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Sinopec SSPW Orders Spiral Pipe Plant from SMS Group

SINOPEC Shashi Steel Pipe Works has placed an order with SMS group for the supply of a spiral pipe plant for its facility in Jingzhou in China. The plant will be designed for both submerged arc and Metal Active Gas welding PERFECT arc. SINOPEC SSPW plans to process higher material grades with the new plant, while boost productivity. The new plant will produce spiral tubes for oil and gas applications within the 508 millimeter (20 inch) to 2,032 millimeter (80 inch) diameter range, with a maximum wall thickness of 25.4 millimeters (1 inch) and a length of 15 meters. The plant will be able to produce pipes in an online and in an offline process. After forming, the pipe can be either directly finish-welded on the machine (online) or tack-welded at a three to four times higher speed and finish-welded later, on separate finish-welding stands (offline). The equipment for the new pipe plant is scheduled to be supplied in the third quarter of 2021. Following the installation, commissioning is planned to take place in the middle of the fourth quarter of 2021.

The plant will be integrated into a production planning and management system (Industrie 4.0) and providing production data in real time. To this end, it features the latest automation systems, including Siemens TIA (Total Integrated Automation) control technology. The digitally controlled processes will further enhance production flexibility thanks to the seamless interaction of all automation components with the dedicated software and the higher-level systems and services.

The PERFECT arc welding technology includes features to record and evaluate the measurement data and comes with the latest generation of laser line scanners for the precise advancement of the welding head and for measuring the welding profile right in the machine. The latest current-source technology with IGBT (Insulated Gate Bipolar Transistor) power electronics, in which control of the welding current is fully digitalized, achieves consistent welding results with a reduced heat input. The PERFECT arc® power source guarantees a high welding efficiency of 90 percent.

In the offline process, PERFECT arc even adapts the welding parameters automatically to the welding/forming speed. In addition, state-of-the-art drive and hydraulic systems make the machine highly energy-efficient.

Source - Strategic Research Institute
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US Steel Imports in February Shrink by 20% YoY

Based on the Commerce Department’s most recent Steel Import Monitoring and Analysis data, the American Iron and Steel Institute reported that steel import permit applications for the month of February totaled 1,945,000 net tons. This was a 12.3% decrease from the 2,218,000 permit tons recorded in January and a 19.7% decrease from the January preliminary imports total of 2,422,000 net tons. Import permit tonnage for finished steel in February was 1,387,000 net tons up 11.9% from the preliminary imports total of 1,239,000 net tons in January. For the first two months of 2021, including February SIMA permits and January preliminary imports, total and finished steel imports were 4,367,000 net tons and 2,626,000 net tons, down 6.3% and 12.4%, respectively, from the same period in 2020. The estimated finished steel import market share in February was 18% and is 16% year-to-date.

Finished steel imports with large increases in February permits vs. the January preliminary imports include tin plate up 213%, sheets and strip electrolytic galvanized up 151%, cold rolled sheets up 71%, tin free steel up 55%, hot rolled sheets up 43%, cut lengths plates up 34%, line pipe up 30%, mechanical tubing up 19% and wire rods up 15%. Products with significant year-to date increases vs. the same period in 2020 include tin plate up 22%, steel piling up 81% and sheets and strip electrolytic galvanized up 69%.

In February, the largest finished steel import permit applications for offshore countries were for South Korea 216,000 net tons up 64% from January preliminary, Japan 91,000 net tons up 97%, Germany 82,000 net tons up 251%, Turkey 77,000 net tons down 6% and The Netherlands 38,000 net tons up 841%. Through the first two months of 2021, the largest offshore suppliers were South Korea 347,000 net tons up 2% from the same period last year, Japan 137,000 net tons down 6% and Turkey 158,000 net tons up 28%.

Source - Strategic Research Institute
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Danieli Improves Trinecke Zelezarny Rolling Mill Performance

Improved stability for bar in coil rolling has been achieved at Trinecke Zelezarny in Czech Republic, after installation of new Danieli fully automatic pinch-roll unit and Morgardshammar RX intelligent guides that enable quick size change with minimal operator intervention. This unique automated system is remotely adjusted for each rolling campaign within a wide range of rolled products, including 15 to 50 mm rounds, squares and hexagonal cross-sections. Perfect guidance of the bar is provided by the highly advanced and automatically operated RX Roller Guide system, which dynamically adjusts itself during rolling. The dynamic action of the guide also reduces unnecessary forces that can deform the bar, and consequently increases the service life of rollers, bearings, and other components of the guide.

