JFE will not up hike stake in JSW Steel - Mr Seshagiri Rao

Thursday, 23 Feb 2012

CNBC-TV18 reported that Mr Seshagiri Rao the joint MD and group CFO of JSW Steel has told that there is no plan today that JFE will increase their stake in JSW beyond 15%.

During an interview with CNBC TV18, while answering to question “Debt levels still remain quite high and JFE Steel a couple of weeks back raised some stake in your company. Now that they have the headway to go all the way up to 25%, is that an option that you may consider in order to bring in higher participation from them and perhaps more cash as well to de-stress the balance sheet”, Mr Rao said “Today, the balance sheet of JSW is not stressed at all. If we look at the overall consolidated debt as on December 31, it was 1.08:1. This is taking into account the FCCBs which we raised as debt only. So balance sheet wise we are quite okay.”

He added “We have 11 million tonne installed and an operating capacity as part of JSW. We don't need any additional equity to come into the company. As per the current agreement with JFE, their overall equity holding is restricted to 15%. They have recently enhanced only to reach the 15% threshold. Otherwise, there is no plan today that JFE will increase their stake in JSW beyond 15%.”

(sourced moneycontrol.com)

Essar Steel ramps up Hazira steel unit capacity to 10 mtpa

Thu, Jan05, 2012

HAZIRA (GUJARAT): In an era where low-cost is the buzzword, Essar Steel has more than doubled the capacity of its Hazira steel plant from 4.6 million tonnes per annum to 10 mtpa at an investment of USD 7.5 billion, less than half the industry standard for setting up a facility of this size.

"It took USD 7.5 billion to create a 10-mtpa fully-integrated steel-making facility at Hazira. The investment includes raw material beneficiation, steel-making and distribution. The industry standard is more than twice for putting up a 10-mtpa capacity alone," Essar Group Chief Executive Prashant Ruia told reporters here today.

The plant will have the capability to manufacture steel at a low cost through a series of cost-cutting measures.

Essar Steel began its journey at Hazira in 1989 with a 0.9-mtpa sponge iron-making plant and in the passage of 22 years, gradual expansion of capacity has made the facility one of the top four flat steel producers in the world at a single location.

"We would like to dedicate this plant to the nation. When I first ventured into Hazira, it was my desire to put India on the global steel map and today that dream has come true. Our world-class steel complex is a testament to the hard work put in by the Essar family and our small contribution to the steel industry and India's growth story," Essar Group Chairman Shashi Ruia said in a statement.

The company is already among the lowest cost steel producers in the world through raw material and energy securitisation, Prashant Ruia said, adding that operational efficiencies, throughput enhancement and asset optimisation would move it further down the cost curve.

The Hazira facility combines a DRI, blast furnace and corex technology for making iron, which is later used in the steel-making process through electric arc furnaces. The advantage of having such a combination is that there is no wastage of gas generated through the corex iron-making technology.

As a result, the company generates almost 45 per cent of its captive requirement in the gas-based DRI. Essar Steel has a long-term contract with ONGC for the rest of the gas requirement.

"The cost of labour for per tonne steel-making is just USD 8.2 per tonne. This is only second to USD 5.71 for Baosteel. Even Posco's labour cost for per tonne steel production is higher than us at USD 9.22," Ruia said.

Ruia said the plant is expected to run at 80-85 per cent capacity in the next fiscal and 70-75 per cent of the output would be value-added products, the demand for which is on the rise on account of the fast-growing automobile and FMCG sectors.

(sourced ET)

ArcelorMittal CEO Mr LN Mittal sees a long way to go for steel plant in India

Friday, 04 Nov 2011

BS reported that ArcelorMittal said the company still has a long way to go in India before it takes a final view on the construction of the proposed steel plants.

Mr LN Mittal president & CEO of ArcelorMittal while declaring Q3 results did not sound very enthusiastic about the progress of the company in India.

In a select media call, he said “We have got mining leases & licenses, which are in different stages of progress. Some are prospecting licenses, some are exploration, but we haven't got mining operation approvals yet.”

He said the mining allocations to ArcelorMittal were done long before so there was some progress.

He told “But it's still a long way to go before we take a final view on construction.”

The company has been eyeing countries like Brazil and India for expansions and its growth drivers in newer markets. However, the market uncertainties have forced it to cut down on its planned steel investments.

