Indian Stainless Steelmakers Directory 2008

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

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

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

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

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

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This report covers name and product details of 55 of Indian stainless steelmakers in Alphabetical as well as in production range grouping.

Look at the information you'll get in the 'Indian Stainless Steelmakers Directory 2008'
• Company name -55 entries
• Address-55 entries
• Phone number-55 entries
• Fax number -55 entries
• Email -55 entries
• Products & Services

Publish Date: March 2008
No. of Pages: 55
Price: INR 14,000 plus 12.36% service tax for Indian buyers
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SAIL BSP witnesses record production in Q1

Steel Authority of India Limited’s Bhilai Steel Plant announced that its production during April to June 2008 quarter has surpassed all previous records.

BSP, in a press release, said that "In 2008-09, not only have we sustained higher levels of production, the Fe 500 grade of TMT, which we are producing in both Merchant & Wire Rod Mills, is now being made available to the customer with earthquake resistant properties. The Merchant Mill has exceeded its Q1 annual business plan target of 124,000 tonnes by producing 147,000 tonnes to meet more orders for its high corrosion resistant grade and EQR in Fe 500 grade."

BSP had recorded its best performance so far in 2007-08 fiscal in the production of hot metal, crude steel and saleable steel.

Monday Market Monitor (WEEK 27) - Eruption suspended

Despite the fact that Indian steel majors Steel Authority of India Limited, TATA Steel and few others, who decide the Indian domestic steel price line, are marinating their price line for 3 months as promised to the Indian government in the second week of May 2008, raw material cost prices, global levels and speculation of impending increase had put Indian domestic steel market on fire in WEEK 25 and WEEK 26. Domestic prices for input materials, long products as well as flat products have all witnessed big jumps in all the regions during this period.

Price movement for Mumbai market during WEEK 25 and WEEK 26 is given below to outline that the increase is spread across all product categories

Price in INR per tonne
Inclusive of ED and VAT
Delivery – FOT

Market sources attributed speculations of impending listed price increase by steel majors on July 1st 2008 as main reason for such unprecedented rise, in addition to surging input material costs and high global price levels.

Indian government, which is under immense pressure with inflation crossing 11% mark, , took note of this eruption and called all major and primary steel producers of India on July 3rd 2008 to discuss and outline strategy for containing market prices.

Mr RS Pandey secretary to the ministry of steel impressed upon the producers that despite an assurance given by them at a meeting with the Prime Minister to hold the price line for three months, prices have gone up at the retail level. He strongly emphasized upon the need to hold the price of steel items at a time when the government is fighting inflationary pressure.

Indian steel majors supported the directive of government dispelling the speculation of increase of prices in July 2008, thus cooling the market immediately. As a result, upward movement of steel prices across all categories by and large stopped in general and some products at certain locations witnessed corrections. The market sentiment took a nose dive and it was to some extant helped by reporting of 10% price reduction in steel, although it was announced only by tube makers.

Price movement for Mumbai market during WEEK 27 is given below

Price in INR per tonne
Inclusive of ED and VAT
Delivery – FOT
Note for GP – There is short supply situation for thicker gauges in Mumbai market due to shut down of a line of major player for revamp

Some of the major corrections witnessed in WEEK 27 across India are listed below

Price in INR per tonne
Inclusive of ED and VAT
Delivery – FOT

This week is likely to see further corrections, as the buyers and stockiest are assured of no increase by steel majors at least during July 2008. This sentiment may prompt them to limit buying putting pressures on secondary steel makers and stockiest in short term.

Readers may note that the price levels indicated in this article represent the market fairly and are outlined to give trends only, but could be in variance with some transactions at different levels for smaller volumes etc.

(Sourced from www.steelprices-india.com)

NHRC conducts human right violations inquiry at POSCO site

BS reported that a special reporter of National Human Right Commission from New Delhi has visited the site of POSCO's proposed INR 51,000 crore steel plant near Paradip in Orissa to conduct inquiry into the allegations of violation of human rights and illegal eviction of villagers for acquisition of land for the project.

There have been frequent clashes between a group supporting the project and one opposing it, resulting in loss of life and property. This led to social divide and deterioration in the law and order situation. Due to this, education of children and cultivation were affected.

In view of the condition of villagers and violation of human rights, the Delhi based Forum sought intervention of National Human Right Commission to conduct a probe regarding the land acquisition for the project and violation of human rights, if any.

In a separate development, Kujang Criminal Bar Association led by its president Mr A Yadav submitted memorandum to the State Human Right Commission highlighting alleged violation of human rights at the POSCO site recently.

IIM Indore to impart management education to SAIL officials

As a part of the MoU with Steel Authority of India Limited, Indian Institute of Management Indore is all set to impart management education to middle level executives of SAIL.

The program has been designed by IIM Indore at the instance of the SAIL to take up this course to enable and equip their executives with necessary skills to face the new challenges ahead in the steel sector. The post graduate certificate program in management will be held for 15 numbers of middle level executives selected by SAIL.

Dr Pawan Kumar Singh director of IIM Indore said that the course has been designed to deliver the specific needs of the company. He emphasized that with the vital ingredients of focused dedication and disciplined approach for analytical problem solving in real life situations under constraints and pressures, the participants will immensely benefit from the grueling curriculum under the expert guidance of the finest faculty. He added that "The faculty would prepare the participants to meet the challenges in the area of operations, finance, marketing, IT, project management, logistics and supply chain management and the crucial utilization of human capital."

Dr Prashant Salwan program director for this course has presented the overview of the program. He briefed that “The program is divided into three terms. In the first two terms, the participants will be offered 16 core courses in economics, marketing, finance, accounting, organizational behavior, costing, etc. All these courses are compulsory. In the third term, participants will be offered elective courses. In addition to classroom teaching, there would be industrial visits and guest lectures. The participants will also have to work on the live-project concerning their area.”

BIS to implement mandatory certification for steel products

BS reported that Bureau of Indian Standards will implement mandatory product certification for 17 steel items from August 12th 2008 and has organized an awareness program in this regard.

Mr Varghese Joy director & head of Coimbatore chapter of BIS said that “Central government has published steel and steel products order 2007 in a recent notification and 17 steel products used for power distribution, health and safety, infrastructure and construction and storage and cooking of food products are brought under mandatory product certification. These were enjoying voluntary certification option so far.”

He added that "The Coimbatore office covers Coimbatore, Erode and the Nilgiris districts and the main product made is tor steel. There are 6 manufacturers and 9 licensees already for this."

BIS has 33 branch offices in India and some of them had laboratories too. The manufacturers had the option of getting the products certified in an approved laboratory and producing the report and a sample. Normally, for mandatory certification, the BIS would collect the sample and test it.