Trinecke Zelezarny has achieved the desired increased bar stability and correct tension and control from finishing stand to coiler. Size changes are performed quickly and automatically according to the recipe selected by the mill operator. RX guides enable a game-changing new level of adjustment and diagnostics on the mill floor and in the maintenance shop.

Part of the Moravia Steel Group, Trinecke Zelezarny is a Czech producer of high quality steel long products.

Source - Strategic Research Institute
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Shareholder Confirms Cash Injection in Wyelands Bank

GFG Alliance announced that “After the disruption caused by both Brexit and COVID-19, Wyelands shareholder has recently capitalised the business with a cash injection of GBP 75 million. The result of this action is that Wyelands Bank is able it to pay back its retail depositors in full as part of a plan it is agreeing with regulators. Following conversations with regulators, the shareholder will submit a new strategy focused on its core business lending activities.”

Wyelands Bank shareholder Mr Sanjeev Gupta said “After the turmoil created by both Brexit and the pandemic, the shareholders of Wyelands have recapitalised the business to ensure retail depositors are repaid in full.”

Wyelands Bank is in a process of returning the retail deposits it holds on behalf of personal savers and the shareholder will recommend plans to focus solely on business advisory and connected finance, its shareholder said today.

Source - Strategic Research Institute
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Primetals to Modernize CycloconverterDrive at SalzgitterFlachstahl

Salzgitter Flachstahl GmbH has commissioned Primetals Technologies with the replacement of the existing cycloconverter drive system for the crop shear installed on the finishing mill of the Salzgitter German production site. The aim of the project is to maintain the availability of the finishing mill by replacing the obsolete cycloconverter drive with a new cycloconverter drive. When replacing the existing cycloconverter drive system, the customer's request is realized to build the new system switchable in parallel to the existing cycloconverter in order to ensure a risk-free replacement with short downtime. The project is scheduled to be completed in November 2021. The scope of delivery of Primetals Technologies includes the complete electrical replacement of the cycloconverter. Further, the order includes the delivery of a new control room panel, the creation of additional visualization screens and diagnostic options, as well as the integration of the new drive system into the existing cutting sequence control of the finishing mill.

Salzgitter Flachstahl is the largest steel subsidiary in the Salzgitter Group. More than 5,500 employees produced around 4.3 million tonnes of crude steel in 2019. In an integrated steel mill, the company produces hot-rolled strip, strip steel, strip sheet, cold-rolled sheet and surface-finished products with a thickness between 0.4 and 25 mm and a width of up to 2,000 mm. The production program includes drawing, deep-drawing and special deep-drawing steels, structural and fine-grained steels, as well as high-strength and ultrahigh-strength steels.

Source - Strategic Research Institute
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NS Siam United Steel Bags Award for TPM Achievement

Nippon Steel Corporation’s Thai cold rolled, hot dip galvanized and galvannealed steel subsidiary NS Siam United Steel Co Ltd has received the 2020 Award for World-class TPM Achievement for Total Productive Maintenance Achievement. The TPM practice has been advocated by the Japan Institute of Plant Maintenance. NS-SUS won the Award for World-class TPM Achievement, the highest ranked award of five ranks, for the first time as a steel company in Thailand. Prior to this, the company won the Award for TPM Excellence, Category A in 2008, the Award for Excellence in Consistent TPM Commitment in 2010, the Special Award for TPM Achievement in 2012, and the Advanced Special Award for TPM Achievement in 2017.

The Siam United Steel Co Ltd, a predecessor of NS-SUS, started the TPM activities in 2005. Since then, the company has undertaken its own maintenance work and has improved the level of planned maintenance and has raised the management level of maintenance work, so that there is participation by all employees corporate-wide. In 2012, it combined the TPM practice with the Toyota Production System to thoroughly reduce losses and improve production efficiency. Moreover, in 2018, the company launched the establishment of a sustainable business structure by further strengthening manufacturing and sales activities and incorporating new initiatives such as introducing Industry 4.0 technologies actively as well as carrying out previous activities.

Total Productive Maintenance program was developed by the Japan Institute of Plant Maintenance. It is a corporate-wide maintenance program to be participated by all employees, from the top management to production workers, with the aim of building a company that pursues maximum efficiency in production system in keeping with the goal of no accidents, no defects, and no trouble.

