cement plants from now until 2015.

The report said that under the development plan of existing cement plants and plants under construction, the country will be able to supply enough cement for local demand in 2009.

It said that by 2015, domestic cement production will exceed local demand by about 17.8 million tonnes a year.

South Korea steel output to cross 70 million tonnes by 2010

According to Korea Iron and Steel Association, South Korea's iron and steel production capacity is estimated to reach 70.53 million tonnes a year by 2010 up by 18% from the current 59.82 million tonnes.

The association said that South Korea, the world's fifth largest iron and steelmaker, will invest KRW 7.49 trillion in 2008 in building and upgrading facilities, up by 73.2% YoY.

South Korea's steel production topped 10 million tonnes for the first time in 1981.

Oil price jump may slow global growth - IMF

According to International Monetary Fund, oil's gain of more than USD 10 a barrel Friday will likely slow global growth.

The report quoted Mr John Lipsky first deputy MD of International Monetary Fund as saying that "This will add to the downward pressure on global growth. If you compare it to where we were back in September when we made our forecast for 2008, this would take about a full percentage point off."

Mr Lipsky said that crude oil rose by USD 10.75 or 8.4% to USD 138.54 a barrel in New York Friday, the biggest ever gain in dollar terms and the largest on a percentage basis since June 1996. It surged as the dollar weakened following a report that the US unemployment rate grew the most in two decades and as Morgan Stanley said prices may reach USD 150 a barrel within a month.

He added that by the second half, all major economies will be growing below trend. Emerging markets will grow above the average of the last 10 to 15 years, although at a slower pace.

Mr Lipsky said that "We are not claiming that they are decoupled, but we think there is a clear division in performance.”

He said that the challenge to the economy of Russia, the world's biggest energy exporter, which has had average growth of more than 7% since 2000, is from managing large inflows of petrodollars. He added that "The government needs to take care both with its fiscal spending and with monetary policy to sustain the continued good performance and avoid worries about an inflationary spiral.”

UAE government not to interfere to curb rebar prices

Emirates Business reported that UAE government has ruled out any intervention in the markets to curb the price of reinforced steel, which is on an upward spiral.

Mr Mohammed Abdul Aziz Al Shehi undersecretary of the ministry of economy said that the ministry will not move to fix the price of a tonne of steel, which currently ranges from AED 5,400 to AED 5,700 according to the country of origin. He added that the steel price hike is not a local or regional occurrence but a global phenomenon.

Mr Al Shehi said that "We will not fix the prices since they change each day and price fixing will lead to an absence of steel from the markets, which would be very damaging to the real estate and infrastructure projects underway in all emirates."

He added that the shortage of cement will disappear in a few days and the ministry will this week announce a list of 30 suppliers of cement nationwide who are selling at AED 18 a bag. Moreover, cement is sold for AED 16 a bag at cement factories and there is no need for contractors to buy at higher prices since availability is not a constraint at the factories.

Dubai to issue revised code of safety standard for construction

Emirates Business reported that construction companies in Dubai have been warned that they will face severe penalties if they do not meet new safety requirements.

As per report, Dubai Municipality will soon issue a revised code of safety standards, which will be binding on all construction projects in the emirate. The code specifies stringent penalties and calls for the formation of a safety management committee at each construction site prior to the start of work.

Mr Ahmed Khalil Abdul Karim safety engineer at Dubai Municipality's building department said that the new code had been approved and is being printed. He added that "Within 2 weeks it will be distributed to all contractors, consultants and subcontractors in Dubai. The code specifies the minimum safety measures and mechanisms that need to be implemented. It is left to the contractors to implement any additional measures."

Mr Mohammed Hamed El Oupy manager of health, safety, environment & quality at Mirdif Security and Safety Consultants said that the code incorporates the UK and US standards. He added that "Unlike the old system the new code will be binding on all developments, irrespective of whether it comes under Tecom, Jafza or Dubai Civil Aviation."

Mr Oupy said that "In future safety managers will not be solely responsible for accidents at construction sites, it will be the responsibility of the whole committee. The safety program prepared by the committee before any construction work starts will have to be approved and signed by the consultants and the project managers."