L&T to boost deep sea drilling business

BS reported that Larsen & Toubro is planning to acquire a research company to expand its technological skills in deep sea drilling.

Mr AM Naik chairman of L&T said that "Oil is found in deeper sea now. The current technology does not work in exploring oil from the deep sea. There are many companies in the world conducting research on the technology and we are aligning with one of them." He added that it may buy a company in about 6 months for expanding its exploration activities.

Larsen & Toubro expects to earn at least 25% of its revenues overseas. It has bagged contracts from several multinational oil companies, helping the company earn about 17% of its total revenue. It is also looking to get into the manufacture of nuclear reactors for export. At present, it manufactures them for domestic use only.

L&T is now restructuring the company into 12 companies and three subsidiaries. It recently acquired a company in Malaysia and is creating a new engineering facility in Saudi Arabia.

JNPT posts highest Q1 throughput growth among major ports

Exim News Service reported that Jawaharlal Nehru Port has emerged as the number one in terms of traffic growth and third in total throughput handled during the first quarter of 2008-09 among Major Ports by handling 14.98 million tonnes of total cargo during April to June 2008 period and registering a growth of 18.83% YoY over the same period of 2007-08. It had registered a throughput of 12.60 million tonnes in the first quarter of 2007-08.

Container traffic handled during April to June 2008 quarter was 1,056,556 TEUs, of which JNPCT contributed 314,659 TEUs, NSICT 371,744 TEUs and GTI 370,153 TEUs. Container traffic handled during the same period of 2007-08 was 941,829 TEUs. Thus, the growth in box traffic in Q1 of this fiscal has been 12.18% YoY. Of the total 257,576 TEUs of ICD traffic handled during the period under review, JNPCT had 67,569 TEUs, NSICT 103,144 TEUs and GTI 86,863 TEUs.

JNP handled 1 million tonnes of liquid cargo, 179,000 tonnes of dry bulk cargo and 2000 tonnes of break bulk cargo during the first quarter of 2008-09.

In June 2008, JNP handled 457,760 tonnes of liquid cargo at the BPCL Jetty, which is an all time monthly record since the commencement of operations at the jetty. The earlier liquid cargo handling record was 445,662 tonnes in April 2005. It is expected to maintain a growth rate of over 20% during the current fiscal.

Areva successfully tests 1,200 KV transformers

PTI reported that Areva Transmission & Distribution India has successfully type tested its first 1,200 KV capacitor voltage transformer unit in India, based on its global design for ultra high voltage solutions.

Areva T&D is the first to conform with the next level of power transmission voltage at 1,200 KV in India to meet the Power Grid Corporation of India Limited's requirements for the national grid by 2012. This unit would be installed in the PGCIL sub station at Bina in Madhya Pradesh slated for commissioning by 2009.

Mr Rathin Basu country president & MD of Areva T&D India said that "We constantly endeavor to set new benchmarks and this is yet another milestone which continues our tradition of offering the Indian power sector UHV solutions much before they become common know how in India."

Areva T&D is also planning to increase the number of domain experts at its global R&D centre for instrument transformers at Bangalore. This centre set up in 2006, is playing an integral part to support the company's ongoing quest to remain at the forefront of technology and innovation in the field of instrument transformers.

Swastik Sponge to set up power plant and coal washery in Kanberi

It is reported that Swastik Sponge & Power Limited will set up a 50 MW power plant and a 0.9 million tonne capacity coal washery at an estimated cost of INR 257.08 crore in Kanberi.

Mr Nitesh Agrawal director of Swastik Sponge said that it is the only local company to set up a power plant in the city. The plant will come up in accordance with his objective to set up an industry using local natural resources. He added that "Our engineers will give technical training to the locals to make them eligible for recruitment, he said. About 400 people will benefit from the project and there is no possibility of exploitation."

Modern technologies will be utilized in the plant to minimize the pollution level. It will be equipped with 80 high chimneys with an ESP of 50 mg emission capacity and a bag filter for effective pollution control. Water in the plant will be recycled entirely. A separate ash disposal plan has been framed to utilize solid waste, fly ash, bottom ash and slag properly. A CFBC and an air-cooled condenser will also be set up to serve the purpose.

The proposed power plant will utilize run of mine and reject coal. The project will require 302 kiloliter water per day, while 2x5 MVA ferroalloys plant will require 151 kiloliter a day and coal washery, 452 kiloliter. The power plant will require 443530 tonne coal per annum, ferroalloys plant 83125 tonne and coal washery 900000 tonne per annum.

Swastik Sponge & Power Ltd will acquire approximately 50 acres for the project at Khairbhavna, Sonpuri and Kanberi villages. It has already acquired 35.5 acres of private land in these villages.

Complaints of steel hoarding baseless - Ludhiana Traders

Tribune News Service reported that Ludhiana Iron Sheet Traders Association in its meeting has discussed the current steel prices.

Mr Sandeep Gupta president of Ludhiana Iron Sheet Traders Association said that a few entrepreneurs of steel consuming units are levying baseless allegations on them regarding hoarding steel.

He added that, under SAIL’s MoU policy HR coils are given only to industrialists and not to traders, under such circumstances it is not possible for traders to create any artificial shortage.

DVC to build new power plants

Mr Asim Kumar Burman chairman of Damodar Valley Corporation emphasized that it has committed towards welfare of poor people, displaced and the inhabitants of the area surrounding its plants.

He added that DVC would provide C and D category jobs to displaced persons in its new power plants in Jharkhand.

It may be mentioned that DVC is building new power plants at several places in the state including CTPS and BTPS.

Greenko acquires rights for 4 hydro projects in Karnataka

It is reported that Greenko Group Plc has acquired rights for four hydro projects in Karnataka and will invest EUR 36 million for their development. The four hydro projects include

1. Sonna – 10.5 MW
2. Kallur – 16 MW
3. Joladadagi – 16 MW
4. Dinnekere – 2 MW

Sonna Hydel project is likely to be commissioned March 2009 and is expected to generate 23,500 tonnes per annum of CER. The plant will sell electricity to the Karnataka state grid under a long term power purchase agreement with Hubli ESCOM. The electricity from Kallur, Joladadagi and Dinnekere mini hydro schemes will be sold at premium prices either through an agreement with power trading companies or direct to industrial end users.

GM plans power train manufacturing facility in Pune

BL reported that General Motors is planning to invest INR 1,000 to INR 1,200 crore to set up a power train manufacturing facility at its Talegaon plant near Pune.

GM is expected to sign a MoU with Maharashtra government for the purpose by mid July 2008. The power train plant will have a capacity to produce 200,000 units per annum. Besides using the facility for manufacturing engines and gear boxes for the spark model, the Talegaon facility will be also used for export.