Outline of NS-SUS

NS-Siam United Steel Co Ltd

Map Ta Phut, Rayong Province Thailand

Capital 13 billion baht

Nippon Steel Corporation 80.2%, Mitsui & Co Ltd 6.2%, Metal One Corporation 5.0%, Sumitomo Corporation 3.5%, Nippon Steel Trading Corporation 0.3%, Thai Tinplate Mfg Co Ltd 4.8%

Cold-rolled steel sheets 1 million tonnes per year

Hot-dip galvanized and galvannealed steel sheets: 360,000 tonnes per year

Number of employees approximately 1,080

Source - Strategic Research Institute
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J&D Pierce Acquires Konecranes Plant in East Kilbride in Scotland

Glengarnock based J&D Pierce (Contracts) Ltd announced the acquisition of the former Konecranes plant in East Kilbridei n South Lanarkshire in Scotland in UK. The company has purchased the entire facility consisting of the 300,000 square foot manufacturing plant along with the 14 Acres of yard space. The facility will become the new headquarters of our Strubeam business which specialises in the manufacture of bridges, plate girders, heavy plated fabrication and welded truss work. It was reported in August 2020 that Konecranes plant in East Kilbride workers were facing redundancy, as the company was struggling to turn a profit. At the time, 80 people lost their jobs at the East Kilbride site, specialising in engineered-to-order and configured to order cranes. The plant will be operational by April.

J&D Pierce has also agreed a long term sub contract deal with Konecranes to continue the manufacture and assembly of Konecrane Demag overhead cranes in the East Kilbride facility. Cranes have been manufactured in this plant for over 60 years and J&D Pierce would continue to manufacture as a specialist supply partner to Konecranes.

Established in 1975, J & D Pierce is structural steelwork contractor in Scotland in UK. It specialises in the design, fabrication, painting and site erection of structural steelwork, working with some of the largest construction projects in the UK.

Source - Strategic Research Institute
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Geert Van Poelvoorde topman ArcelorMittal Europe

FONDS KOERS VERSCHIL VERSCHIL % BEURS
ArcelorMittal
20,395 0,407 2,04 % Euronext Amsterdam

(ABM FN-Dow Jones) Geert Van Poelvoorde is benoemd tot CEO van ArcelorMittal Europe. Dit maakte de staalreus maandag bekend.

Hij volgt Aditya Mittal op.

Van Poelvoorde werkte al voor ArcelorMittal en is sinds 2015 ook de voorzitter van Eurofer, de branchevereniging voor Europese staalproducenten.

Aditya Mittal werd eerder al benoemd tot CEO van ArcelorMittal.

Door: ABM Financial News.
info@abmfn.nl
Redactie: +31(0)20 26 28 999

© Copyright ABM Financial News B.V. All rights reserved.
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finance.yahoo.com/news/fears-5-000-uk...

The principal financial backer of one of the UK's largest industrial groups will fall into administration within hours, the BBC has learned.

Specialist bank Greensill Capital is the main lender to businessman Sanjeev Gupta's sprawling empire, which includes Liberty Steel.

The development puts 5,000 jobs at risk at Liberty Steel and other firms.

Union officials were already due to have crisis talks with Mr Gupta on Tuesday.

The Community union said it would be seeking "assurances on behalf of our members".

It added: "We are ready to work with all stakeholders to protect jobs and take confidence from the fact this is a vital strategic business with a world-class workforce, producing the best steels money can buy."

Mr Gupta, who has been called the "saviour of steel", has defied pessimists in the industry for years by buying up seemingly unloved industrial assets.

These included steel and aluminium plants that many thought could not be run profitably in the face of cut price competition from China.

What are the latest developments?
The BBC understands that Business Secretary Kwasi Kwarteng held an emergency meeting on Sunday with the chief executive of Liberty Steel UK, John Ferriman.

They discussed contingency plans in the event that Greensill went bust.

It is understood the options did not include nationalisation. Further meetings are expected later on Monday.

Mr Kwarteng also chaired a meeting of UK steel executives on Friday at which the future of Liberty, owned by Mr Gupta's GFG Alliance, was brought up,

However, it was not discussed in any detail with this wider group, which included union bosses.

How serious is this for the steel industry?
Liberty Steel is the UK's third-largest steelmaker, employing 3,000 people at 11 sites. Another 2,000 people in engineering businesses within the group are also involved.
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IG Metall Supports Thyssenkrupp Steel's Strategy for Independence

Handelsblatt reported that German steel workers union IG Metall has supported steel division of ThyssenKrupp backed strategy for an independent division of the materials business. IG Metall chief cashier & vice-head of ThyssenKrupp supervisory board Mr Jurgen Kerner said “For the employee side, the further development of steel on their own with the option of making the steel business independent is the right decision. In all shops, the focus is currently on cutting costs and downsizing. For the employees it is clear that the future cannot be shaped with these measures alone. Without clear support from the state, the switch to 'green steel' will not succeed.”

