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Karnataka farmers set for legal fight over land usage change by ArcelorMittal

Deccan Chronicle reported that the Karnataka state government is likely to face the wrath of farmers who parted with their agricultural land for global steel giant ArcelorMittal's steel plant at Kudathini near here if it permits the Luxembourg-based steel behemoth set up a solar farm in the land allotted for steel mill.

With reports suggesting that CM Siddaramaiah is expected to consider Arcelor Mittal's request to change the use of 2,800 acres of land to set up a 600 megawatt solar power plant citing the bad patch the steel sector is passing through, farmers are gearing up to launch a legal fight against the state government.

Mr Darur Purushothama Gouda, district president, Karnataka Rajya Raitha Sangha said "Permitting Arcelor Mittal to change the use of land is nothing but a clear violation of the terms and conditions of the MoU entered into between the state government and the company. Farmers are sure to approach the courts against this move.”

ArcelorMittal inked the agreement in June 2010 at the global investors' meet organised by the Karnataka government to set up a 6 million tonne per annum steel plant Mr Gouda said, thousands of farmers of Kudathini, Veniveerapura, Haraginadoni and other surrounding villages have sacrified their source of livelihood to set up the steel plant.

Source: Deccan Chronicle
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Beursblik: combineren staaltak ThyssenKrupp en Tata Steel goed voor sector

ArcelorMittal kan profiteren van consolidatieslag volgens Morgan Stanley.

Een combinatie van de staaldivisie van ThyssenKrupp en Tata Steel IJmuiden zal gunstig uitpakken voor de Europese staalsector, waarvan ArcelorMittal onder andere de vruchten kan plukken. Dit schreven analisten van Morgan Stanley donderdag.

Nadat Tata Steel eerder dit jaar liet weten de Britse verlieslatende staalonderdelen te willen verkopen, ontstonden er geruchten dat het Duitse ThyssenKrupp en het Indiase Tata hun Duitse en Nederlandse staalactiviteiten zouden willen samenvoegen. Marktvorsers van Morgan Stanley zijn er niet van overtuigd dat dit scenario ook werkelijkheid wordt, maar als het zo ver komt, dan biedt dit de twee ondernemingen flinke synergievoordelen. Bovendien zou door deze fusie de noodzakelijke consolidatie in de sector goed op gang komen, aldus de Amerikaanse zakenbank.

ArcelorMittal zou één van de staalconcerns zijn die volgens de analisten kan profiteren van deze consolidatie. De marktvorsers rekenen vooralsnog op langzaam, maar geleidelijk herstel voor ArcelorMittal, terwijl een marktconsolidatie een aanjager kan zijn voor een vlotter herstel.

Morgan Stanley voorziet dat een combinatie van ThyssenKrupp en Tata flink in de kosten kan gaan snijden. De analisten berekenden dat iedere 5 procent aan synergievoordelen die worden behaald, grofweg 250 miljoen euro aan het resultaat voor belastingen zal toevoegen.

Risico's zijn er ook voor ThyssenKrupp en Tata. Analisten van Morgan Stanley vrezen dat de combinatie aan omzet zou kunnen verliezen, omdat klanten mogelijk niet te veel afhankelijk willen zijn van één leverancier en op zoek gaan naar een vervanger.

Het aandeel van ArcelorMittal verloor donderdag 1,2 procent op 4,30 euro op een groen Damrak.

Info@abmfn.nl

Redactie: +31(0)20 26 28 999

Copyright ABM Financial News. All rights reserved

(END) Dow Jones Newswires
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MrTurnbull and Mr Obama discuss global steel glut

AAP reported that Australian Prime Minister Malcolm Turnbull and US President Barack Obama have discussed the global glut in steel production in a phone call.

White House said in a statement "The two leaders also discussed the need to work together to address the global glut in steel.”

Source : AAP
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Steelworkers' union says Tata Steel is 'still responsible' for British Steel Pension Scheme

Scunthorpe Telegraph reported that the TATA Steel, which is selling of its UK assets, has been warned by the Scunthorpe industry’s main trade union Community the company is still ultimately responsible for the British Steel Pension Scheme (BSPS), which has been left to fill a GBP 455 million shortfall to meet its liabilities.