It has already invested around INR 1,400 crore in setting up the facility to manufacture the spark model. The first car from the plant is expected to roll out from September 2008. The car manufacturing plant has a capacity of 130,000 units per annum.

Manali to Leh railway link soon - Report

BS reported that, in a major move to push tourism in the hill states and counter Chinese expansion in the Tibetan region, union railways ministry has prepared a blueprint to set up an ambitious 480 kilometer long Manali Leh railway line link in the treacherous mountains in Himachal Pradesh and Jammu & Kashmir.

The project will cost over INR 16,000 crore and the ministry is already preparing a detail survey plan for the project. The distance will be traversed in around ten hours.

A senior railway ministry official said that "A detailed survey plan for the proposed Manali Leh railway line has been prepared and is under the active consideration of the railway board. The expenditure for the survey will be shared jointly by the Himachal Pradesh government and the centre."

The plan is to lay a broad gauge railway track between Jogindernagar and Manali via Mandi and extend it 480 kilometer further to Leh via the Rohtang pass and beyond. The security concerns are a key reason for building the train line.

Mr Prem Kumar Dhumal chief minister of Himachal Pradesh said that "With China building the Beijing Lhasa railway track, it is critical for India to respond and build the Manali Leh route both from the security and tourism point of view of India. I have just returned from Leh and the response I received from the people of Ladakh has been tremendous. The private sector is already showing a keen interest in building this railway track."

Indian domestic steel scrap price trends (WEEK 27)

Melting scrap
80:20
HMS

Price in INR per tonne
Inclusive of ED and VAT
Delivery – FOT

(Sourced from www.steelprices-india.com)

Indian domestic pencil ingot price trends (WEEK 27)

Pencil ingot

Price in INR per tonne
Inclusive of ED and VAT
Delivery – FOT

(Sourced from www.steelprices-india.com)

Indian domestic rebar price trends (WEEK 27)

TMT (Local mills)
Fe 415
12mm

Price in INR per tonne
Inclusive of ED and VAT
Delivery – FOT

(Sourced from www.steelprices-india.com)

Indian domestic wire rod price trends (WEEK 27)

WRC
SWR14
5.5/6

Price in INR per tonne
Inclusive of ED and VAT
Delivery – FOT

(Sourced from www.steelprices-india.com)

Indian domestic light sections price trends (WEEK 27)

ANGL
GR A
65x6

New Delhi 47300 45500 -1800 -3.8%
Price in INR per tonne
Inclusive of ED and VAT
Delivery – FOT

CHNL
GR A
75/100

Price in INR per tonne
Inclusive of ED and VAT
Delivery – FOT

(Sourced from www.steelprices-india.com)

Indian domestic medium beam price trends (WEEK 27)

JSTI
GR A
250x125

Price in INR per tonne
Inclusive of ED and VAT
Delivery – FOT

(Sourced from www.steelprices-india.com)

Indian domestic plate price trends (WEEK -27)

PLTS
GRB
12-20x2.5

Price in INR per tonne
Inclusive of ED and VAT
Delivery – FOT

(Sourced from www.steelprices-india.com)

Indian domestic patra price trends (WEEK 27)

Patra / Narrow strip

Price in INR per tonne
Inclusive of ED and VAT
Delivery – FOT

(Sourced from www.steelprices-india.com)

Indian domestic CR price trends (WEEK 27)

CR
DSK
0.63x1000

Price in INR per tonne
Inclusive of ED and VAT
Delivery – FOT

(Sourced from www.steelprices-india.com)

Indian domestic GP price trends (WEEK 27)

GP / HDG
100Gms
0.4

Price in INR per tonne
Inclusive of ED and VAT
Delivery – FOT

(Sourced from www.steelprices-india.com)

Ship plate cuttings prices at Alang (WEEK 27)

Alang
Plate cuttings
Rolling
1”

Price in INR per tonne
Inclusive of ED and VAT
Delivery – FOT

(Sourced from www.steelprices-india.com)

Steel prices expected to remain firm in coming days – Report

ET reported that Indian domestic steel prices continue to remain high in the international markets with a price difference between domestic and overseas steel hovering between INR 10,000 and INR 15,000 per tonne. Moreover, with Indian demand for steel moving faster than the growth in production, prices are expected to remain firm in the coming days.

Mr SK Roongta chairman of Steel Authority of India Limited said that the domestic industry is yet to see the peak of steel prices as prices has been artificially controlled by companies despite an overall surge in input prices. He added that "I feel that the days of low steel prices are over. This is the message that should be given out. I do not see resource prices falling sharply even after the present wave of price rise halts."

He said that "The steel market has changed significantly in the last 12 months. Coking coal prices have shot up by over 200%, scrap price remains high while iron ore prices under negotiated deals have gone up 70% to 95%. Even with this pressure, the industry has put voluntary cap on prices. This situation is not sustainable for a long period."

Mr Roongta said that "While we have to live with higher steel prices now, the solution lies in increasing the production capacity. This could only check any abnormal increase in prices based on speculation and perception of a shortage. I feel that too much should not be made from the present rise in inflation. We should take positives out of the rising inflation as it should make us strive for efficiency and cutting unproductive expenditure. There is ample scope with everyone to cut cost."

PFC Consulting may float JV next month

It is reported that PFC Consulting Limited is likely to form a JV with an international company in August 2008 to provide technical expertise to power utilities. It has also formed 3 special purpose vehicles or companies floated to execute specific projects for power projects in Orissa. The SPVs would look after the selection of developers for the 3 coal linked projects, which will provide nearly 50% of power generated to Orissa.

PFC is also selecting developers for the thermal project linked to the Maurya coal block in Jharkhand. The 3 beneficiary states for the project would be Jharkhand, Uttar Pradesh and Bihar. It has consultancy assignments in Punjab, including for Talwandi Sabo Power Project, Rajpura Power Project and Nabha Power Limited. It also has two projects in Rajasthan to which it would provide services related to land technology and fuel.

PFC Consulting till date has assignments worth INR 80 crore and plans to open consultancy site offices in Jaipur, Mohali and Ranchi. PFC is the nodal agency for the central government’s ambitious ultra mega power projects. Three UMPPs namely Mundra, Sasan and Krishnapatnam were under the purview of PFC and the rest of the UMPPs are with PFC Consulting.

PFC Consulting is also in talks with Jharkhand for unbundling of the state electricity board and is also looking after the re organization of the Bihar State Electricity Board, including human resource planning, manpower distribution among new entities and other related work.

L&T decides to splits ECC division into 4 companies

PTI reported that Larsen & Toubro has decided to split its engineering construction and contracts division that has seen sharp jump in business in recent years to increase efficiency in managing growth.