Airbus identifies Abu Dhabi as potential site

Bahrain Tribune reported that commercial aircraft maker Airbus has identified Abu Dhabi as a potential site for future Airbus manufacturing facilities.

Mr Tom Enders CEO of Airbus said that Abu Dhabi is under consideration as it worked to cut costs and move operations outside of Europe. He added that "We do consider Abu Dhabi. This is something under discussion."

He said that Abu Dhabi has identified high technology manufacturing, particularly within the aerospace sector, as a strategic opportunity to diversify its economy away from its dependence on the hydrocarbon industry. He added that "Plans include the creation of a new port and industrial free zone, as well as billions of dollars in new infrastructure projects."

Abu Dhabi's aerospace plans involve a multibillion dollar plant to produce carbon fiber, a lightweight and durable material increasingly used as a component in aero planes by Boeing and Airbus. The plant could be built as early as 2010 in the emirate.

Mr Enders said that "Among that obviously is off shoring major parts of the work in manufacturing and also in engineering, because cost is a very serious problem for us at current exchange rates."

Dubal 2007 aluminum output up by 12.6% YoY

Reuters reported that Dubai Aluminum has posted output of 889,548 tonnes in 2007 up by 12.6% YoY, spurred by robust domestic and global demand.

Mr Khalid Buhumaid GM of Dubal said that "The most recent expansions of the company's production facilities have contributed to the increased output. We have also continued to see strong demand in the first quarter of 2008 and accordingly our output was up by 5% YoY."

Mr Buhumaid said that "In 2007, 22% of our total sales volume was consumed in the Middle East. This region is currently Dubal's third largest market, after Asia and Europe." He said Dubal is also expected to ship 100,000 tonnes of aluminum to Japan to meet demand for the material. About 52% of the shipment will be billet, while high purity aluminum will account for about 25%.

In 2006 Dubal produced 789,341 tonnes of extrusion billets and foundry alloys, used mainly in construction, transport and electrical industries. Dubal is expected to increase its production capacity to more than 950,000 tonnes by the end of 2008.

Bahrain cement crisis ends as Saudi supplies arrives

Gulf Daily News reported that a cement shortage that threatened to plunge Bahrain's construction industry into crisis ended recently as trucks carrying cement from Saudi Arabia started to arrive through the King Fahad Causeway after several days of hold ups.

Dr Esam Fakhro chairman of Bahrain Chamber of Commerce & Industry confirmed the flow of cement had resumed following the intervention of high level officials.

He said that "The chamber will continue its efforts to co ordinate with officials in both countries to reach a lasting solution. The efforts being executed will no doubt result in permanently excluding Bahrain from any such procedures that we have been facing in the past few days."

Custom officials said that the first trucks were allowed to cross the border into Bahrain at around 10 AM local time. They added that more than 3,000 tonnes of cement also arrived in Bahrain by sea to further ease the strain.

It may be noted that full supplies of cement have been disrupted, creating a crisis in Bahrain's construction industry, which requires between 8,000 and 10,000 tonnes of cement a day.

DP World gets approval for London Gateway project

Dubai based port operator DP World has received the final seal of approval to build a USD 3 billion shipping port and logistics park on the banks of the River Thames in southeast England.

The London Gateway project, which DP World inherited following its acquisition of P&O in 2006, involves the development of an 1800 acre form oil refinery in Essex into a deep sea port and the biggest logistics park in the United Kingdom. Construction work is scheduled to commence later this year, following a harbor empowerment order from the department of transport.

DP World's plans include a 2300 meter long container quay with a fully developed capacity of 3.5 million standard container units a year. In addition, the logistics park will offer 9.5 million square feet for the distribution, manufacturing and high tech sectors.

Mr Sultan Ahmed Bin Sulayem chairman of DP World said that "DP World is planning to invest approximately USD 3 billion to develop London Gateway over a 10 to 15 year timeframe. This represents our long term commitment to bringing benefits and value to our customers and to the UK economy. We are very pleased with the government's approval of the harbor empowerment order, which is a significant milestone for the project."

Mr Simon Moore CEO of London Gateway said that "This is an historic day for the shipping industry and the economy as a whole. We will be the UK's first major port for more than 25 years. London Gateway will be a port centric logistics platform of a size and scale unique in the UK. Our customers will be able to cut costs from their supply chains, increase efficiency and reduce their environmental footprints."

