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Indian government to use steel pipes for irrigation in place of canals – Mr Gadkari

PTI reported that Union Minister Mr Nitin Gadkari said that steel pipes will be used for irrigation instead of canal system, a move aimed at cutting down on land acquisition costs and promoting innovations. He said "In one part of India, we have lots of water and the other faces shortages. Water conservation is important here and we are encouraging innovations and technologies. Now we have taken a decision that in place of canal system we will use steel pipes supplying water for irrigation. We are saving the cost of land acquisition.”

He said land acquisition has become a costly proposition here and by using steel pipes not only sufficient savings will be there but the output will be more than double.

He added “We are accepting lots of technologies in water resources ministry. We are encouraging drip irrigation. We are now planning for river connectivity. We will take water where we need it.”

Source : PTI
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Mesco keen to buy struggling steel companies – Ms Rita Singh

Economic Times quoted Ms Rita Singh of the Mesco group as saying that Mesco is talking to willing promoters about acquiring mid-size struggling steel companies to double its steel capacity and emerge as strong mid-size player. Ms Singh, while refusing to share more details, told ET "Mesco has taken a strategic decision to engage with some of these companies and depending on the viability, try to acquire them. We are talking to promoters of some of these companies.”

She added that her targets include one in Maharashtra and Odisha each.

She told "The market is getting better. It is the right time to ramp up now.”

Mesco will be tapping finance companies to help fund these acquisitions as and when they fructify. With an M&A budget of around INR 1,500-1,700 crore, Mesco, which had acquired Maithan Ispat in 2015 and turned it around in two years, is also keen on debt-ridden Electrosteel Steels, now facing bankruptcy proceedings in National Company Law Tribunal.

The reason for her optimism is obvious. Steel prices have been on an upswing and thanks to government spending on construction and infrastructure, domestic demand is finally showing signs of an upturn. Banks, earlier shy of extending finance, are now coming forward with funds once again.

Source : Economic Times
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Vattenfall wins power supply deal from Finnish Ovako

Swedish state-owned utility Vattenfall AB has signed a contract with Ovako that will allow the Finnish steel maker to further expand its sustainability efforts. Under the deal, Vattenfall will supply about 1 TWh of electricity per year to power Ovako's production plants in the Nordic region. It said on Thursday that the three largest factories that will benefit from the contract are the Hofors and Smedjebacken plants in Sweden and the Imatra facility in eastern Finland.

The Finnish steel manufacturer is committed to sustainability and is one of the largest steel scrap recyclers in the Nordic region.

Vattenfall noted that the deal is in line with its goal to lower its climate impact across its value chain and support its clients in reducing their greenhouse gas emissions and thus achieve climate targets. Earlier this year, the utility said it aims to grow in line with the trend towards a more sustainable energy system with more fossil-free generation. It has set a goal to achieve climate neutrality by 2050.

Source : Strategic Research Institute
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HBIS Laoting Steel ordered two continuous slab casters from Primetals Technologies

Chinese steel producer HBIS Laoting Steel Co Ltd has ordered two new, twin-strand continuous slab casters from Primetals Technologies. The casting plants have a combined capacity of 4.2 million metric tons of slabs per annum and will form part of a new production facility for high-quality steels being built in the Laoting district in the south east of the autonomous city of Tangshan. Potentially hazardous tasks will be handled by LiquiRob casting platform robots. The two continuous slab casters are scheduled for commissioning in February and March 2019.

HBIS Laoting was founded in 2017 in order to transfer production capacities out of the core city of Tangshan,.and belongs to HBIS Group Co., Ltd. HBIS Group is one of China's largest iron and steel material manufacturers and comprehensive service suppliers.

The two twin-strand continuous slab casters are each designed for a production capacity of 2.1 million metric tons per annum. They have a machine radius of 9.5 meters and a metallurgical length of 35.1 meters. They cast slabs with a thickness of 230 millimeters in widths ranging from 900 to 1,900 millimeters. The maximum casting speed is 1.8 meters per minute. The range of products covers ultra-low carbon and low carbon steels, deep drawn, structural peritectic alloyed steels, and pipe grades.

Primetals Technologies is responsible for the detail engineering of the casting platform and the strand-guiding system, the basic and detail engineering of the maintenance area, as well as the engineering of the automation and the software for the new continuous slab casters. The scope of supply includes the complete electrical installations and automation, as well as core components, such as molds and mold oscillators, and Smart Benders and Smart Segments for the strand-guide system.

Technologies will also supervise the installation and commissioning, and conduct the customer training on site. A LiquiRob system will manipulate the hydraulic cylinder of the ladle slide gate and the media connection in the ladle area. Another LiquiRob system on the ladle caster platform will manipulate the ladle shrouds, measure the temperatures, and control the firing of the ladles.