All this is happening at a time when the company is yet to make any significant investments in India even after signing MoUs with state governments as early as 2005. Mr Mittal, last year, had said the company was looking to build smaller modules of steel plants in the emerging markets.

(source Business-standard)

Tata Steel Europe continues to invest in South Yorkshire, UK operations

Sat, 22 October 2011

Tata Steel Europe, a part of India-based steelmaker Tata Steel, has announced that it is investing a further £4.5 million in its South Yorkshire, UK operations to improve plant reliability and energy efficiency, reduce CO2 emissions and boost production of high-value steel products.

According to the Tata Steel Europe statement, the investment will be made in four separate projects at the Rotherham and Stocksbridge sites. An investment of £1 million in Thrybergh Bar Mill will improve product quality, without, however, increasing overall production at the mill. The £2 million investment in Rotherham for new equipment will reduce electricity usage by more than 9,000 MWh every year.

With more than £0.5 million to be invested in the Rotherham site's small bloom caster, the reliability of the caster will improve and breakdowns will be minimized. A £1 million investment in Stocksbridge is to improve energy efficiency, leading to a reduction in gas consumption. This will also result in reducing CO2 emissions by 2,000 metric tons and saving the company £250,000 a year.

Tags: longs , semis , UK , Europe , Tata Steel , investments , European Union
source steelorbis

SAIL to invest INR 20000 crore in West Bengal

Sunday, 11 Sep 2011

Mr CS Verma chairman of Steel Authority of India Ltd on Saturday reiterated his commitment to invest over INR 20,000 crore in West Bengal.

The investment plans include ongoing modernization and expansion programs at the Indian Iron and Steel Company plant in Burnpur, Durgapur Steel Plant and Alloy Steel Plant.

Mr Verma after his meeting with the state chief minister, Ms Mamata Banerjee told reporters that “IISCO's modernization with latest state of the art technology is in the advanced stage of implementation.”

The 2.5 million tonne plant of SAIL at Burnpur at an estimated cost of INR 16,000 crore is expected to be complete by June 2012.

The company has earmarked a sum of INR 3,000 crore to be invested in Durgapur Steel Plant and INR 1,000 crore for Alloy Steel Plant.

According to Mr Verma, SAIL's proposed wagon making factory at Kulti in South 24 Parganas, is coming up at an investment of INR 200 crore.

(Sourced from BL)

Mining scam may hit steel investments

Wednesday, 10 Aug 2011

It is reported that dirty politicking in Karnataka has exposed the underbelly of the mining industry and also brought the iron ore industry to a standstill. The snowballing crisis could dampen Karnataka's investor friendly image and particularly affect investments in steel.

Steel companies had accounted for the major chunk of the INR 50,000 crore investments attracted by the state during the Global Investors' Meet in 2010.

Mr Basant Poddar VP of Federation of Indian Minerals Industries said that "Many companies are already rethinking on their decision to invest in Karnataka. Land acquisition and power are also posing big challenges."

Mr GVSB Reddy COO at mining consultancy Vajra Natural Resources said that even if the projects are not withdrawn, they are likely to be put on hold. With the ban on mining, they have good reason to seek extension for their projects.

India produces 65 million tonnes of crude steel, of which Karnataka accounts for 16 million tonnes.

The Bangalore Chamber of Industry and Commerce estimates that the suspension on iron ore mining in Karnataka would impact the national GDP as the sector has a 6.2% weightage in the Index of Industrial Production. With steel production down by 25% in Karnataka on account of the mining ban, BCIC says the GDP would be negatively impacted by 0.5% or USD 8.5 billion.

Iron and steel shortage would lead to a cascading effect on the price of automobiles, consumer durables, construction and infrastructure. India imported 7 million tonnes of steel in 2010 and in the current scenario; it could lead to an additional import of 16 million tonnes.

A BCIC official said that "This will cause additional foreign exchange drain of USD 12 billion per year which is 3.9% of the country's current forex reserve. There will also be a loss of INR 10,000 crore annually to the state exchequer."

The ban on mining and exports has caused uncertainty for the around 100,000 directly employed people in these businesses.

(sourced TOI)

Italian plantmaker Danieli to boost its investment in China

August04, 2011

Italy-based Danieli & C Officine Meccaniche SpA (Danieli), one of the world's leading equipment plant suppliers for the metals industry, said it will significantly increase its investment in China to cash in on the growth in demand coming from the government's efforts to adjust the industry's structure.