ThyssenKrupp CEO Ms Martina Merz announced in employee memo that after the cancellation of a sale of the steel division to Liberty Steel, the business would be given more leeway for independent development. She said “Steel has to be set up in a robust way throughout the full cycle so that it no longer needs support from the group. The aim is to make the steel business independent. There are a number of prerequisites for this, which we systematically work through. "

Her remarks come after the group cancelled an extraordinary supervisory board meeting originally scheduled for March 12 to decide whether to sell the steel division to Britain’s Liberty Steel.

Source - Strategic Research Institute
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Nippon Steel Unveils Medium to Long term Management Plan

Japanese steel giant Nippon Steel has developed its new medium to long term management plan to become the best steelmaker with world leading capabilities that contributes to Japan’s industrial competitiveness from the present and into the future. Nippon Steel said “Steel demand in Japan is expected to decrease due to its declining population, the expansion of overseas local production by Japanese customers, and other reasons. Global steel demand is expected to continue to grow steadily, particularly in Asia, and notably including India. In Japan where demand is shrinking, we have maintained our domestic production capacity by raising our export ratio. However, it is now necessary to assume that the current business model will be difficult to sustain because competition in the overseas market is expected to intensify, mainly as demand in China, which represents 60% of the world's steel production, seems to have already peaked, while we are entering a period which will require our main steelworks to provide large-scale investments for renewal of their aging facilities. In order to appropriately respond to these circumstances, in the domestic steel business we will thoroughly promote the strengthening of operations, notably by concentrated production through selection of products and facilities, thereby building a strong framework enabling us to manufacture products of the highest grade, in the form of mother mills which play a key role in our global steelmaking strategy. In the overseas steel business, we will expand our integrated production framework in the center of demand, such as by capacity expansion of AM/NS India, and ensure that local demand is captured in growing markets. By implementing these strategies, our plan is to achieve 100 million tons of global crude steel capacity per annum for the Nippon Steel Group by combining the efforts of our mother mills in Japan and local mills located overseas.”

Nippon Steel said “In addition, we will continue to respond to climate change. In exerting our efforts toward a decarbonized society, we are taking on the bold challenge of developing and industrializing new CO2 reduction technologies, in cooperation with various measures taken by the Japanese government, and aim to achieve carbon neutrality by 2050 in order to win competitions on the development of new CO2 reduction technologies with Europe, the United States and China and to continue to lead the world's steel industry. We will also contribute to the realization of carbon neutrality in Japan by utilizing our technological and In order to appropriately respond to these circumstances, in the domestic steel business we will thoroughly promote the strengthening of operations, notably by concentrated production through selection of products and facilities, thereby building a strong framework enabling us to manufacture products of the highest grade, in the form of mother mills which play a key role in our global steelmaking strategy. In the overseas steel business, we will expand our integrated production framework in the center of demand, such as by capacity expansion of AM/NS India, and ensure that local demand is captured in growing markets. By implementing these strategies, our plan is to achieve 100 million tons of global crude steel capacity per annum for the Nippon Steel Group by combining the efforts of our mother mills in Japan and local mills located overseas.”

It said “In addition, we will continue to respond to climate change. In exerting our efforts toward a decarbonized society, we are taking on the bold challenge of developing and industrializing new CO2 reduction technologies, in cooperation with various measures taken by the Japanese government, and aim to achieve carbon neutrality by 2050 in order to win competitions on the development of new CO2 reduction technologies with Europe, the United States and China and to continue to lead the world's steel industry. We will also contribute to the realization of carbon neutrality in Japan by utilizing our technological and product capabilities through development of and supply capacity increase of our high-performance products, such as ultra-high-tensile steel sheets for vehicle weight reduction, and high-performance electrical steel sheets for drive motors used in electric vehicles.”

It added “Moreover, we will push hard for digital transformation. We aim to become a digitally advanced company in the steel industry, and we will work on production and business process innovations and promote measures that contribute to the fundamental strengthening of decision-making and problem-solving capabilities through full use of digital transformation technologies and data.”