Mr J Ganguly executive VP of L&T said that "We have decided to split the ECC divisions’ functional areas into four companies. ECC will be the holding company for it." He added that the functional restructuring has been effected since July 1st 2008 and the four divisions have begun work independently, though some manpower allocation for the departments was yet to be completed.

Mr Ganguly said that "With the business becoming too big we need to take steps to reduce the management response time to act quickly to the market. And this is possible when a company is small. We may take these four companies of the ECC division to the public in the next 2 to 3 years after attaining a critical mass of USD 1 to USD 1.5 billion each."

The ECC is the largest construction company in India and has ranking globally operating in four major areas building and factories, infrastructure, power and minerals, metals & water. The ECC division contributes nearly 50% of L&T's revenues. Beside ECC, L&T has Engineering & Construction Projects, Heavy Engineering, Electrical & Electronics, Machinery & Industrial Products and Information Technology & Engineering Services.

JNPT main channel dredging may face fresh delays – Report

Exim News Service reported that Jawaharlal Nehru port’s INR 800 crore project for dredging and widening of the main harbor channel appears set to face fresh delays in the wake of the port deciding to scrap the on going tendering process and to go in for fresh tenders as the latest bid by a foreign dredging house exceeded the port’s estimated outlay for the project.

Though it had finalized the successful bidder earlier this year, JNPT could not award the work as it was unable to get the required clearance from the ministry of shipping for the latest bid. The bidder had also threatened to take back its bid, claiming that the delay in finalization of the project had led to an increase in the project cost, sources said. This has now forced the port to flag off a fresh tendering process.

For JNPT, this project, which is aimed at accommodating bigger vessels in the port, is vital as shipping lines are increasingly deploying bigger container vessels to gain economies of scale. Thus, with increasing trend towards larger container ships, draught has become an important factor in the choice of port by shipping lines. JNPT may lose out in the race for getting a bigger slice of India’s increasing container traffic, as at present vessels having a draught of 12.5 meters have to navigate through Mumbai harbor channel and JNPT channel, making use of the tidal window.

Despite its draught constraints, JNPT handled a throughput of 55 million tonnes, including non container cargoes, last fiscal, registering a 24% YoY growth, thanks to the boom in containerized cargoes. In terms of TEU units, JNPT handled 4.06 million TEUs, reflecting a 23% YoY growth.

TATA Corus may have not happened but for ArcelorMittal – Report

Mr Aditya Mittal CFO of ArcelorMittal feels that that the acquisition of Corus may have made TATA Steel the world's 6th largest steel maker but the deal may have never happened but for ArcelorMittal.

Mr Mittal said that "If the deal had not gone through, I do not think the steel industry would be where it is today, consolidation would not have happened and people would be very careful in doing deals. Yes, it may not have."

Mr Mittal said that "Corus was very clear, once we had succeeded, that they need to do something about their future and they began discussions with TATA very wisely. It was very interesting. The day we became successful, there were 10 steel companies in the world that immediately instituted a defense mechanism."

Had the ArcelorMittal deal failed to materialize, he felt that "The world would have been a different place, so would have been the steel industry. It has happened much better than any of us expected."

It may be noted that TATA Steel launched an offer to acquire Anglo Dutch steel maker Corus in October 2006, within four months of Mittal Steel successfully completing a transaction with Arcelor to create an entity that controls nearly 10% of the global steel production.

Indian domestic iron ore spot prices surge by 10% (WEEK 27)

We had reported on June 29th 2008, that after Orissa Mining Corporation’s latest quarterly tender on for sale of iron ore during July to September 2008, the market prices of iron ore in Orissa are expected to surge by INR 500 per tonne

As per reports received On July 1st 2008, the prices of iron ore in Burwil area of Orissa have gone up by INR 500 per tonne.

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

(Sourced from www.steelprices-india.com)

Indian domestic plate price trends (WEEK -27)

PLTS
GRB
12-20x2.5

Price in INR per tonne
Inclusive of ED and VAT
Delivery – FOT

(Sourced from www.steelprices-india.com)

Mr Shyam Sundar Prasad appointed as MD of JSMDC

Ranchi Express reported that former Sahebganj Deputy Commissioner and 1994 batch IAS officer Mr Shyam Sundar Prasad was appointed MD of Jharkhand State Mineral Development Corporation.

His appointment was notified after governor Mr Syed Sibtey Razi gave his mandatory approval to Mr Prasad’s appointment.

L&T bags INR 446 contract from JSW Power Transco

Projects Today reported that Larsen & Toubro has bagged an order worth INR 446 crore from JSW Power Transco for evacuation of power from the 1,200 MW Jaigad coal based power project, being set up by JSW Energy in Maharashtra.

The Jaigad Karad and Jaigad New Koyna 400 kV transmission lines will have a length of 169 kilometers. The scope of work involves survey, supply of components like transmission line tower, conductors, insulators, hardware accessories and construction of the line across two sections.

The work order is expected to be completed within 18 months.

Indian government hurdle in ADAG power plans

BS reported that any surplus should be used to generate additional power that should be sold through a tariff bidding process.

In the past, Reliance has not ruled out the possibility of increasing the capacity of the Sasan project beyond 4,000 MW, which will require additional coal.

The company is, however, planning to fast track the Chitrangi project. Under the earlier understanding with the Madhya Pradesh government, the project was scheduled to begin only by 2014.

Sasan, among the first two UMPPs to be offered for bidding, has been shrouded in controversy. Lanco had originally been awarded the project after it bid to generate power at INR 1.19 per unit.

The bid was later cancelled on grounds that it was declared void from the beginning, following a corporate restructuring. Reliance was then awarded the bid by virtue of being the next highest bidder.

India Cements bucks slowing industry trend

At a time when the domestic cement industry is reeling under the pressure of rising input costs and declining net realization per tonne of cement, India Cements has bucked the trend by registering a 6.32% rise in net realization in June quarter.

The realization is squeezed by around 5% to 10% on an average in the financial year 2008 owing to higher input costs and inability to pass on the cost increase to the end consumers.

Mr N Srinivasan VP & MD of India Cements said that "There has been no price reduction by the company. To offset the soaring input costs, we have increased the prices marginally in the June quarter. The net realization of the company in 2007-08 was INR 2,784 a tonne and in the current quarter the realization is INR 2,960 a tonne."

The 196 million tonne cement industry is adding around 30 million tonne of fresh capacity in the financial year 2009.

Shree Cement launches rural initiatives

BS reported that, with the recent slowdown in the real estates market and upcoming additional capacity of 3 million tonnes, Shree Cements has turned its focus on the relatively untapped rural market to be the next growth driver for the company in coming years. Rural market's share in the company's overall sales has witnessed a steady increase of 7% annually in last 2 years and is expected to touch 10% annual average growth during the next 5 years.

