Revyakino Metal Rolling Plant commissions new continuous reheating furnace

Wednesday, 02 Feb 2011

It is reported that the Russian long steel producer Revyakino Metal-Rolling Plant has commissioned its new continuous reheating furnace which will allow the plant to increase its long steel product output from an average of 24,000 tonnes to 35,000 tonnes per month and also to reduce production costs. This output volume is planned to be reached in May this year.
Revyakino supplies about 50% of its products to construction sites in Russia's Central Federal District with about 90 percent of product supplies directed to the Moscow region.
Igor Shischuk plant general director said "Russian rebar market capacity in 2010 amounted to 13.1 million tonnes. This year a growth of 7% to 10% is expected. The speed of delivery and increase of capacities will allow us to grow with the market."
As a result of the continuous reheating furnace commissioning, Revyakino intends to claim a share of about 40% of the Moscow rebar market.
For the first two stages of modernization which began in 2007, Revyakino invested RUB 2 billion. The further implementation of its planned investment projects will allow Revyakino to increase its output of long steel products to 500,000 tonnes per year by 2015.(sourced: steelorbis)

ArcelorMittal withdraws from the financing program of Valin Steel

Saturday, 29 Jan 2011
It is reported that Hunan Valin Steel Co Ltd finally released its non public offering plan after twists and turns. The issue price is set at 5.57 per share equal to the net asset value per share of 2009. And the number of the objects of the directional add-issuance is reduced from two to one, Hunan Valin Iron and Steel Group Co Ltd.

Early in 2008, Valin Steel had launched the directional add-issuance program, but had not gotten written approval from China Securities Regulatory Commission until last September end. The plan has been adjusted for several times and it was put off again and again owing to its stock price long moving below its slated directional add issuance price under the backdrop of government controls on steel sector and market recession.

More unfortunately, at the moment of the coming of the deadline of three months effective for the issuance, ArcelorMittal which agreed to acquire the incremental shares by cash withdrew from its earlier decision. Now, one company is left to take the bleeding deals, Valin Group.
The number of shares was once cut from 600 million set in 2008 to 550 million adjusted in June 2010 and now has again been trimmed to 278 million.

The closing price of January 26 posted at CNY 3.86 a discount of about 30.7% compared with CNY 5.57 the directional add issuance price. (sourced:21cnhr.gov.cn)