Four Pillars of the Medium to Long term Management Plan

1. Rebuilding domestic steel business and strengthening group’s management

2. Promoting a global strategy to deepen and expand overseas business

3. Taking on the challenge of zero-carbon steel

4. Promoting digital transformation strategies

Measures for all four pillars will be implemented according to roadmap. Particularly, with regard to pillar 1 Rebuilding domestic steel business and strengthening group’s management, plan is to complete the relevant measures by the end of fiscal 2025 in order to establish an efficient and strong production framework at an early stage, and to rebuild the earnings base of domestic mother mills.

Source - Strategic Research Institute
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Lenders Accept Conditional Payment Offer of JSW Steel for BPSL

Committee of Creditors has agreed to close the bankruptcy process of Bhushan Power & Steel Ltd by accepting a conditional proposal of JSW Steel. Lenders voted with 97% majority to accept INR 19,350 crore upfront payments from JSW Steel on the condition of reversing the payment in case of an adverse order from the Supreme Court. JSW Steel had tied certain conditions before releasing the funds to creditors of Bhushan Power, in part to secure indemnity in an event of unfavourable SC ruling in the case, which would then return the entire sum to JSW Steel. The transaction will pave the way for JSW Steel to mark its manufacturing presence in eastern India

SBI will be the biggest beneficiary having IR 9,825.67 crore admitted claim, followed by PNB’s INR 4,399 crore. An asset reconstruction firm has debt of INR 5,275 crore, while Canara and Allahabad Bank have INR 2,244 crore and INR 2,130 crore, respectively.

The National Company Law Tribunal approved JSW’s resolution plan, overcoming initial challenges from Tata Steel and Liberty of the UK, in September 2019. JSW offer represents a 58.97% haircut for the financial creditors that had a combined exposure of INR 47,158 crore to BPSL. But the pitch was queered by the enforcement directorate, which attached assets worth INR 4,025.23 crore under the Prevention of Money Laundering Act of BPSL, following on a case against the erstwhile promoter. Even though the National Company Law Appellate Tribunal set aside the ED’s attachment, the latter has moved the apex court challenging the decision. ED also contended that JSW would not be able to take refuge under Section 32A of the bankruptcy code as JSW was a related party to BPSL as they were JV partners for a coal block in 2008. JSW contested the claim countering that the JV was guided by the policy of the day for the allocation of blocks.

Promoted by Mr Sanjay Singhal and his family, BPSL has a 2.8 million tonne steel plant in Odisha, a power plant and several downstream units across north India.

Source - Strategic Research Institute
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Protests against Privatisation of RINL Paralyze Andhra Pradesh

Andhra Pradesh observed a complete shutdown on Friday in protest against the proposed privatisation of Rashtriya Ispat Nigam Limited. The state government offices, commercial establishments, cinema theatres, educational institutions and universities remained shut. Protesters blocked roads at several places and the highways wore a deserted look, as the private bus transport operators, truck operators associations and auto rickshaw drivers unions also extended support to the bandh call. Buses belonging to state run Road Transport Authority were off the roads till afternoon, as the employees also staged dharnas in front of the bus depots to express their solidarity with the agitating employees of the steel plant. The leaders of the AP NGOs Association and the employees took out a massive rally expressing solidarity

Except the Bharatiya Janata Party, all the political parties, including the YSR Congress Party, the ruling party in the state, took part in the state bandh.

At Maddilapalem junction in Visakhapatnam, the YSRCP organised a human chain in support of the agitation by the trade unions of the steel plant. Activists of the CPI, CPI (M) and various trade unions also participated in the human chain programme. In Anantapur, CPI (M) activists held a dharna in front of the RTC bus depot. In Vijayawada, the Telugu Desam Party and the Left parties took out a procession from Lenin Centre demanding withdrawal of privatisation move.

Government’s plans to privatise the Vizag Steel Plant have led to protests in the city since last month. In January, the Cabinet Committee on Economic Affairs gave its in-principle approval for 100% strategic disinvestment of the centre’s shareholding in Rashtriya Ispat Nigam Limited the corporate entity of VSP along with management control by way of privatisation.

VSP, commissioned in 1992, is the first shore-based integrated steel plant in the country. The plant employs about 15,000 permanent and 20,000 contract workers and provides indirect livelihood to over 65,000 people. The plant thus supports one lakh jobs and about five lakh people, about a quarter of Vizag city population.