It will manufacture an additional 3 million tonnes in 2 new factories in Chhattishgarh and Madhya Pradesh with an investment of INR 2000 crore. It has chalked out an expansive rural marketing plan for marketing this additional capacity in the villages of Rajasthan, Haryana, West Uttar Pradesh, Punjab, Chhattisgarh, Madhya Pradesh and Gujarat. It had plans of taking up its cumulative capacity to 20 million tonnes per annum by 2012.

Shree Cements has roped in a specialized agency that will help it in Hindi heartland markets. At a micro level, rural marketing entail drives will entail increasing retail presence inside smaller villages, kasbas and mini towns apart from visual merchandising at retail points together with rural and highway wall painting exercises that could make the brand visible in markets where mass media still has a poor reach.

Coupled with this, the company is also launching mass contact programs it called identification of purchase stimulators in the rural market. This will include conducting product training programs for masons, local construction contractors among others.

Mr HM Bangur MD of Shree Cement said that "We have adopted a lot of below the line marketing tools to drive rural growth. We have earmarked INR 5 crore this year towards rural marketing."

BHEL bags INR 2,500 crore contract from APGENCO

Projects Today reported that Bharat Heavy Electricals Limited bagged an order worth INR 2,500 crore from Andhra Pradesh Power Generation Company to provide boilers for a 1,600 MW coal based power project at Krishnapatnam in Nellore district.

BHEL has outbidded the JV of Larsen & Toubro and Mitsubishi Heavy Industries for the project.

Assam Carbon blames workers for lock out

BS reported that Assam Carbon Products Limited, whose plant in Birkuchi has been under lock out since November 2007, has blamed the employees union for the impasse.

Mr GP Chawla GM of ACPL said that "The union is still in no mood to resolve the problem through discussions and is using the delaying tactics and is engaged in blame game." He added that the state government has failed to initiate and termed it as illegal strike resorted to and lawlessness created by a section of workmen led by a most unreasonable union.

He said that the labor union disregarded two directives of labor office of government of Assam dated November 23rd 2007 and November 27th 2007. He added that the management was willing to lift the lock out but could not do so due to an adamant union.

The management of ACPL is not ready to accept the demand of the employees' union of equivalent wages as advance for the period of no work.

New industrial plot policy ups prices in Uttarakhand

BS reported that after months of dithering, Uttarakhand government has announced the new land allotment policy for industrial development, a move that has sent land prices soaring by nearly 200%.

Under the new policy, the price of an industrial plot will now be 125% more than the last highest bid price in that particular notified industrial area. This is being interpreted as nearly 200% increase in industrial land prices since the last bidding process in 2006.

When one buys land in Pantnagar, the government will charge a premium of 125% on the last highest bid price, which was INR 3,600 per square meter in 2006.

Sources said that a substantial chunk of land was still available at key industrial areas like Hardwar and Pantnagar, which are being developed by the State Industrial & Infrastructure Development Corporation of Uttarakhand Limited.

According to an estimate, nearly 300 acres is available in both the Hardwar and Pantnagar industrial estates, where top companies like TATA Motors, Hero Honda, Ashok Leyland, Nestle and others have set up shop. With the concessional industrial package coming to an end on March 31st 2010, the government is keen to make money since scores of industries are ready to buy more land.

Mr BC Khanduri chief minister has indicated that his government would not go for open bidding as far as the allotment of industrial plots was concerned. Nearly 100 firms including Bajaj Auto, Nestle and TATA Motors have approached the government to buy land in the notified areas of Pantnagar and Haridwar for their expansion programs.

The existing base rates at both the Pantnagar and Haridwar industrial estates are INR 2,500 per square meter. The land prices in both the estates have appreciated 400% since 2004. In 2004, the land price was INR 560 per square meter, which rose to INR 1,500 per square meter in 2006.

Ashok Leyland has decided to double its investment in the state from INR 1000 crore to INR 2000 crore as part of its expansion plan, a proposal already cleared by the government. Early this year, the company was allotted 17 acres of land at Pantnagar. Similarly, TATA Motors, which is investing INR 2,000 crore at its manufacturing facility in Pantnagar, is also planning to buy more land.

Meanwhile, the Uttarakhand government has started taking action against all those industries which are taking benefits of tax holiday scheme but have not begun any construction or production at the industrial plots given to them at Haridwar and Pantnagar industrial estates.

Scores of industrial plots have been cancelled so far and all others, which have not started their production, are being given notices. The sources said all these cancelled plots can also be given to all those industries which are interested in buying more land for their expansion program.

Fire at steel market in Navi Mumbai

PTI reported that a fire broke out at the steel market in Kalamboli in the neighboring city of Navi Mumbai.

A fire official from the Kalamboli fire brigade said that the fire fighting operations had begun at around 0500 hours and operations were still on.

He added that the market place was destroyed by the fire but there were no injuries or deaths due to it.

Record growth in rail-bound traffic by 105% in New Mangalore Port

Mr TR Baalu reviews the performance of New Mangalore Port

The rail bound traffic in New Mangalore Port has grown by 105% YoY from 3.018 million tonnes in 2006-07 fiscal to 6.185 million tonnes in 2007-08 fiscal. There has also been a steady growth in container traffic which has risen by about 24% YoY in 2007-08 over 2006-07.

This was revealed at a meeting chaired by Mr Thiru TR Baalu union minister of shipping, road transport & highways which was called to review the performance of the New Mangalore Port.

Mr Baalu directed that in view of the growth in container traffic, steps should be taken to plan a container terminal at the New Mangalore Port. He said that preliminary discussions should be initiated with various oil PSUs and companies for exploring the possibility of setting up of an LNG terminal at NMPT.

He was also informed that the important scheme of capacity addition of five million tonnes to the port with the commissioning of deep draft multi purpose general cargo berth number 14 has been completed under the National Maritime Development Program. With a draft of 14 meters, this has enabled handling of vessels up to 80,000 DWT.

The traffic in the NMPT has grown from 32 million tonnes in 2006-07 to 36 million tonnes in 2007-08. The NMPT has taken up a number of initiatives to add infrastructure during the previous year. It has the second lowest manpower among the Major Ports after the Jawaharlal Nehru Port. Computerized bio metric fingerprint time attendance system for the Port workers has boosted the productivity in the port. A state of the art modern cruise lounge has also been set up in the port providing excellent facilities to the cruise passengers.

Mr Baalu directed the chairman of NMPT to take measures to further improve the ship berth day output in the Port to ensure that the manually handled cargo performance improves further. He also directed that measures should be taken to expedite the project for mechanization of cargo handling at berth number 14.

