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Stelco revitalize plan supported by Ontario

The Globe and Mail reported that a plan to lift Stelco Inc out of creditor protection is backed by the Ontario government and one of the steel maker’s union locals, but another union local, the city of Hamilton and a former president of the company oppose the proposal.

A restructuring agreement backed by Ontario and local 8782 of the United Steelworkers union calls for Bedrock Industries Group LLC to lease the land the steel company’s mills are located on, pay off a secured debt owed to former parent United States Steel Corp., and provide money to partially finance pension plans and health-care benefits.

The deal will enable Stelco to “emerge as a stand alone steel manufacturer with a restructured balance sheet and sufficient liquidity so that it will be able to compete in challenging steel market conditions,” Ernst & Young, the monitor appointed by the Ontario Superior Court, said in a filing before a hearing on the plan scheduled for Thursday.

The restructuring proposal calls for Bedrock, a Miami based metals and mining company, to make a USD 30 million upfront payment to Stelco’s pension plans, another USD 10 million a year for the five years beginning Jan. 1, 2017, and USD 15 million annually for 15 years beginning in 2022.

Another upfront payment of USD 30 million will be made to finance health care and other benefits along with USD 15 million in annual contributions and 6.5 per cent of free cash flow to a maximum of USD 11-million.

Bedrock will make a USD 61 million (U.S.) payment to the Ontario Ministry of Environment and Climate Change to cover potential environmental liabilities and would pay off the USD 120-million (Canadian) secured claim held by US Steel.

If the deal is approved, the Bedrock purchase would end a saga that began with the takeover of Stelco by US Steel in 2007.

Source : The Globe and Mail
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Thai Bankruptcy Court approves debt restructuring for steel maker SSI

Reuters reported that Thailand's Central Bankruptcy Court has approved a business plan for Sahaviriya Steel Industries Pcl, Thailand's biggest steel maker, to restructure debts worth 69.2 billion baht (USD 1.94 billion). The court cleared SSI to implement the restructuring plan after some 91.90 percent of its creditors voted in favour in September

Progress on restructuring SSI's debt will be positive for the Thai banking sector as bank creditors will be able to reduce reserves related to SSI loans.

The Thai banking sector's bad debt rose last year after money lent to SSI and its UK subsidiary was classified as non-performing loans (NPLs), requiring lenders to set aside special loan loss provisions.

SSI UK went into liquidation in October 2015 after mothballing its Redcar plant in northeast England and cutting 1,700 jobs.

Krung Thai Bank, Siam Commercial Bank and Tisco Bank are three major creditors to report a surge in provisions after loans to SSI and its British unit turned into NPLs in the third quarter last year. The total debt claim was 69.22 billion baht, including 5.3 billion baht interest, and the plan involved debt-to-equity conversions and debt repayment to 13 groups of creditors, it said.

Under the plan, SSI will reduce its registered capital to 1.1 billion baht from 32 billion baht and then issue 10 billion new shares to some groups of creditors to convert debt into equity at 0.05 baht per a share. This will raise its registered capital to 11.1 billion baht.

Source : Reuters
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Meer voor Aperam, maar wat een mooie bijlage zeg!

Stainless Steel in Architectural Applications
Published on Fri, 16 Dec 2016

The first recorded use of stainless steel in the Architectural Sector of the market is the roof cladding of the iconic Chrysler Building in New York City,

Source : Strategic Research Institute
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Beursblik: UBS zet ArcelorMittal op verkooplijst

Koersdoel verlaagd naar 5,70 euro.

(ABM FN-Dow Jones) UBS heeft maandag het advies voor ArcelorMittal verlaagd van Kopen naar Verkopen en stelde het koersdoel eveneens neerwaarts bij van 5,80 naar 5,70 euro. Dit bleek maandag uit een sectorrapport van de Zwitserse bank.

Volgens analisten van UBS zullen de marges in de staalsector in 2017 opnieuw onder druk komen te staan, hetgeen door de markt nog wordt onderschat. Als gevolg zijn de marktvorsers negatief gestemd over de Europese staalsector.

De analisten verwachten dat de marges in de staalsector volgend jaar in het licht van dalende grondstofprijzen met maar liefst 17 procent kunnen krimpen. Bovendien zullen de staalvoorraden stijgen en komt er naar verwachting circa vier miljoen ton aan extra staal de markt op, omdat tijdelijk gesloten fabrieken weer operationeel worden. Dit zal de winstgevendheid van Europese staalproducenten onder druk zetten.