Source - Strategic Research Institute
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ArcelorMittal to Invest INR 50,000 Crore in Gujarat

Gujarat Chief Minister Mr Vijay Rupani announced that ArcelorMittal will invest more than INR 50,000 crore in Gujarat. Mr Rupani told reporters "All industrialists from India and abroad, including Lakshmi Mittal, are coming to Gujarat for making investment as they count Gujarat as the best investment destination. Lakshmi Mittal came to meet me and told me that he will make an investment of more than INR 50,000 crore in Gujarat in the coming days."

AM/NS India, a 60:40 joint venture between ArcelorMittal and Nippon Steel, is an integrated flat carbon steel manufacturer with an achievable crude steel capacity of 9 million tonnes per annum. Its manufacturing facilities comprise iron making, steelmaking and downstream facilities spread across India. AM/NS India uses a range of specialized technologies for iron making, steel making and rolling at Hazira in Gujarat, giving flexibility in utilizing raw materials and source energy

Iron making: Blast furnace, Corex and DRI.

Steel making: EAF and CONARC

Steel rolling: HSM and CSP

Source - Strategic Research Institute
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Nippon Steel Plans 10 Million Tonne Crude Steel Capacity Cut

Nippon Steels in new medium to long term management plan has announced rebuilding of domestic steel business and early recovery of profitability by realizing a higher level order mix through aggressive investment in strategic products to renew and improve facilities to ensure technological strength leading to profit generation and to make the production framework streamlined and more efficient by selective concentration on certain products and facilities. After implementing the above measures, the annual domestic crude steel production capacity (simple sum of Nippon Steel and Nippon Steel Stainless Steel) will be reduced by approximately 10 million tonnes from 50 million tonnes to 40 million tonnes. Nippon Steel will reduce the number of personnel by a total of more than 20% in us and our business partner’s on-site contractors for the period from fiscal 2021 to the end of fiscal 2025. For the purpose of building an optimal production framework, Nippon Steels will implement the following specific measures

To strengthen steel plate business, in addition to the already-announced shutdown of the steel plate mill at the Nagoya Works by around the end of fiscal 2021, the steel plate mill in the East Nippon Works Kashima Area will be shut down by around the second half of fiscal 2024 and its production will be transferred to the steel plate mills in the East Nippon Works Kimitsu Area and the Kyushu Works Oita Area.

To strengthen construction products business, the shape mills in the Kimitsu Area and Kashima Area of the East Nippon Works will be shut down by around the end of fiscal 2021 and their production will be transferred to the shape mills in the Kansai Works Wakayama Area in Sakai and the Kyushu Works Yawata Area. In addition, in the East Nippon Works Kimitsu Area, the continuous casting machine, which manufactures large-shaped steel pieces, will be shut down along with the shutdown of the shape mill by around the end of fiscal 2024

In the Kansai Works Wakayama Area in Kainan, of the two seamless pipe mills, East and West, the West smalldiameter seamless pipe mill will be shut down by around the end of fiscal 2025 in order to optimize and improve the efficiency of the production framework. Nippon Steel has decided to withdraw from the UO steel large dia pipe business as there are no prospects for securing stable profit, taking into account the medium- to long-term demand outlook. As a result, the UO pipe mill in the East Nippon Works Kimitsu Area will be shut down by around the end of fiscal 2021

Along with concentrating orders into competitive production lines, the measures below will be taken in order to become more oriented toward production close to centers of demand in flat products business, in addition to the already-announced shutdown of the hot strip mill and the pickling line in the Setouchi Works Kure Area. Some of the facilities of the hot-dip galvanizing line in the East Nippon Works Kimitsu Area by around the end of fiscal 2024 and the pickling line in the Kashima Area of the same works by around the end of the first half of fiscal 2022 will be shut down, and their production will be transferred to other lines in Kimitsu, Nagoya, and elsewhere. Some of the hot-dip galvanizing lines in the Setouchi Works Hanshin Area in Sakai will be shut down and their production will be transferred to other production lines in Sakai and the Kyushu Works Yawata Area. All facilities in the Setouchi Works Hanshin Area in Osaka will be shut down and all of the flat steel sheet lines in the Kansai Works Wakayama Area will be shut down. Their production of high-carbon products will be transferred to the Setouchi Works Hanshin Area in Sakai. High carbon products will be manufactured at two bases, the Setouchi Works Hanshin Area in Sakai and Kyushu Works Yawata Area
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Deel 2:

Titanium and ultra thin special stainless steel business - To improve the efficiency of the production framework, some manufacturing facilities of special stainless steel sheet products will be shut down at the East Nippon Works in Naoetsu Area and their production will be transferred to the Yamaguchi Works in Shunan Area of Nippon Steel Stainless Steel Co Ltd by around the end of fiscal 2021. Moreover, in addition to the already-announced shutdowns of the titanium round bar manufacturing special facility in the Kansai Works Osaka Area and the titanium welded pipe manufacturing line in the Kyushu Works Oita Area based Hikari Pipe & Tube, the titanium raw material plant in the Kansai Works Osaka Area will be shut down.