Indian steel firms sell direct to users to curb price – Report

Reuters reported that Indian steel firms have started selling products directly to small buyers to help save costs, as part of their commitment to keep prices down and stave off inflationary pressures.

While steelmakers themselves would be unaffected by the move, small and medium enterprises who have been forced to buy through middlemen because of the smaller size of orders may save between 20% and 25% of their costs. About 5% of hot rolled products are marketed through retailers who buy from the steel companies at the same price as major buyers and sell it to SME consumers at a marked up price.

A senior official at JSW Steel Limited said that "The ultimate beneficiary of the current system is the middleman. As a support to the government to fight inflation, we are selling directly to the end consumers to ensure they get the right price."

Steel firms promised to take steps to fight inflation last week including reviewing trading arrangements and setting a maximum retail price. Other steps include advertising the price and facility for small buyers to buy through the internet.

JSW Steel Limited said in an advertisement that it will make up to 10 tonnes steel available to actual users through its warehouses across India. TATA Steel Limited sells only 20% to 25% to retailers and has no plans for direct retail sales. Jindal Steel & Power said that it does not have any such plans as of now.

Ground broken for Formosa steel complex and port in Vietnam

Vietnam Net Bridge reported that Mr Nguyen Tan PM of Vietnam attended the ground breaking ceremony for the iron and steel complex and Son Duong Formosa deep water port in central Ha Tinh province on July 6th 2008.

Mr Nguyen Tan during the ground breaking ceremony said that this is the biggest foreign invested project worth nearly USD 8 billion ever undertaken by the Formosa heavy industry group from Taiwan.

He praised the coordination among the Formosa group, the Ha Tinh provincial People’s Committee and other relevant ministries in completing the necessary procedures to carry out the project early. The project will play an important part in restructuring the economy of Ha Tinh province and the central region.

He also urged the Formosa group to accelerate the implementation of the project and to provide support for vocational training and university education program in the province and asked the provincial leaders to create favorable conditions for investors to implement the project. Mr Dung also urged the investors and local authorities to generate jobs for people who have to be relocated from the project site.

The iron and steel complex and Son Duong deep water port will be built at a cost of USD 8 billion for the first phase. The iron and steel plant will have an annual capacity of 7.5 million tonnes and the Son Duong deep water port 30 million tonnes. In the second phase, the plant’s annual capacity will increase to 15 million tonnes.

Global crude steel production details for May 2008

World crude steel production for the 66 countries reporting to the International Iron and Steel Institute was 119.510 million tonnes in May 2008 up by 6.7% YoY as compared to May 2007.

The growth in crude steel production during March 2008 among regions was again led by Asia as usual.

In ‘000 tonnes
Source – IISI

Top 20 nations

In ‘000 tonnes
Source – IISI

Boulder to moves Australian project to Queensland

The Directors of Boulder Steel Limited advised that they have now confirmed their preference for Gladstone in Queensland as the new location for the Company's expanded Australian Project.

Boulder said that the project site has excellent infrastructure as it is close to the port, gas, power and rail. It added that the reason for this move is that the Ipswich location is not large enough to accommodate the expanded project.

The release added that “In order to ensure the quality of the steel to be produced and to further reduce production costs, a pig iron plant has been added to the project scope. The pig iron plant will significantly enhance the project returns.”

Venezuela Vhicoa strike comes to an end

BNamericas reported that employees at local steel structures manufacturer Venezuelan Heavy Industries have ended a strike that began in early May.

Mr Julián Rojas an employee of Vhicoa said that "He called a technical committee where we had to reach an agreement with the company within 15 days."

He said that the committee addressed several issues including a 30% salary increase proposed by president Mr Hugo Chávez, a contract review, industrial safety and a one time special bonus of VEB 500.

The strike affected development of several government works including a rail viaduct, tankers for state oil company PDVSA, construction of iron ore concentrators and a new bridge over the Orinoco River.

Vhicoa, located in Puerto Ordaz city in southeastern Bolívar state, has nearly 800 employees and is undergoing a USD 5 million expansion that will take installed capacity from 3,000 tonnes per month to 4,000 tonnes per month.

Brazilian automakers post record sales output in June

Reuters reported that Brazilian automobile manufacturers produced and sold a record number of new vehicles in the H1 of 2008. According to auto manufacturers' association Anfavea, Anfavea increased disposable income among Brazil's middle class and poor have been driving an economic boom.

The association said that domestic sales up by 30% over January to June of 2007 to 1.41 million units. In June alone, sales rose 5.8% from May and jumped by 28.8% from the month a year ago to 256,000 units. It said that production of new cars rose 21.3% in the first half over a year ago to 1.68 million units, while June output rose 4.8% from May and 23%h from the same month a year ago to 303,800 units.

Anfavea said it expects strong results from the automotive sector to keep sales and output in record territory through the end of 2008. It added that sale of light cars with flex fuel motors, which can run on any combination of gasoline or ethanol, has been the driving force behind the strong performance in the sector. Those sales accounted for 87.5% of all new car sales in June, compared with 87.6% in May and 86.2% in June 2007.

Blaze Recycling opens Marietta yard

Recycling Today reported that Blaze Recycling & Metals LLC, headquartered at Norcross in Georgia, has opened its new yard in Marietta. The yard began trading nonferrous metals in late June, with ferrous trading beginning shortly thereafter.

Mr Gary Blase co president & co CEO of Blaze said that “We are excited to enter the commercial market of Marietta and the surrounding area of Northwest Georgia. The facility will provide local scrap dealers with the opportunity to sell directly to a metal shredding company.”

He continues that “This is our sixth operational facility and by the end of the summer, we expect to be operating at least seven facilities with the opening of our Montgomery facility.”

Mr Blase said that including the operations of Florida based Ocala Recycling, recently acquired through Blaze Metals LLC, Blaze Recycling’s parent company the combined companies have nine facilities and two auto shredders, with the installation of a third to be completed soon.

Blaze is a full service metal recycler operating in the Southeastern United States. The company currently operates six scrap yards in the Georgia cities of Norcross, Griffin, Gainesville, Lawrenceville and Marietta as well as a yard at Phenix City in Alabama that purchase ferrous and nonferrous scrap metal.

Kemikovtzi sued for EUR 350 million by Bond Trustee - Report

Bloomberg reported that Bulgaria's biggest steel mill Kremikovtzi AD was sued for about EUR 350 million by a bond trustee that accused the company of failing to abide by the terms of a note.

According to the trustee Law Debenture Trust Corp, Kremikovtzi did not pay interest to note holders and was notified three times from March through May that the breach made the bonds immediately payable.