De marktvorsers noemde ArcelorMittal daarnaast een duur aandeel. De waarde van het aandeel reflecteert een lange termijn bedrijfsresultaat (EBITDA) van 74 dollar per ton, lager dan de 85 dollar per ton dat het bedrijf zichzelf voor de middellange termijn als doelstelling heeft gesteld. UBS stelde de verwachting voor het bedrijfsresultaat in 2017 met 15 procent neerwaarts bij naar 5,4 miljard dollar. Daarmee zit de bank 17 procent onder consensus.

De Zwitserse zakenbank verwacht voor ArcelorMittal wel hogere volumes, maar dat dit niet genoeg zal zijn om de margedruk als gevolg van de lagere grondstofprijzen op te vangen.

UBS zette vanwege de marktverwachtingen niet alleen ArcelorMittal op de verkooplijst, maar ook sectorgenoten ThyssenKrupp, Salzgitter en Voestalpine.

Op een groen Damrak koerste het aandeel ArcelorMittal maandagochtend 3,8 procent lager op 7,17 euro.

Door: ABM Financial News.

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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Judge dismisses Steelworkers and city objections to US Steel restructuring

The Hamilton Sepctator reported that a Toronto judge gave the go ahead Thursday for US Steel Canada to negotiate details of a restructuring agreement that could eventually see Bedrock Industries take over the steel company and lift it out of court-supervised creditor protection. Judge Herman J. Wilton-Siegel dismissed objections from the Steelworkers Union Local 1005 and the City of Hamilton saying there is still opportunity for negotiations to deal with their concerns.

At this stage no transaction is being approved, the judge noted. Instead the court is only granting terms of reference for an ongoing, complicated process to continue that may or may not land a final deal. And if a purchase agreement is reached for the company that is in the legal process of changing its name back to Stelco it would still require judicial approval at that stage.

The judge's order also grants the American Investment company Bedrock exclusive rights to negotiate and provide some compensation if no deal is reached.

A lawyer representing Local 1005 argued the restructuring plan should not be given any endorsement by the court because pensions and health care benefits obligations for retirees are not being sufficiently met. As well, there has not been enough time for union representatives to examine the plan as it now stands.

The city of Hamilton is irked that about USD 7 million in outstanding municipal taxes is not addressed in the plan so far. But Wilton-Siegel said issues by 1005, the city, and other stakeholders will be the subject of discussions over the weeks ahead.

Source : Hamilton Sepctator
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Essar Steel Minnesota renamed as Mesabi Metallics

News Tribune reported that a federal bankruptcy judge in Delaware has approved a new name for the company formerly known as Essar Steel Minnesota.

Mesabi Metallics was officially approved earlier this week as the new name of the still-bankrupt entity that controls a half-built but shuttered taconite mine and processing center in Nashwauk.

Mesabi Metallics is now controlled by a California investment firm, SPL Advisors, that is trying to broker a deal to pay off some of Essar's USD 1 billion debt, work out a payment plan for contractors owed money, and find about USD 800 million to finish the project now estimated at nearly USD 2.6 billion to complete.

SPL has until an April court hearing to package a deal acceptable to all parties. If approved, the company hopes to begin producing taconite, with 350 employees, by 2019.

There were no objections to the change filed in court. Judge Brendan Shannon noted that the company still must file its name change with the Minnesota Secretary of State's office.

Essar Steel Minnesota was an offshoot of the India-based Essar Group, which is now being sued by creditors for failing to live up to promises on the Minnesota project.

Source : News Tribune
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Union urges UK government to buy British with new Royal Navy ships

IB Times UK reported that GMB Union has issued a fresh call for the UK government to use British shipyards and steel to build new Royal Navy vessels.

Mr Dave Hulse a GMB official told IBTimes UK that "It sends out the right communication to UK manufacturing. Let's be honest, the steel industry is a big base of UK manufacturing.” The official said that "We've been in massive decline and we need a big boost. This shouldn't even be an ask, this should be put out to [to tender] to the UK steel industry for them to supply the steel."

The comments come after Defence Minister Mike Penning refused to commit to "buying British" for new Royal Fleet Auxiliary (RFA) vessels, which support Royal Navy ships with fuel, ammunition and supplies.

Me Penning told MPs on 12 December that "The [Sir John Parker] report last week stated that best value for the Navy is what we need to do, and we must make sure that shipyards bid for the work, and in previous times they haven't bid. Let's see what the bids are that come forward and see who wins."

But Mr Parker, the chairman of mining giant Anglo American, also told ministers that there was a "renaissance in shipbuilding in commercial UK shipyards....which the Ministry of Defence should seek to harness".