Mr Roy Rickhuss, the national general secretary of Community, said of the Excalibur decision: "As far as we are concerned this is still speculation about the implications for the pension scheme and is just the view of one potential buyer. Potential buyers are far from the only stakeholders and Tata Steel is still ultimately responsible for the British Steel Pension Scheme. There is a long way to go in the sales process and concrete proposals need to be brought forward. We are keeping a close eye on the situation as regards the pension scheme and are in dialogue with the BSPS, Tata and the Government. We are determined to uphold the best interests of our members throughout this process."

The warning came after Excalibur Steel, one of seven bidders for the remainder of the Tata UK operation, ruled out taking over responsibility for the fund which has been running since 1967 and has an estimated 20,000 stake-holders in Scunthorpe.

The 3,500 Tata Steel employees in Scunthorpe have added to the problems of the pension fund, which predicts a GBP 60 million drop in contributions this year, following their switch next month to a new defined contribution scheme run by Legal and General.

Source : Scunthorpe Telegraph
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SMDI recognizes Honda and Gestamp for use of AHSS steels

The Steel Market Development Institute, a business unit of the American Iron and Steel Institute, awarded the "Automotive Excellence Award" to Honda R & D Americas, Inc. and Gestamp for their work in implementing advanced high-strength steel (AHSS) innovations in a hot stamped rear frame. The award was presented today at the 15th annual Great Designs in Steel (GDIS) seminar in Livonia, Mich.

Shawn Crichley, principal engineer, vehicle design-body and Brad Klein, senior engineer from Honda R&D Americas, Inc. along with Kou Khang, platform director from Gestamp, received the award for their GDIS 2015 presentation, titled, "Special Presentation: Advanced High-Strength Steel Breakthrough Technology."

The goal of the project was to reduce rear frame mass and design complexity, while maintaining performance through implementation of hot stamped high-strength steel. The result was a 20 percent weight reduction compared to previous models and full realization of the rear frame crush mode.

"In 15 years of GDIS, winners of the Automotive Excellence award have demonstrated significant contributions to steel in the marketplace and the Honda and Gestamp project was no exception," said Jody Hall, vice president of the automotive market, SMDI. "The project implemented an innovative hot-stamping process with localized soft zones to create crush initiation sites. This combination allowed them to achieve mass reduction and reduce part count, while maintaining all performance metrics."

The SMDI Automotive Excellence Award recognizes individuals or teams from automakers, suppliers or the academic community who embrace innovation and make significant contributions to the advancement of steel in the automotive marketplace. Award winners are chosen from presenters at the previous year's GDIS seminar. Candidates are rated in several categories, including: challenges and benefits associated with cost, mass reduction and performance; overall contribution to the advancement of steel; and implementation in production.

Source : Strategic Research Institute
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Weak Q1 start is not trend for the year - Gerdau CEO

BNAmericas reported that despite Gerdau's weak first quarter results, profits tumbled 95% YoY, it is optimistic about prospects for the rest of 2016. The Brazilian steel giant's 14mn-real (US$3.96mn) Q1 profit followed a 41mn-real net loss reported for 4Q15, mostly on Gerdau's US operations.

CEO André Gerdau Johannpeter said in a results call “A traditional seasonality in the North American and Brazilian markets, together with the domestic political uncertainties and economic retraction, marked the first quarter of 2016. However, we understand that the negative impact caused by those factors does not represent a trend for the full year.”

Gerdau's US operations posted a 12% increase in sales for Q1 and the company's exports to North American subsidiaries rose 70% in the quarter.

Porto Alegre-based Gerdau is one of the largest suppliers of specialty steel in the world, with installed capacity of over 25Mt/y.