Nippon Steel Stainless Steel Corporation - To increase the efficiency of the production framework, the cold-rolling mill and the annealing line of Nippon Steel Stainless Steel’s Kinuura Works will be shut down and the production will be transferred to its Yamaguchi Works. This will result in the shutdown of all production facilities of the Kinuura Works, including the shutdown of its hot strip mill which was announced in 2020. The electric furnace in the Yamaguchi Works and some of the cold-rolling and annealing facilities at the Yamaguchi Works and the Kashima Works will also be shut down.

Measures to streamline upstream facilities - The following measures will be implemented in addition to the already-announced shutdown of all upstream facilities (2 blast furnaces, sintering, and steelmaking) in the Setouchi Works Kure Area by around the end of fiscal 2024and upstream facilities (1 blast furnace and related facilities) in the Kansai Works Wakayama Area By around the end of fiscal 2021. Taking into consideration the upstream facility balance after the shutdown of the steel plate mill and shape mill in the East Nippon Works Kashima Area, as well as the area’s integrated production and shipping capacity, costs, and other factors, the No 3 blast furnace and related facilities will be shut down. In the East Nippon Works Kimitsu Area, the continuous casting machine that manufactures large-shaped steel pieces will also be shut down along with the shutdown of its shape mill. Based on the immediate trends in supply and demand and other factors, and in order to improve the efficiency of the production framework at an earlier stage, among the upstream facilities of the Kansai Works Wakayama Area which were previously announced, the shutdown of the No 1 blast furnace, No 5 coke ovens, and No. 5-1 sintering machine will be moved up one year ahead of the original schedule from around the end of the first half of fiscal 2022 to around the end of the first half of fiscal 2021. The shutdown schedule for the No. 4 coke oven and No. 3 casting machine -1 strand remains unchanged and will continue until around the first half of fiscal 2022, as announced on Feb. 7, 2020.

Strategic investment in a hot strip mill at the Nagoya Works – Nippon Steel intend to dramatically strengthen production capability of ultra high tensile strength steel sheets2 at the Nagoya Works, which is our center for the manufacture of automobile steel sheets. We have therefore decided to make a strategic investment in building a next-generation hot strip mill. After the next-generation hot strip mill is launched, the existing hot strip mill will be shut down.

Strengthening production framework of high grade electrical steel sheets – Nippon Steel decided to adopt measures to improve the capacity and quality of electrical steel sheets in the Setouchi Works Hirohata Area and the Kyushu Works Yawata Area in November 2020. Nippon Steel is currently working on measures to realize this by the first half of fiscal 2023. In addition, Nippon Steel has decided to swiftly respond to market demand for these sheets by improving the production capacity in the Setouchi Works Hirohata Area.

Source - Strategic Research Institute
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BHP Inks MoU with HBIS to Cut Emissions in Steel Industry

BHP has signed a MoU with one of the world’s largest steelmakers and a major customer of BHP’s iron ore China’s HBIS Group Co Ltd with the intention of investing up to USD 15 million over three years to jointly study and explore greenhouse gas emissions reduction technologies and pathways. Under the partnership, BHP and HBIS Group intend to collaborate on three priority areas: hydrogen-based direct reduction technology, the recycling and reuse of steelmaking slag, and the role of iron ore lump utilisation to help reduce emissions from iron making and steelmaking. The partnership aims to help both companies progress toward their climate change goals, and support the steel industry’s role in helping to achieve China’s ambitions to be carbon neutral by 2060.

BHP’s Chief Commercial Officer Ms Vandita Pant said “We view decarbonisation of the steel industry as a complex puzzle that requires multiple technological solutions across the value chain over different time horizons. By forming this third low-carbon steelmaking partnership with HBIS Group, we are focusing on additional components, such as the role our products play in hydrogen-based steel production, that complement our other partnerships and support for endeavours in emissions reduction and capture from the traditional blast furnace route.”

BHP’s investment would be drawn from its USD 400 million Climate Investment Program established in 2019 to support projects, partnerships, research and development to help reduce Scope 1, 2 and 3 emissions.