The government will respond to his independent report into defence procurement in spring 2017. The response will be called the National Shipbuilding Strategy.

Source : IB Times
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Bedrock gets court approval to become sole bidder for Stelco

The Globe and Mail reported that Ontario Superior Court has approved a deal that makes Bedrock Industries Group LLC the sole bidder for Stelco Inc., as the steel maker tries to exit more than two years of restructuring under the Companies’ Creditors Arrangement Act.

Judge Herman Wilton-Siegel approved the plan, which is supported by some key stakeholders, but opposed by others. Among the opponents is Hamilton local 1005 of the United Steelworkers union, whose agreement on amendments to its existing labour agreement is required before a deal between Stelco and Bedrock can be made final.

Bill Aziz, Stelco’s chief restructuring officer said in a statement that “Nonetheless, “we are closer to the stand-alone company continuing substantally all of its existing operations in both Hamilton and Nanticoke [Ont.].”

Significant work is still needed, Mr Aziz said before Stelco comes up with a final plan that will enable the company to emerge from CCAA protection. The deal is supported by the Ontario government and local 8782 of the USW, which represents workers at the steel company’s Lake Erie operations in Nanticoke. The city of Hamilton joined local 1005 in opposing the Bedrock plan.

Source : The Globe and Mail
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North China cuts coal and steel overcapacity

Global Times reported that Northeast China has managed to cut overcapacity in steel and coal ahead of schedule as annual GDP growth in the country fell to 6.7 percent in the first three quarters of this year.

According to industry data, China has set goals to cut steel and iron making capacity by 45 million tonnes and coal-production capacity by 250 million tonnes. With these goals completed, the nation's steel and coal industries regained a modest profit margin.
Liaoning Province, the only province to see GDP contraction in the first three quarters, has come in ahead in its annual target of cutting 13.27 million tons of coal capacity and 6.02 million tons of steel capacity, according to a statement the provincial government sent to the Global Times on Wednesday.

As of the end of October, Liaoning has closed 44 coal mines and reduced 13.61 million tons of steel capacity, said the statement. Meanwhile, 18 steel companies have slashed 6.02 million tons of crude steel production capacity and 600,000 tons of capacity for making pig iron.

The statement noted that the central government has provided funds of CNY 1.6 billion (USD 232 million) to help Liaoning government reduce overcapacity, and almost all the funds have been used to help settle laid-off workers.

Mr Li Hongwu, deputy public relations director at Benxi Steel, told the Global Times that Benxi Steel Group Co, a steel producer in Benxi, a major industrial city in the province, has learnt to adopt the model of "production on demand" this year to "reduce cost and increase profit.”

The corporation used to produce steel to maximum capacity and stockpile the extra in its warehouse, but now it only operates after receiving orders, Li said, without disclosing exact numbers.

Source : Global Times
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Steel making in Wales faces dark times if workers don't agree to our proposals - Tata Steel UK

Wales Online reported that Tata Steel UK bosses have told Labour AMs that a failure to approve the deal agreed between them and trade unions representing steel workers recently would leave steel making in Wales facing dark times. AMs representing areas heavily dependent on the steel industry met with Bimlendra Jha, chief executive officer of Tata Steel UK, last week.

Aberavon AM David Rees, Newport East AM John Griffiths and Llanelli AM Lee Waters told the senior Tata executive that faith in the company among workers has been severely shaken by the uncertainty over the last year and the aborted decision by the company to put UK steel up for sale including the works at Port Talbot, Llanwern, Trostre and Shotton.

Mr Rees said “Many steel workers are unhappy with the changes to the pension scheme, but it was clear from our conversation that without the change the company will face difficult times ahead with a possible outcome of the existing pension fund having to go into the protection fund due to the failure of the Westminster government to take action. This will have a major impact upon all in the scheme. It is important that we secure steel making in Wales and that workers’ pensions are protected and we must all work hard to reach that objective.”

Mr Waters added: “Steel workers are being presented with something of a Hobson’s choice - take a cut and give the plants a guaranteed future for five years, or vote against and risk the company going into any joint venture in a more weakened state, which could result in workers being forced to take a hit on the pension fund anyway.”

During the discussion with the AMs, Tata’s management set out its commitment to keep the UK plants open by investing in the sites in exchange for further efficiency and productivity gains.

Earlier this month Tata and the unions agreed a package of proposals that would see the company invest £1bn in its UK steel sites over the next 10 years and keep the blast furnaces at Port Talbot operational until 2021. The deal was conditional on the British Steel Pension Scheme being closed and replace with a defined contribution scheme, and also on productivity and efficiency gains at Tata sites.