According to the claim filed June 6, Law Debenture trustee for Kremikovtzi's seven year 12% notes due 2013, is seeking the EUR 325 million principal amount of the notes plus EUR 23.2 million of interest, which is accumulating at EUR 108,322 a day.

The claim also said that Kremikovtzi also did not supply an independent audit certificate last year. The claim said that “The auditors were not able then to satisfy themselves that reported balances in the financial statements were properly recorded and valued.”

Kobe Steel plans USD 93 million lignite research site - Nikkei

Nikkei English News reported that Kobe Steel Ltd is planning to invest more than JPY 10 billion (USD 93 million) to build a facility in Indonesia that tests the feasibility of refining low grade coal for power generation.

Nikkei reported that the plant will research whether lignite, or brown coal, can be refined into a cheaper fuel source for power mills. It said that lignite's tendency to self combust and its 30% to 50% water content make it unsuitable for generating heat.

Nikkei added that Kobe Steel expects to complete the facility by October and plans to build a processing plant that will produce 2 million tonnes a year of refined lignite as early as 2010.

Gerdau creates permanent environmental reserve

It is reported that Gerdau Group has just created another permanent environmental reserve in Brazil. The reserve is the product of the collaboration between Gerdau and the Minas Gerais State Environmental System via the State Forest Institute.

The 1,247 hectare area is located at the Ouro Branco Mountains in Minas Gerais and is home to endangered species of plants and wild animals, like the maned wolf and the Brazilian porcupine. The RPPN is located at the foot of the Ouro Branco Mountains in Minas Gerais, and borders the zero mile marker of Cadeia do Espinhaço. The reserve is covered by the typical Atlantic Forest transition vegetation.

Rare species of Brazilian plants can be found in the reserve, like Vriesea minarum, a plant in the bromeliad family listed as endangered in Brazil. Dyckia ourobrancoensis was also discovered in the reserve, a plant found only on the walls of the Ouro Branco Mountains. Studies on this species are being published in the North American scientific magazine titled “Journal of the Bromeliad Society”. Additionally, Aspilia caudata was located in the reserve, a type of daisy previously found only at the Itacolomi State Park, in the outskirts of Ouro Preto. The area holds the main water springs supplying the Soledade reservoir, as well as wild animal species like the maned wolf and the Brazilian porcupine.

The Private Environmental Reserve Luis Carlos Jurovsky Tamassia is a voluntary initiative undertaken by Gerdau. Furthermore, it is permanent and irrevocable in nature, according to the Brazilian System of Conservation Units. The initiative seeks to help protect and maintain the area's biological diversity, and reinforces Gerdau's commitment to the conservation and sustainable use of natural resources.

Mr André Gerdau Johannpeter CEO of Gerdau Group said that “The creation of this reserve is an important contribution to the conservation of the animals and plants in the Brazilian savanna, and will enable scientific research and environmental education activities to be carried out.”

Call for making Sidor negotiations open to public

BNamericas reported that negotiations between the Venezuelan government and steel group Ternium to determine compensation for Sidor's nationalization should be open to the public.

Mr Pedro Rondón a board member and representative of class B shareholders held by company workers told BNamericas that "There should be a data room or due diligence so the Venezuelan government shows the public in a clear and transparent way Sidor's assets and how much they cost.”

Mr Rondón said that the Venezuelan government has until July 12 not June 30, as Mr Chávez said to take over Sidor operations. He said that "Nationalization was announced on April 9 and it was published in the official gazette on June 12. There, it indicates that the parties have one month to reach an agreement and establish the terms and conditions for a possible equity share.”

The deadline set by Mr Hugo Chávez president of Venezuela to transfer the Sidor steel plant to state control expired on June 30. The Ternium group, which controlled 59.7% of the company, is still in talks with the government regarding compensation. The official gazette also establishes that the parties can request an extension after that date adding that Ternium's Argentine executives withdrew from the Sidor plant on June 27.

According to the latest press reports, the parties may have already agreed on a price of USD 2 billion and Ternium might keep a 10% stake in Sidor.

China influencing global trends for steel

A steel user, however big or small, is always concerned about steel buying as it is normally a big ticket item, but there is no bench mark available to steel buyers to compare their transaction prices, which in a big way decided their bottom line. Lastly, steel has been very volatile in last 6 months and has effected many users in a very severe way making it all the more important to track the prices and trends.

www.steelprices-china.com is a new portal that provides domestic pricing information for benchmark steel products in each category at select location in China on a regular basis 5 days a week. In addition, FOB levels for commonly exported steel products from two of the major exporting nation Ukraine & Russia and China are also available on daily basis to give a sense of alternates.

This would assist persons, including steel makers, traders, users and others, who are connected with industry in some way to asses the steel pricing trends and utilize in their day to day working to take considered decisions.

Benchmark products at select locations cover the entire basket of garden variety of steel products including input material for steel making and processing.

All these features are accessible only to registered user who is provided with a login id and password after payment is received. To know more about the service, please logon to the web site and click on “Features”, “Subscription” and if you like the service on “Registration”.

www.steelprices-china.com is developed and run by none other that www.steelguru.com, which has become the largest English based steel portal in the world, with more than 1 million page hits per month in just 3 years of operations.

Renault sees huge steel cost pressures in 2009

Bloomberg reported that France's second largest carmaker Renault SA is facing increased costs for raw materials and energy next year.

The report quoted Mr Carlos Ghosn CEO of Renault SA as saying that steel costs will rise EUR 1 billion (USD 1.6 billion) in 2009, the same increase as between 2006 and 2008.

He added that “So far consumers have not seen much of it. They will see more of it gradually.''

Imarex Q2 freight derivatives up by 32% YoY

It is reported a total of 127 796 freight derivatives lots were traded at Imarex in the Q2 of 2008 up by 32% YoY as compared to Q2 of 2007.

As per report a total of 6130 transactions were recorded during Q2 of 2008 with contracts worth USD 6 billion traded via Imarex and NOS Clearing. The value of dry bulk FFAs rose 103% to USD 3.3 billion with a 96% increase in the number of transactions recorded compared to Q20

Highlights of Q2:
1. Tanker FFAs rose 60% to 73 million tons in Q208 compared to Q2 of 2007. Number of transaction rose 64% and the notional value of Tanker FFAs traded rose 85%.
2. The volume of freight options traded rose 55% to 14 200 lots in Q2 of 2008

Mr Herman Michelet CEO of IMAREX in Oslo said that “With both the tanker and dry bulk markets in good health, our volumes have soared in the last quarter. The Imarex electronic trading screen handles the absolute majority of all these trades, making it the only really successful trading screen for freight in the market.”