Final approval of the project follows a long battle for P&O to develop the site, including a public inquiry and a number of amendments to the original plans, in addition to measures to cope with extra road traffic.

Gazprom to invest USD 200 million in Iran Armenia gas pipeline

Armenian news agency Arminfo quoted Mr Armen Movsisyan minister of energy & natural resources of Armenia as saying that by the end of 2009, the Russian gas giant Gazprom will invest more than USD 200 million in the construction of the Iran Armenia gas pipeline.

Mr Movsisyan said that after the completion of construction work, Armenia will have access to another alternative gas pipeline along with the current one from Russia and based on the prices that are offered, will decide which of them it should use. He added that currently, Armenia pays Russian Gazprom USD 110 per 1,000 cubic meters of gas, however, the price will change from January 1st 2009.

Mr Movsisyan added that it is planned to build a new nuclear block in Armenia in 2016 when the existing energy block of the nuclear plant expires. Even though Armenian legislation allows foreign investors to own 100% of stocks, the government intends to control half of the project stocks. He added that "If the government does not take part in the project, then this project has no real significance for us. However, the operation of the current nuclear block will not be suspended until the new one is built."

Jiangxi Copper to exploit Aynak copper deposit in Afghanistan

It is reported that Afghanistan’s ministry of mines & industries inks deal with China's Jiangxi Copper to exploit the Aynak copper deposit in Afghanistan. The agreement was signed in Kabul on May 25th 2008.

All parties involved will pay Afghanistan's ministry of mines & industries a total of USD 808 million through installments in order to get access to excavate the mine for 30 years.

The Aynak copper mine consists of about 705 million tonnes of proved ores with 1.56% copper grade, or 11 million tonnes of copper metal reserves.

Jiangxi's refined copper production capacity is expected to reach 700,000 tonnes per year in 2008, up from 550,000 tonnes per year in 2007.

One injured in Kuwait oil plant explosion

Kuwait TV reported that an Indian laborer was injured in a fire at a chemical plant in Kuwait's oil rich southern region that was the result of a blast.

The fire department said that the blaze was apparently caused by chemicals exploding at the plant in Mina Abdullah near Kuwait's second largest oil refinery.

A security source said that one Indian worker suffered minor burn injuries in the blaze, but he did not mention an explosion. The plant is run by the privately owned United Petroleum Projects Company, a Kuwaiti company that deals with oil products.

Kuwait to launch tender for USD 2.5 billion power plant

Gulf Daily News reported that Kuwait is planning to launch tenders for power expansion worth more than USD 2.5 billion to meet rapid growth in power demand through 2015.

Mr Khaled Al Wasmi assistant under secretary at the ministry of electricity & water said that record oil export revenues are fuelling economic growth throughout the Gulf. He added that "The main reason for the new plants is housing plans. Kuwait has short listed 6 firms for a tender to build combined cycle gas turbine units for a northern power plant with a capacity of 2,000 MW."

Mr Al Wasmi said that Kuwait will launch a second tender by early 2009 to build another power plant in North Al Zour, with a capacity of 4,700 MW. He declined to give a precise estimate for the cost of the plant, but said it was expected to cost more than EUR 1 billion.

He said the plant will be built in four phases, to be completed in 2011. Two of the phases will have capacity of 1,500 MW, one of 900 MW and another of 800 MW. He added that the pre qualified companies for the new northern plant are US General Electric, Japan's Mitsui and Marubeni Corporation, Siemens, Spain's Iberdrola Ingenieria Y Construccion and Canada's SNC Lavalin.

Iranian president quick implementation of rail projects

Mehr News Agency quoted Mr Hassan Ziari MD of Islamic Republic of Iran Railways Organization as saying that Iranian President Mr Ahmadinejad has urged rapid implementation of 5 projects underway in the rail transportation sector.

The 5 rail line projects are
1. Tehran Mashad express train
2. Gorgan Mashad railway
3. Chabahar Mashad railway
4. Tehran North freeway
5. Golestan Gilan express train

Pakistani ports likely to be handed over to provinces – Report

Associated Press of Pakistan quoted Mr Qamar uz Zaman Kaira minister for ports & shipping as saying that ports in the country can be handed over to the provinces as a provincial subject under the spirit of maximum provincial autonomy. During his visit to Port Qasim, he said that the federal government has already decided to minimize items on the concurrent list to possible level.