Source: BNAmericas
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Asia likely to dominate global steel scrap trade by 2020 – Technavio

Scrap Register reported that the global steel scrap market will be dominated by Asia by 2020, accounting for over 40 percent of global trade in the commodity by volume, as per the latest research by Technavio. Asia is expected to trade over 258 million metric tons of steel scrap in 2020, out of global trade totals of 633 metric tons, said the study.

According to the Technavio, one of the drivers for the growth of steel scrap as an input to the production of new steel in Asia has been the ban on nickel exports from Indonesia. Nickel ore is widely used for the production of steel in China, which is one of the largest consumers of steel. The ban on exports by Indonesia has led to a shortage of raw materials. Thus, the use of steel scrap as raw material for the production of steel is increasing.

In addition, the production of steel has expanded in several countries like Qatar, Saudi Arabia, and Kuwait. The sources of steel scrap are divided into three segments: obsolete scrap, prompt scrap, and home scrap. According to Technavio analysis, by volume, the global obsolete steel scrap market accounted for over 284 million metric tons in 2015. The global prompt steel scrap market accounted for a little over 134 million metric tons in 2015.

The Technavio report did not provide an estimate for the volume of home scrap. Advances in technology have significantly reduced the amount of home steel scrap produced over the years. Home steel scrap is generated within steelmaking mills and foundries and includes left-over pieces of steel from steelmaking, steel and iron recovered from slag processing, and rejected or defective products at the mill, such as side trimmings, crop ends, and other process-related yield losses.

Obsolete scrap is derived from post-consumer products of various industries after the end of product life. These industries include automobiles, appliances, ships, and bridges.

Source: Scrap Register
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Court suspends Usiminas upcoming board meeting

Reuters reporte that a Brazilian judge has suspended a Thursday board meeting at steelmaker Usiminas scheduled to select senior management, as a bruising boardroom fight continues to weigh on a difficult turn-around.

Usiminas, known formally as Usinas Siderurgicas de Minas Gerais SA and its shareholders Ternium SA and Nippon Steel have filed lawsuits in recent weeks challenging the right of steelmaker Companhia Siderurgica Nacional, or CSN , to name representatives on the Usiminas board.

Source: Reuters
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Ajaokuta Steel to come back on stream in 24 months – Minister

Vanguard reported that the Nigerian Federal Government has set in motion strategies to resolve the court action by Global Infrastructure on Ajaokuta Steel Complex to get it operational in the next 24 months. Minister of Solid Minerals, Dr Kayode Fayemi, who disclosed this at the Ministerial Town Hall meeting in Kaduna, revealed that Ukranians, Russians and Chinese investors have shown interests in the complex.

According to Dr Fayemi, the Ajaokuta Steel Complex is a priority of the administration which it stands ready to do whatever it takes to get on stream. He said “What we are doing, in order to revive Ajaokuta, is in two folds. One, Ajaokuta is caught in a legal conundrum and we will ignore the legal issues and say what we are more interested in is the reviving of Ajaokuta and making it work. It is a priority of government.”

He said “So, the problems at the concession was Global Infrastructure, an Indian company under the Obasanjo administration that was revoked under the Yar’Adua’s administration, is one that we are resolving with the Minister of Justice and Attorney General of the Federation. We are reasonably confident that in no time, maybe in the next six months, we would have been able to resolve that. Once we get rid of that, we will simultaneously negotiate with a range of players. There are many people who are approaching us that they can revive Akaokuta: the Russians, Ukrainians and the Chinese.”

He added “We are looking for the best option that would allow us get Ajaokuta back to work within the next 24 months.”

Source: Vanguard
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Who all are in the race for Tata Steel UK assets

Tata Steel has shortlisted seven potential buyers to the next stage of sale process. The expressions of interest were for the whole UK business. Bidders that only wanted part of the operations were not advanced.