Source : Wales Online
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Japanese steel output to rise next financial year - JISF

Reuters reported that Japan’s crude steel output in the financial year that starts next April is likely to rise from around 105.5 million tonnes in the current year, helped by solid demand in automobile and construction segments.

Mr Kosei Shindo, the chairman of the Japan Iron and Steel Federation, told a news conference “Steel output is expected to grow next financial year as domestic demand will pick up on the back of increased output by automakers and other manufacturers.”

Mr Shindo, also president of Nippon Steel & Sumitomo Metal Corporation, said Japan’s biggest steelmaker expects coking coal prices to stay at high levels of around $285 per tonne for a while. He said “Spot coking coal prices have come down a bit after we had set a term contract price for the next quarter as expectations for even higher prices have receded. But we need to be prepared to see coking coal prices staying at high levels for a while,” he added.

Source : Reuters
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SAIL organizes “Augmentation of Indigenous Coking Coal Supply in Steel Industries” conference

Times of India reported that Steel Authority of India Limited, paying heavily for importing good quality coking coal for its steel plants, L is desperate in finding alternative solution to reduce its coking coal import. In order to find a solution SAIL's Colliery Division in collaboration with CSIR-Central Institute of Mining & Fuel Research, Dhanbad has organised a workshop for "Augmentation of Indigenous Coking Coal Supply in Steel Industries" at Kolkata.

SAIL's director (Raw Materials & Logistic), Kalyan Maity, and director, CSIR-CIMFR P K Singh, took initiative to bring in the industry experts to address the burning issue of optimising the use of domestic coking coal resources for steel industry.

SAIL's Advisor (Coal), Sri N C Jha, former-chairman CIL, who inaugurated the workshop, stressed on increasing the domestic production of coking coal and is hopeful about reducing the import dependence in future.

Experts in the workshop pointed out that setting up new washery, reorganising the procurement mix, steel producers' joint negotiation with foreign suppliers, and acquisition of coking coal mines will improve the situation. Japan is the highest importer of coking coal. But the country secures a strong bargaining power for import by forming a group of steel producers for joint negotiation.

India has to heavily depend on import of coking coal, as the domestic quality has higher ash content and not suitable for steel industry with present technology. Country's present coking coal production is around 50 mt out of which only 4 mt is being used by the steel industry, and the major chunk goes to thermal plants. With the 6% growth assumption, India is expected to produce 111 million tonne of steel by 2020. Accordingly the import demand of coking coal is expected to go up to 75 million tonne form the 44.7 mt in 2014-15, as presented by metal junction in the workshop.

Source : Times of India
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NLMK Group wins Golden Site award

The website of NLMK Group (www.nlmk.com) an international steelmaking company with operations in Russia, the USA and EU member states, has won the ‘Industrial or Fuel&Energy Company Website’ nomination at the Golden Site awards, the biggest and longest-running competition for Russian internet projects.

Source : Strategic Research Institute
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Tenova Core, Pomini Tenova (USA) and Tenova I2S merge operations

The Fabricator reported that effective January 1st 2017, the businesses of Tenova Core Inc, Pomini Tenova Inc (USA) and Tenova I2S will operate as a single company called Tenova Inc.

Mr Thomas Bovalina current Tenova Core president and CEO will continue to serve in the same position for the newly formed company. Its product portfolio will include melt shops, heat-treating furnaces, reheating furnaces and strip processing, roll shops, and cold rolling mills.

Source : The Fabricator
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TATA Steel bags National Energy Conservation Award 2016

Press Trust Of India reported that private steel major Tata Steel bagged the first prize in the Integrated Steel sector at the National Energy Conservation Award, 2016 for its excellence in Energy Conservation and Management, which is awarded by the Bureau of Energy Efficiency, Union Ministry of Power.

The award was given by Union Minister of State for Power, Coal, New and Renewable Energy and Mines, Piyush Goyal on the occasion of National Energy Conservation Day celebrated in New Delhi, according to a Tata Steel press release here.

Mr Suresh Kumar vice President, Shared Services, Tata Steel and J P N Singh, Chief, Power Systems and Energy, Tata Steel received the award on behalf of Tata Steel.

On receiving the award, Kumar said that “We are delighted to receive this acknowledgement of our efforts in energy conservation and management. This will further reinforce our commitment to this critical area of operational excellence. In view of the expanding economy and substantial increase in demand for energy, it is imperative to be sensitive to energy conservation and to deploy environment friendly practices in operations.”