Mr Kaira said that Gwadar Port owns only 600 acres of land and the rest land is occupied by private housing schemes under the administration of Balochistan government. He added that "We have planned to sit with all stakeholders and review what items or subjects can be transferred to the provinces under the first phase of giving provincial autonomy."

Mr Kaira emphasized that it is need of the hour to modernize or upgrade and expand our ports to meet the growing trade requirements of Pakistan, of the region and of the global economy. He added that "Till now, Pakistan’s ports are as single country ports and plans were in progress to transform these into major ports in the region where mother ships can be anchored."

He said that Gwadar port needs modern infrastructure and allied facilities to play its leading role in promotion of investment and trade upto Central Asian States. It would be also cheaper for some parts of China and India to do business through this port because of its geo important location. The roads and railways network connecting the Port with other areas of the country would be completed before end of 2010.

He further added that said 5 member Cabinet Committee, with due representation from Balochistan, has been constituted which is looking into the matters of Gwadar Port and framing viable plan to make this port operational at the earliest.

It may be noted that Karachi Port Trust and Port Qasim has already cut their charges significantly and had improved quality of services to port users to emerge as cost, services and time competitive ports in the region. Port Qasim caters to around 40% of the import and export of Pakistan.

Arabtec wins major construction contract from Nakheel

UAE daily The National reported that Arabtec Construction has won an AED 3 billion contract to build the first 1,500 homes at Nakheel’s Al Furjan development in Dubai. The win by Arabtec follows an AED 1 billion contract awarded to Khansaheb Civil Engineering in May 2008 to undertake all infrastructure work at the development.

Arabtec will start construction of the first homes on the project in August 2008, with completion expected in the third quarter of 2010. The project will include 4,000 villas and terraced houses across four communities. It is located on a 5.4 million square meter site behind Discovery Gardens and close to Jebel Ali Village, which Nakheel is redeveloping as part of the Dubai government’s strategic plan to address the need for affordable housing in the emirate.

Mr Aaron Richardson media relations manager at Nakheel said that "Part of our remit is to provide housing for a complete range of socio-economic groups from selling islands on The World to top individual investors, to targeting family home buyers."

Mr Riad Kamal chairman of Arabtec said that the latest contract win will take the company’s value of work under construction in the UAE to AED 34 billion. He added that "All of our contracts have a price escalation clause to cover price rises of steel and cement. We also now fix the price of steel at the start of a job. Clients have very understood as no developer wants a contractor to go bust halfway through a project."

Contracts for the second phase of construction are yet to be awarded, but the entire project has been earmarked for completion in 2011. US based Turner Construction is the project manager on the development.

Sungwon wins KRW 480 billion road construction deal in UAE

Yonhap reported that South Korean builder Sungwon Corporation has signed a KRW 480 billion deal to build roads in Dubai.

The roads are to link Business Bay, an area being developed into a main business town of Dubai, with an area where Burj Dubai, which will be the world's tallest building, is under construction.

Sungwon plans to complete construction of the roads by 2010.

One dies in Selahattin Aslan shipyard accident

Today’s Zaman reported that another worker died in a work related accident at Selahattin Aslan shipyard in Istanbul's Tuzla district. The Selahattin Aslan shipyard is the scene of the most recent accident, but the area's shipyards have recently been the focus of criticism in the wake of a rash of deadly mishaps linked to unsafe working conditions.

As per report, the worker was killed in the shipyard after being crushed by a steel plate weighing hundreds of kilograms as he was working.

Mr Muammer Güler governor of Istanbul, who responded to journalists' questions regarding the frequent accidents at the Tuzla shipyards, said that serious measures need to be taken at the shipyards. He added that "Two important meetings on shipyards will be held in Istanbul next week. Workers' safety will be laid on the table during these meetings. Some Turkish shipyards face problems that stem from an increase in demand in the shipbuilding sector. I am hopeful that these problems will be solved thanks to efforts made to this end."