While Tata Steel has not named the bidders, as per recent media reports following firms are reported to be in the race
1. Liberty House Group
2. Excalibur Steel UK
3. Greybull Capital LLP
4. Endless
5. JSW Steel
6. Hebei Iron & Steel Group
7. Nucor

Tata Steel announced in March it was considering the sale of its UK operations. The business includes its Port Talbot plant in South Wales along with other assets around the UK

Source: Tata Steel
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Southern Steel orders new casting strand from Danieli

A new casting strand, inclusive of electricals and automation, will be added to the existing 9-m radius 3/4-strand billet CCM The additional casting strand will complete the plant that was started up in 2005, when a Minimill with a capacity of 530,000 t/y of billets and 400,000 t/y of rolled products was supplied by Danieli on a turnkey basis to the state-owned Vietnamese steelmaking company.

The new supply includes all the key equipment necessary to produce square billets 120x120mm and 150x150mm in open-stream casting mode.

The contract was signed in March 2016 and the new casting strand is scheduled to become operational in February 2017.

Southern Steel Company is one of the major players in the Vietnamese steelmaking business, and is part of the Viet Nam Steel Corporation - a group that employs over 17,000 persons - with an internal billet production capacity of 1.5 mil. tons/year, and with a rolled steel-making capacity of over 2.5 mil. tons/year.

Source: Strategic Research Institute
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China commodities shakeout hits investors and threatens steel mills

Reuters reportd that only a month ago, Chinese commodities prices were skyrocketing, led by a stampede of speculative investors betting on early signs of recovery in the world’s second-biggest economy. Now, not only has the bubble been popped but a dive has left steel and iron futures 23 percent off their April peaks and in bear market territory. This in turn threatens to put the brakes on the restart of steel plants that became profitable as prices rose, as well as drive investors to other markets.

When prices shot up in April, Chinese commodities exchanges moved quickly to raise trading fees and push speculators to dial down trading positions, anxious to ensure there was no repeat of the boom and bust Chinese stocks suffered last year.

With steel prices falling sharply, the risk now is producers that reopened, dubbed “zombie” steel mills after being idled when prices slumped in recent years, will have to rethink. Mr Xu Zhongbo, head of Beijing Metal Consulting which advises Chinese steel mills, said “This month, some good mills are making money but their profits are dropping day by day. The half-dead steel mills that reopened will make big losses, they are uneconomic.”

Weighing on steel prices, inventories held by Chinese traders rose 1.2 percent last week to 9.2 million tonnes, after falling for the past eight weeks, said Kevin Bai of CRU consultancy in Beijing. Bai said “There have been a lot of reopened plants but demand has hardly improved. We think steel prices may still have some more downward pressure because of the supply response.”

Source: Reuters
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ArcelorMittal Ostrava commissions 13 new investments that will cut dust emissions to historic low

New technologies worth USD 84 million (CZK 2bnillion), the largest environmental investment made at the plant in the past five years, have been installed at ArcelorMittal Ostrava, in the Czech Republic. Czech industry minister Jan Mládek and environment minister Richard Brabec visited ArcelorMittal Ostrava on 10 May to officially commission 13 environmental investments at the steel plant, which produces more than 2 million tonnes of steel a year.

The new technology, which goes beyond European Union legislation requirements, will capture an additional 520 tonnes of dust emissions a year. Thanks to a 94-tonne drop in stack emissions, the plant’s overall particulate-based stack emissions are to be reduced to the lowest level in the history of the mill – to one quarter compared with 2003, when the Ostrava mill joined ArcelorMittal. The new filters also capture emissions of dioxins and benzo(a)pyrene.

As the technology installed takes the plant beyond EU emission requirements, ArcelorMittal Ostrava has received EU subsidies worth around US$67m (CZK1.6bn) to support the project.

The additional 520-tonne emissions drop includes both stack emissions (around 94 tonnes) and fugitive emissions, lowering the total annual particulate-based stack emissions to around 490 tonnes.