Bulgarian Lead and Zinc Complex cuts output guidance

Bulgaria second largest lead and zinc smelter, Lead and Zinc Complex said that it has cut its 2008 lead output guidance by 15.6% to 25,000 to 27,000 tonnes due to maintenance and an unfavorable global market.

As per report Intertrust, the majority holder, plans to keep its zinc output target at 27,700 tonnes up from 25,744 tonnes it produced in 2007.

In December, Lead and Zinc Complex expected to raise lead production to 32,000 tonnes in 2008, up from 26,839 tonnes it produced the previous year.

Recession reports - Subprime crisis could break Q2 for UBS

Swiss banking giant UBS, which had been hit hard by the subprime crisis, said that it would break even or report a slight loss for its second quarter thanks to a substantial tax credit.

In a statement, the bank said that its second quarter results are likely to be at or slightly below break even marking a sharp contrast from its massive first quarter loss of CHF 11.54 billion (USD 11.25 billion).

It added that “A tax credit of approximately 3 billion Swiss francs would help boost its accounts for the quarter ending June 30th 2008 Meanwhile positive contributions from its wealth management and asset management divisions also offset a loss in the investment bank division.”

In an announcement ahead of its scheduled earnings report on August 12th 2008, the bank said that its investment bank division continued to post losses and asset write downs due to further market deterioration. However, its wealth management and asset management divisions had offset the impact.

The bank also revealed that money outflow was most pronounced in April, but that there was an improvement in May and June. It added that it expected its Tier 1 capital ratio a measure of capital adequacy to reach approximately 11.5% at the end of the quarter and that it did not need to raise new equity.

Royalty increase would start at USD 90 per barrel - AHN

BNamericas quoted Mr Armando Zamora director of hydrocarbons regulator ANH as saying that the potential royalty increase in Colombia would begin when oil prices are USD 90 per barrel or above.

According to Mr Zamora, the potential increase would give the government an additional 1% share at USD 90 per barrel and go up to a maximum 5% increase if oil prices were to hit USD 180 per barrel.

Mr Zamora said "It would be a marginal increase for very high prices, increasing the government's take gradually.” He added that the increased stake would go up by 1% in increments of USD 30 per barrel.

Mr Zamora said that the government has not approved an increase and that discussions are ongoing.

Colombian authorities have been evaluating a possible royalty hike to help subsidize the rising cost of fuel on domestic markets. But some analysts and local producers are worried that any such increase could stain the country's positive image with E&P investors.

Rautaruukki wins EUR 9 million Swedish bridge order

Rautaruukki will supply and install steel superstructures for Partihallsförbindelsen bridge in Gothenburg in Sweden. The bridge will be 1.2 kilometer long and it is located between Ånäsmotet by the road E20 and the new traffic junction in Marieholm by the road E45. The contract is valued at around EUR 9 million.

The bridge is part of the Swedish Road Administration's Partihallsförbindelsen road project, which is the most important road project in Gothenburg area at the moment. Ruukki will work closely in cooperation with the main contractor, Skanska Sverige AB and the bridge designer Ramböll Sverige AB.

Mr Anders O Johansson deputy regional manager from Skanska said that Skanska considered Ruukki as being able to handle challenging installation and deliveries in very demanding traffic environment with a tight timetable.

Delivery and installation are scheduled for 2009-2010. Delivery consists of 2200 tonnes of steel structures, which will be fabricated and installed by Ruukki.

Steel coil service centre coming up in Karachi

Business Recorder reported that Assemco Pakistan Private Limited, a JV of Assemco Korea, Cottage industries UK and Aftab Technologies Pakistan, has set up first steel coil service centre in Karachi.

The project will attract a foreign investment of USD 3 million and will come into commercial operation by early in 2009.

A team of local bankers has recently visited South Korea for due diligence of the project and financial close is expected soon.

MDC inks deal with Hadeed for metals factory in Jordan

Trade Arabia News Service reported that Ma'an Development Company has signed an agreement with Hadeed Emirates Construction to develop a metals factory within the Industrial Park of the Ma'an Development Area. Mr Samir Dabbas CEO of Hadeed Emirates Construction and Mr Mohammad Turk CEO of South Company for Construction & Development have signed the MoU.

The project will be the first of its kind in the Kingdom and will cater to the growing construction and real estate sector in Jordan and the region. It is in line with King Abdullah II's vision to develop and foster the economy of the South of Jordan.

As per the agreement, Hadeed Emirates Construction will establish the factory over 50,000 square meters of land. The factory will be developed in two phases and will, upon its opening, include production lines requiring an operating staff of more than 250 employees, creating new job opportunities for the residents of Ma’an and boosting economic activity in the governorate.

Mr Turk said that "MDA aspires to become the regional hub for industrial investments and the manufacturing of construction materials. We are honored to be collaborating with Hadeed Emirates Construction and having them join as a new member of the MDA Industrial Park."

He added that MDA seeks to continually focus its efforts in attracting new businesses and investors with its goal set to raise the quality of living in Ma'an and to assist the residents of the South of Jordan in achieving their ambitions.

Zamil clinches USD 21.4 million cooling contract in Saudi Arabia

Trade Arabia News Service reported that Zamil Air Conditioners has been awarded multiple contracts worth SAR 80 million to provide custom climate control systems for King Abdullah University of Science & Technology in Saudi Arabia.

Under the deal, Zamil will supply a large number of concealed fan coil units, air cooled condensing units, single skin air handling units, ducted split systems, 3,000 sets of water chilled fan coil units, and 21 sets of custom built TW Series double skin air handling systems.

Units of the TW Series measure 17.6 meters in length and 5.6 meters high, and feature top quality galvanized steel GI outer skins and specially designed aluminum inner skins with a thick bottom panel. The units also feature special dampers, coils, fans, energy wheels, sound attenuators and filters and a control system capable of monitoring and controlling temperature, enthalpy, airflow, humidity, pressure and CO2 levels. The total cooling capacity for the project is more than 16,500 tonnes.

Mr Ahmed Zaatari GM of Zamil AC said that "KAUST is truly a landmark undertaking for us as the competition for the contracts included the world’s best providers of air conditioning systems. Zamil AC emerged winners only due to its unique ability to satisfy the most stringent climate control specifications and timeline requirements."

Pakistan to facilitate investors in power sector

The News quoted Mr Raja Pervez Ashraf Pakistani minister for water & power as saying that the government is fully determined to provide a feasible and simplified procedure for investors to attract more investment in the power sector.

Mr Ashraf said that the government would be able to generate 6,000 MW of additional electricity to be added to the national grid system by the end of next year. He stressed the need to complete the task on war footing basis in order to ensure the operation of these plants within the prescribed time frame to eliminate load shedding.

He was of the view that there should be more conducive environment and investor fri