It may be noted that the number of fatalities from work related accidents at the Tuzla shipyards has exceeded 20 in just the past 8 months. More than 50 fatal accidents have occurred in the last 7 years at the shipyards, largely due to electric shocks and falls from platforms.

Iran expresses interest in Nabucco pipeline project

Mr Alireza Sheikh Attar deputy foreign minister of Iran said that Iran is interested in the Nabucco gas pipeline project and other projects to be launched in the region.

Mr Attar said that "Yet we have not received an official suggestion to attend the project Nabucco. If there will be an official request, we will consider it."

The Nabucco gas pipeline will ensure the gas delivery via the Mediterranean and Caspian Sea to Europe via Azerbaijan, Georgia, Turkey, Bulgaria, Hungary, Romania, and Austria. Initial supplies will commence in 2013 with the cost of the project estimated at USD 7.4 billion.

Saudi oil revenue put at USD 1 billion a day – Analyst

Mr Brad Bourland chief economist at Jadwan said that Saudi Arabia is making USD 1 billion a day in oil revenues on the back of record global fuel prices. The soaring cost of fuel in recent months has boosted state oil giant Saudi Aramco's revenues from USD 895 million a day at the end of February 2008 to over USD 1 billion currently.

Mr Bourland said that "Currently Saudi Arabia is making over a USD 1 billion a day in oil revenues. So USD 30 billion a month, of which about half is being used to support core government spending, and the other half is going to Sama which says it's growing its foreign assets by about USD 15 billion a month. This is going to continue on and on, and the sovereign wealth story will continue to roll."

According to International Energy Agency production assumptions, Saudi Arabia oil revenues are predicted to hit USD 16.6 trillion by 2030 with prices at USD 150 a barrel. Oil income for the UAE is expected to reach USD 4.6 trillion over the same period and for Kuwait this figure is USD 4.5 trillion. In total, by 2030 all 3 countries will command USD 25.7 trillion in revenues with oil priced at USD 150 a barrel.

Agility to buy Chinese Cosa Freight for USD 30.6 million

Kuwait based Agility said that it had signed an agreement to buy a Chinese freight forwarder in a deal worth up to USD 30.6 million.

The purchase of China's Cosa Freight will enable Agility to provide marine cargo services in China, Hong Kong, the United States and Canada.

NAAC becomes major iron and steel hubs – Report

Arab Steel reported that most of the crude steel production is concentrated in the North Africa Arab Countries. The steel production of four Arab countries located in NAAC amounted to 9.4 million tonnes in 2007, accounting for 55.3% of the total crude steel production which amounted to 17 million tonnes. Crude steel production had doubled in NAAC between 2000 and 2007. It rose from 4.9 million tonnes up to 9.2 million tonnes.

No country powerful enough to determine oil prices – Saudi Arab

Saudi Arabia said that no country alone has the power to determine international oil prices, regardless of the size of its output capacity.

Oil price touching USD 140 mark

Oil price jumped more than 8% to a record USD 139 a barrel, last week extending a two day rally to more than USD 16 as the slumping US currency and rising tensions between Israel and Iran attracted a flood of buyers.

ME maritime industry expects trade momentum to continue in 2008

It is reported that the credit crunch and the slowing US economy are not expected to have much impact on the Middle East maritime industry.

Chinese HRC export prices cross USD 1000 FOB

It is reported that Chinese steel makers have shot up export offer for hot rolled steel coil again citing the robust domestic market prices. The substantial rise in ex works price for Q3 is believed to be the major reason for this increase.

Steel producers have been raising Q3 price successively. Wuhan Steel lifted its HRC price by CNY 400 per tonne and there is an extra of CNY 100 per tonne for thickness under 3.5mm and width above 1300mm.

On Shanghai market, price for commercial 4.75mm to 12mm HRC in 1500mm width has risen to CNY 5850 per tonne to CNY 5900 per tonne, in 1800mm width at CNY 6200 per tonne and SPHC 2.5mm HRC at CNY 6500 per tonne.

Most export offers for commercial 4.75mm to 12mm HRC has exceeded USD 1000 per tonne FOB last week. A tier two steel makers in North China is offering its SS400 HRC at USD 1030 per tonne FOB up by USD 40 per tonne to USD 50 per tonne from middle May.