ArcelorMittal Ostrava – the 13 investments officially commissioned on 10 May 2016
Reducing emissions by modernising sinter plant de-dusting south
De-dusting of waggon tiplers, sinter plant north and south
De-dusting of cooling belts, sinter plant south
De-dusting of cooling belts, sinter plant north
De-dusting of cast house, blast furance 3
De-dusting of cast house, blast furanace 2
De-dusting of torpedo cars cleaning stations
De-dusting system for ore bridge loading trays
Reduction of fugitive emissions on material routes, sinter plant north
Increase efficiency of de-dusting on material routes, sinter plant north
De-dusting system for charging blast furnace 3
De-dusting system for charging blast furnace 2
De-dusting system for coke plant quenching tower

Source: Strategic Research Institute
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ArcelorMittal electrical steel data to be used in state-of-the art design simulation software

ArcelorMittal has announced its electrical steel data will be available to use in simulation software used to design electrical machines. The cooperation with JMAG, announced at the coil-winding expo CWIEME in Berlin today, offers a unique opportunity for electrical machine manufacturers to shorten the lead time of their new designs, reduce the number of prototypes and decrease overall development costs. It will also offer an in-depth look into the physics of cutting-edge electrical machine designs.

Explaining the significance of the partnership, Dr Takashi Yamada, product leader at JMAG said: “High quality material data is essential for our customers to make successful simulations. Obtaining genuine material information from leading steel manufacturers is one of the key drivers of our strategy. ArcelorMittal’s leading range of electrical steels, its geographical presence and its advanced engineering skills including material modelling for finite element analysis made it key for us to integrate them into our software.”

The two companies established their cooperation in 2015. The new simulation data allows a more efficient design of electric motors, generators and transformers.

Furthermore, using JMAG fosters communication between manufacturer’s engineers and ArcelorMittal R&D specialists, who can assist them with advanced material characterization data, an in-house loss model and expertise in areas such as mechanical behaviour, punching or machine assembly techniques.

Source: Strategic Research Institute
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ArcelorMittal Seeks to Buy Back Most Expensive Bonds to Cut Debt

by Sally Bakewell
t @sallybakewell1

May 11, 2016 — 5:58 PM CEST

ArcelorMittal SA offered to buy back its most expensive bonds, bolstering efforts to cut a $13.3 billion debt pile.

The world’s biggest steelmaker tendered for all $1.5 billion of 9.85 percent securities due June 2019, according to a statement. It offered 17 percent above face value and set a May 18 deadline for acceptances. The notes have the highest coupons among the company’s outstanding fixed-rate bonds, based on data compiled by Bloomberg.

The company is making its second offer to buy back debt in about a month after holders largely snubbed an April tender for short-dated notes. The steelmaker, which supplied metal for New York’s One World Trade Center and London’s Wembley Stadium, is seeking to cut borrowing costs as competition from China weighs on global prices.

“I think investors will be minded to participate because of weakness in high-yield metals bonds this month,” said Mark Wade, head of industrials research at Rogge Global Partners Plc in London, which manages about $36 billion. ArcelorMittal has “excellent liquidity” so it makes sense for the company to buy back costly notes, he said.

The company said it will fund the buyback with cash. It raised $3 billion in a rights issue last month and it has agreed to sell a stake in a Spanish auto-parts venture.

Chief Financial Officer Aditya Mittal said this month that global steel markets are improving, aided by rising prices in China. The comments came after the company reported a 33 percent drop in first-quarter earnings.

www.bloomberg.com/news/articles/2016-...
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Banks relieved with MIP benefits for Indian steel firms

Economic Times reported that several state-run and private banks can heave a sigh of relief, thanks to government's Minimum Import Price or steel which has boosted sales for domestic firms. The cash flows that have improved phenomenally for some steel companieshave saved them from getting an NPA tag.

ET report quite a private sector banker as saying that"We are seeing improvement in cash flows for companies like JSW Steel, Bhushan Steel, Essar Steel, JSPL and Tata Steel after introduction of the MIP and that is a positive for our books as well.”

He added “But, still a meaningful turn around will take some time."

Source : Economic Times
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Hyundai Steel leading earthquake resistant steel market

Korea Times reported that with frequent occurrences of large-scale earthquakes worldwide, including the most recent quakes in Japan and Ecuador that took many lives, construction materials to minimize or prevent earthquake damage are drawing attention throughout the world. The global steel industry thus has been focusing on developing products that have stronger resistance to earthquakes, and Hyundai Steel has been at the forefront of these efforts.