The Italian company's total investment in China will reach €130 million ($188 million) by 2012, up from the current €80 million, Matteo Bavaresco, CEO of Danieli China, has told China Daily.

Mr. Bavaresco said the increase is due to the booming demand coming from increased steel production and China's steps to upgrade the industry to meet goals in energy conservation and emission reduction. He continued, "Now there is a trend of more and more small and medium-sized Chinese steelmakers coming to us because they also want efficient equipment to reach energy-saving and emission targets." He added, "For example, our direct reduction iron technology can cut about 50 percent of emissions, compared with traditional technologies."

Danieli China employs more than 1,000 people at its facilities in Beijing and Changshu, Jiangsu Province. It is a market leader in mini-mills, long-product casting and rolling plants, and among the frontrunners in the flat product and iron ore sectors. (sourced steelorbis)

FIIs trimming holdings in Indian steel companies - Report

Saturday, 23 Jul 2011 |By BL

BL reported that Foreign Institutional Investors, on concerns of a weak profit outlook for the steel sector, are trimming their holdings in Indian steel firms.

As per report, the April to June quarter saw FIIs reduce their holdings QoQ in almost all steel firms including Steel Authority of India Limited, TATA Steel, JSW Steel, Jindal Steel & Power Ltd and Godavari Power & Ispat Ltd etc.

The report added that the shares dumped by FIIs have either largely been picked up the domestic institutional investors or non institutions, including individual shareholders.

The rising input costs such as coking coal and iron ore have hit the steel companies' bottom lines in the recent quarters. Analysts expect the pressure on profitability to continue in the July to September quarter as well.

Also, the inability of steel companies to pass the burden to consumers amidst an uncertain demand scenario will add up to the margin pressure. The recent hike in interest rates to curb inflation has cast a spell on the demand side. An analyst said that “There is a concern on demand side due to the slower pace of infrastructure projects. As a result, there is no pricing power with the steel producers.”

Steel makers have seen a slowdown in demand to an extent from sectors such as automobile, consumer durables and construction. While the global steel prices have seen a margin decline in the recent past, the domestic producers have managed to hold on to prices at this point in time.

ArcelorMittal now plans small units in India - Report

Friday, 25 Feb 2011

PTI reported that peeved at little progress made in its big ticket India projects, the world's largest steel producer, ArcelorMittal is now evaluating options of building small plants in the country with an investment of USD 1.5 to USD 3 billion each.

ArcelorMittal in its annual report for 2010 said that “The company in the medium term intends to take a modular approach and also evaluate smaller projects in various Indian states, with potential individual investments estimated in the USD 1.5 to USD 3.0 billion range.”

The company said the decision is based on implementation challenges associated with large Greenfield projects. It also wants to diversify its initiatives in India.

ArcelorMittal had announced plans to set up 12 million tonnes per annum integrated steel plants in Jharkhand and Orissa at an estimated cost of over USD 10 billion each. In June 2010, The company had inked a pact with the Karnataka government for a 6 MTPA plant with a captive 750 MW power plant, at an estimated investment of INR 30,000 crore (USD 6.5 billion).

However, none of the projects could take off due to regulatory and other hurdles like land acquisition, raw material security etc. Faced with land acquisition problems, the company even had to shift the site of the proposed project to Bokaro in Jharkhand from Khunti-Gumla.

The company said that "Implementation of these projects has been delayed for various reasons, including challenges relating to securing necessary mining rights, land and construction permits and regulatory approvals.”

(Sourced from PTI)

Acomar to invest USD 50 million in new steel mill

Saturday, 29 Jan 2011
BNamericas reported that Paraguayan company Acomar, which makes and sells steel products, will invest USD 50 million in the construction of a new steel mill.

Mr Juan Alberto Acosta GM of Acomar told BNamericas that "It's a project that is already in the works, but there are still some issues that need to be resolved."
Until these issues are finalized, Mr Acosta said that he prefers not to speak in more detail about the project. He added that "I expect everything to be ready in a month and then more information will be released."

The new steel mill is designed to meet the high demand for rolled products on the market. The company's industrial installations total nearly 10,000 square meters, including a metallurgical service center and six machines working all day to supply the market with plates, structural tubes and structural profiles.

Acomar produces and sells products such as plates, tubes and metallic structures used in warehouses, silos, bridges, as well as parts for the motorcycle industry.(sourced:bnamericas.com)