Traders are surprised at the price jump and most of them are weighing the market before action. A Shanghai based trader told Mysteel that he is able to take commercial HRC at USD 1000 per tonne to USD 1010 per tonne FOB but have not concluded any business at current price levels.

(Sourced from MySteel.net)

Ansteel and Bekaert building plant in Chongqing

It is reported that Ansteel, a leader in the Chinese steel industry, and one of the top steel producers in the world and Bekaert, global market and technological leader in advanced metal transformation and in advanced materials and coatings, decided to set up a 50:50 joint venture.

Following the announcement of May 26th 2008 on the Memorandum of Understanding outlining the terms for a strong cooperation between Ansteel and Bekaert, the joint venture is a first step in the realization of the strategic partnership.

Ansteel and Bekaert will invest a total of EUR 150 million in the construction of a new steel cord plant to be built in the Shuangqiao District within the Chongqing Municipality. This investment will, in line with market development, take place in phases. The first phase is scheduled to enter production in 2009 and involves a capital investment of EUR 40 million. Both companies will sign the investment agreement with the Shuangqiao District Government in Chongqing on June 8th 2008.

Mr Chen Ming Director of the Strategic Development Department of Anshan Iron & Steel Group Corporation said this joint venture is an important step in Ansteel's strategic downstream integration plans since it will open up new markets for Ansteel in partnership with Bekaert a world leader in advanced wire products.

Mr. Geert Roelens Group Executive Vice President of Bekaert added that with Ansteel being our partner in wire rod development and supply as well as an industry leader with great knowledge of the local market, we are confident that this first tangible realization of our partnership agreement will be the start of an extensive and fruitful cooperation.

He said that this project well addresses the westward development objectives and actions of the Chinese Government and of the customers to whom Bekaert wants to continue to ensure nearby support.

Chinese steel export prices summary

It is reported that the export price for various products to different countries during last week was as under

Billet
20MnS
South Korea -1080
S.E Asia -1080-1100
Price in USD per tonne FOB

R Bar
BS grade for EU and M East
HRB400 for South Korea and S.E Asia
Europe -1120/1070-1080
S.Korea -1100
S.E Asia -1100-1120/1070
Middle East- 1100
Price in USD per tonne FOB

Wire Rod
SAE1008 for EU
Q195 for Asia
Europe -1120-1165/1090-1110
South Korea -1120/1070-1100
S.E Asia - 1120-1140/1090-1110
Price in USD per tonne FOB

HR plate
SS400 for Asia
S235JR for EU
Europe- 1170-1220
S. Korea- 1050-1130/1030-1060
S.E Asia -1140
Price in USD per tonne FOB

HR Coil
SS400 for Asia
S235JR for EU
Europe-1030-1050
S.Korea-1020-1030
S.E Asia-1030
Middle East- 1040
Price in USD per tonne FOB

CR Coil
SPCC
Europe -1120-1140/1040-1050
South Korea -1090-1120
S.E Asia -1120
Middle East -1120
Price in USD per tonne FOB

HDG
DX51D/SGCC
Europe -1160/1060-1080
S.E Asia -1140-1160
Price in USD per tonne FOB

(Sourced from Mysteel.net)

Update on earthquake effected industry in China

Xinhua cited officials with the Ministry of Industry and Information Technology as saying that about 51% of quake affected enterprises including those already back into operation would be able to resume production within a month.

The ministry said "We estimate that another 25% would be able to resume production as well in three months. It said Chinese enterprises had suffered a total loss of more than CNY 200 billion in the 8.0 magnitude quake that devastated southwest China on May 12th 2008.

The ministry said insufficient supply of power coal, oil products and gas due to transport problems, as well as a lack of working funds, were major problems that hindered the resumption of production at quake-hit enterprises. It said these quake-ravaged enterprises were also strained in their efforts to help employees settle down after the devastating quake.

The ministry said enterprises that turned out production materials such as electricity, gas, water and coal and those which produced rescue- or reconstruction-related goods were the highest priorities in resumption. It said it was pressing on with the resumption of production at enterprises that made tents, portable houses, disinfectants, and fertilizers, farm chemicals, farming machines, construction materials and food-processing factories.

The report added that