Source : Korea Times
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Tata Steel UK workers face 15% cut to pensions - Report

The Daily Mail reported that the pension of thousands of steelworkers could be slashed by 15 per cent as part of plans to save the UK steel industry. Business secretary Sajid Javid is considering the drastic proposal in the hope of saving GBP2.5billion and making the former British Steel pension scheme more attractive to potential buyers of Tata Steel’s UK assets.

Anyone taking on the pension scheme will have to pay off the debt and make regular contributions, which will jump from GBP 35 million to GBP 60 million next year. Such large sums make a rescue of the loss-making business financially impossible.

Seven possible buyers have made bids for the 11 UK steel plants being auctioned by India’s Tata. But it is thought many of them are unwilling to take on the British Steel pension scheme which has a GBP 485 million black hole and 134,000 members.

Javid’s proposal would see the rate at which pension benefits build up switched from the higher inflation rate of retail price index to the lower consumer price index which is favoured by the Government.

Effectively, over time, this could mean that pensions are worth 15 per cent less than if they had been building up at a higher amount.

Source : The Daily Mail
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quote:

voda schreef op 13 mei 2016 15:02:

Tata Steel UK workers face 15% cut to pensions - Report

The Daily Mail reported that the pension of thousands of steelworkers could be slashed by 15 per cent as part of plans to save the UK steel industry. Business secretary Sajid Javid is considering the drastic proposal in the hope of saving GBP2.5billion and making the former British Steel pension scheme more attractive to potential buyers of Tata Steel’s UK assets.

Anyone taking on the pension scheme will have to pay off the debt and make regular contributions, which will jump from GBP 35 million to GBP 60 million next year. Such large sums make a rescue of the loss-making business financially impossible.

Seven possible buyers have made bids for the 11 UK steel plants being auctioned by India’s Tata. But it is thought many of them are unwilling to take on the British Steel pension scheme which has a GBP 485 million black hole and 134,000 members.

Javid’s proposal would see the rate at which pension benefits build up switched from the higher inflation rate of retail price index to the lower consumer price index which is favoured by the Government.

Effectively, over time, this could mean that pensions are worth 15 per cent less than if they had been building up at a higher amount.

Source : The Daily Mail
Helemaal gek daar bij Tata... Hier... www.energievergelijking.nl/extra-werk... Goedkopere energie voor een kleinere staalindustrie in de toekomst,maar met een sterkere concurrentie kracht... Schoner.. Vervangende banen.. Stimulans voor de nog resterende staal industrie.. (Aanlevering staal voor molens... ) Wat Duitsland kan kunnen Engelsen ook,maar dan moet je wel willen..
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Metalloinvest and ISH ink long-term iron ore concentrate supply agreement

Metalloinvest has signed a RUB 6.8 bn agreement to ship iron ore concentrate of the highest grade with iron content of up to 69.5% to Industrial and Steelmaking Holding. Prices take into account changes in market conditions.

In 2016, Metalloinvest started sales of high-grade products with a low silica content and increased iron content. These product characteristics ensure an increase in output capacity at steel furnaces, lower energy costs and costs of electrodes for electric arc furnaces, and an improved efficiency of blast-furnace production due to a higher Fe-content in the furnace charge and lower slag ratio.

According to the agreement shipments of high-quality concentrate from Lebedinsky GOK (part of Metalloinvest) to Tulachermet (part of ISH) are executed from 1 May 2016 to 31 March 2018. The agreement is another step in a series of Metalloinvest’s long-term agreements with Russian steel producers to supply iron ore products.

Metalloinvest is able to deliver higher quality products to steelmakers as a result of renovation works at Lebedinsky GOK’s benefication plant. The new equipment installed at the plant has enabled the enterprise to increase output of high-grade iron ore for internal needs, as well as produce additional types of products for sale.

Source : Strategic Research Institute
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