The MoU with HBIS Group follows recent partnerships established with major steelmakers China Baowu and JFE to explore emissions reduction from steelmaking. BHP has been active in other areas to reduce emissions, including awarding the world’s first LNG-fuelled Newcastlemax bulk carrier tender and the first LNG supply agreement for those vessels, and renewable energy supply contracts for BHP’s Queensland coal mines and Nickel West operations.

Source - Strategic Research Institute
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Mr Sanjeev Gupta to Hold Crisis Talks with UK Worker Unions

The Daily Mail reported that troubled steel magnate Mr Sanjeev Gupta will hold crisis talks with unions as fears grow that his empire is teetering on the brink of collapse. Unions are desperate to find out if the collapse of Greensill will hit Liberty Steel's UK operations and have been frustrated by the lack of transparency. A spokesman for steel union Community said “We will be meeting with Liberty early this week to seek assurances. We take confidence from the fact this is a vital strategic business with a world-class workforce producing the best steels money can buy.”

Thousands of jobs in Britain's steel industry are thought to be at risk after the biggest lender to Gupta's GFG Alliance, Greensill Capital, was thrown into turmoil and is now expected to go into administration. Greensill crumbled after Credit Suisse wound up GBP 7.2 billion of funds. Bankers were said to be concerned about financing linked to Gupta. Greensill was put under further pressure after its chairman and two other board members resigned.

The GFG Alliance is a collection of companies that includes Liberty Steel, Britain's third-largest steel maker with 3,000 workers at 11 sites. Gupta, 50, became the 'saviour of UK steel' after a spending spree that saw him buy up plants in Rotherham, Stocksbridge, Newport and Hartlepool. But the Indian-born British tycoon also went on a global acquisition binge, buying steel and aluminium factories in Australia and the US. The GFG Alliance has racked up an estimated GBP 4 billion of debt to lenders, including GBP 3 billion to Greensill alone.

Source - Strategic Research Institute
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Mr Biden Likely to Continue with Section 232 Tariffs on Steel

Newly appointed Commerce Secretary Ms Gina Raimondo in an interview with MSNBC said that the Section 232 tariffs introduced on steel and aluminum imports by former President Mr Donald Trump's administration have been effective, signaling there is likely to be little change in the near term. She said "The data show that those tariffs have been effective. What President Biden has said is there will be a whole-of-government review of all of these policies and decide what it makes sense to maintain.”

Mr Trump implemented a 25% duty on steel imports and 10% on inward-bound shipments of aluminum three years ago on national-security grounds, saying they were needed to protect the domestic industry from going under.

Industry groups representing the top US steel producers and the United Steelworkers union in January urged Biden to preserve the steel tariffs, calling them essential to the viability of the domestic industry. But manufacturers have called on Mr Biden to end the duties, saying they hurt businesses and fractured relationships with trading partners from Mexico and Canada to the European Union and Japan. Most end-users have complained that the tariffs raise their raw materials costs, cutting into profits. The major American steel companies say the duties have protected them from foreign imports that tend to push down prices. Though, right now the industry is purposely throttling production to keep domestic steel prices at record levels, which may lead end users to buy foreign imports in order to satisfy their needs.

Source - Strategic Research Institute
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Mr Singal Files Fresh Plea Seeking Stay on JSW Steel Deal for BPSL

Economic Times reported that Bhushan Power and Steel Ltd's erstwhile promoter Mr Sanjay Singal has filed a fresh application in the Supreme Court last week asking for a stay in implementation of the company's resolution plan in a last ditch effort to scuttle the deal. The report quoted a person familiar with the application as saying that "This fresh application is seeking interim relief till his main application against JSW is heard. It remains to be seen whether the court takes it up.”

Mr Singal had filed an appeal last year against lenders granting JSW the company citing the 29A provision of the bankruptcy code which disqualifies related parties for bidding for companies by arguing that BSPL and JSW Steel were joint venture partners in Rohne Coal Company and hence JSW cannot bid for the company. But the Supreme Court had not granted a stay on hearing this appeal last year

The Enforcement Directorate on 18 January had filed charge sheet in the special court against Bhushan Power and Steel Limited and 24 other accused including former Mr Singhal, in connection with a multi-crore money laundering case linked to alleged bank fraud. Mr Singal was arrested on 22 November under the Prevention of Money Laundering Act, after he was questioned in connection with the case. Special CBI judge Arun Bhardwaj while directing him to furnish a bail bond of INR 10 lakh and two sureties of like amount had granted bail to Mr Singal in January 2021 end.

Source - Strategic Research Institute
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