Mr Singh said the award acknowledges efforts put in by Tata Steel to reduce thermal and electrical consumptions over five per cent during the year, the release said.

He said that reduction in blast furnace fuel rate and specific power consumption, higher utilisation of by-product gases for steam and power generation, and waste heat recovery have been the primary contributing factors during the year towards achievement of overall reduction in specific energy consumption.

Source : Press Trust Of India
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Fortescue to repay $US1 billion of debt

AAP reported that iron ore miner Fortescue Metals Group will next week repay USD 1 billion ($A1.4 billion) of its term loan due in 2019. The payment will result in an annual interest savings of USD 38 million and bring down its gross gearing level to below its 40% target.

Fortescue has used the strong run in iron ore prices to slash costs and debt, repaying USD 2.9 billion of debt during the last financial year, and another USD 700 million in September.

Source : AAP
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Around USD 311 million has to be mobilised to restart the iron ore project in Th?ch Khê

Viet Nam News quoted Hà T?nh Province a Ministry of Industry and Trade official as saying that around VN?7 trillion (US$311 million) has to be mobilized to restart work on the iron ore project in central. The project to exploit the Th?ch Khê ore mine, which has the largest reserves in Southeast Asia, has been suspended since 2011 because of capital shortage.

Local newspapers reported that Mr Tr??ng Thanh Hoài director of the ministry’s Department of Heavy Industry, was responding to the request by Vi?t Nam National Coal-Mineral Industries Group (Vinacomin) for the capital to be mobilised from local steel consumers such as Hòa Phát and Hoa Sen.

The total reserve of ore in the mine is estimated at 544 million tonnes and its value at USD 35 billion. The mine would become a sound supply source for the country in the next five years, producing an estimated 20 tonnes a year, according to the Vi?t Nam Steel Association.

The project, which kicked off in 2009 and required a total investment of VN? 10 trillion (USD 444 million), was managed by Th?ch Khê Iron Joint Stock Company. However, two years later, the project was stopped after 13 million cubic metres of top soil were excavated. The reason given was the use of outdated technology.

The company was also short of capital at the time as only its biggest shareholder, Vinacomin, had fulfilled its commitments. To date, site clearance and the relocation of 4,000 households whose land has to be acquired, which will cost VN? 3.5 trillion (USD 157 million), has not been completed.

Source : Vietnam News
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quote:

voda schreef op 19 december 2016 16:59:

Around USD 311 million has to be mobilised to restart the iron ore project in Th?ch Khê

AB, Voda.

Wordt zeer gewaardeerd; wanneer ik even tijd heb, hoef ik de draad maar te openen en kan zo de laatste nieuwsfeiten lezen.

Groeten vanuit Mexico Stad.

Ozzy

PS: Een foto bijgevoegd van de 56 meter hoge kerstboom in Chignahuapan, foto genomen twee weken geleden.

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Lech1
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quote:

OzzyO schreef op 20 december 2016 04:35:

[...]
AB, Voda.

Wordt zeer gewaardeerd; wanneer ik even tijd heb, hoef ik de draad maar te openen en kan zo de laatste nieuwsfeiten lezen.

Groeten vanuit Mexico Stad.

Ozzy

PS: Een foto bijgevoegd van de 56 meter hoge kerstboom in Chignahuapan, foto genomen twee weken geleden.

Absoluut mee eens, ik lees ze ook. Ben niet meer zo aktief op het "draadjesnetwerk" want soms worden er reacties gegeven dat ik liever kies voor een duppie eraf dan dat te moeten lezen wat vaak inhoudsloos is dat je er iets mee kan. Mijn verzoeken zijn trouwens gehoord... ik zit er ook echt een duppie in bekant hahahahaaa.... dat komt wel weer goed met LT. Mede door dat wat VODA deelt. Hebben we iets aan en kunnen we ook wat mee.
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Bedankt heren. Fijn om te lezen.

Wereldwijde staalproductie stijgt

Gepubliceerd op 20 dec 2016 om 16:21 | Views: 364

BRUSSEL (AFN) - De wereldwijde staalproductie is in november met 5 procent gestegen ten opzichte van een jaar eerder, naar 132,4 miljoen ton. Dat meldde de World Steel Association dinsdag.

China zag zijn productie met 5 procent stijgen en was daarmee goed voor de helft van de totale internationale productie. Rusland en de VS produceerden 7 en 5 procent meer dan een jaar eerder.

In Europa nam de staalproductie in Duitsland met ruim 4 procent af, terwijl de staalindustrie in Italië en Frankrijk 11 tot 12 procent meer voortbracht dan in november 2015.
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