Both casting plants will be equipped with a straight cassette-type Smart Mold with LevCon mold level control, Mold Expert for the automatic breakout detection system and process data monitoring, DynaWidth for changing the width of the slab during operation, a DynaFlex mold oscillator and an electromagnetic mold stirrer. I-Star rollers will be used to support the strand in the segments of the strand-guide system. The DynaPhase and Dynacs 3D process models will be used for the dynamic control of the strand temperature. They calculate and dynamically control a three-dimensional temperature profile along the whole length of the strand. This enables the working points of the strand cooling, and thus the final strand solidification, to be determined precisely as a function of the casting speed, slab format and steel grade. DynaGap Soft Reduction 3D will be used to improve the interior quality of the slabs. The roller gap is dynamically adjusted during the final solidification in line with the working points calculated by Dynacs 3D. The center and edges are cooled in the bending section and segments to allow uniform, optimal cooling over the entire width of the slabs.

Source : Strategic Research Institute
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Iran steel billet production up 17%

Iran Daily reported that Iran’s steel billet output reached 11.22 million tonnes from March 21 to November 21, indicating a 17% growth compared to the corresponding figure for the same period of last year. During October 23 to November 21, Iran’s steel billet production stood at 1.51 million tonnes, 29% higher than the figure for the same duration of last year.

During the eight month period to November 21, Isfahan’s Mobarakeh Steel Company, comprising Mobarakeh, Saba and Hormuzgan steel complexes, produced a total of 5.64 million tonnes of steel slab, showing a 15% growth year on year.

In the same time span, steel slab, bloom and billet production by Khuzestan Steel Company amounted to 2.5 million tonnes, five percent higher than the figure for the same period of a year ago.

Esfahan Steel Company’s bloom production in the same duration also grew one percent to reach 1.52 million tonnes. Steel bloom output by Iran Alloy Steel Company in this period also increased 12% to stand at 279,097 tonnes.

From March 21 to November 21, 2017, billet production by South Kaveh Steel Company and Khorasan Steel Complex Company reached 545,465 tonnes and 498,786 tonnes, respectively.

Source : Iran Daily
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SAIL Board approves auto steel JV with ArcelorMittal

Indian steel giant SAIL said that its board has approved the proposal to enter into a joint venture with the world's largest steelmaker ArcelorMittal for manufacturing high-end automotive steel. Steel Authority of India Ltd said that "The Board of SAIL in its meeting held on December 12, 2017, has approved the proposal for signing of a legally non-binding term sheet with ArcelorMittal for entering into a JV for automotive Steel Business.”

It added “However, definitive agreements in this regard will be finalised in due course subject to financial viability.”

SAIL and ArcelorMittal had entered into an MoU in May 2015 to explore the possibility of setting up an auto-grade steel manufacturing facility under a joint venture in India.

Source : Strategic Research Institute
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Canada begins sunset review of standard steel pipe duties from Taiwan, India, Oman, South Korea, Thailand and the UAE

The Canada Border Services Agency has initiated an investigation to determine whether the expiration of duties on imports of standard pipe from six countries would result in the continuation or resumption of dumping and/or subsidization.
The CBSA said it will make a determination no later than May 7, 2018, and will issue a statement of reasons by May 22, 2018.

Subject to the five-year "sunset" reviews are antidumping duty orders on imports from Taiwan, India, Oman, South Korea, Thailand and the UAE. Additionally, the CBSA will investigate the sunsetting of countervailing duties established to offset subsidies provided to Indian producers.

In 2012, the initial CBSA investigation on standard pipe imports determined the AD margin for all exporters without company-specific rates at 54.2%. It determined AD margins for specific exporters from Taiwan at 0-4.7%; India, 11.6%; Thailand, 3.8-5.4%; and the UAE, 0-8.4%.

For India, the amount of subsidy determined five years ago was Rupee 3,577/mt (US$65.85/mt at that time) for Manu International and at Rupee 23,872/mt (US$439.48/mt) for all other Indian exporters.

The subject goods are defined as carbon steel welded pipe, commonly identified as standard pipe, in the nominal size range from ½ inch up to and including 6 inches (12.7 mm to 168.3 mm in outside diameter) inclusive, in various forms and finishes, usually supplied to meet ASTM A53, ASTM A135, ASTM A252, ASTM A589, ASTM A795, ASTM F1083 or Commercial Quality, or AWWA C200-97 or equivalent specifications, including water well casing, piling pipe, sprinkler pipe and fencing pipe, but excluding oil and gas line pipe made to API specifications exclusively, originating in or exported from Chinese Taipei, India, Oman, Korea, Thailand, and the UAE.

The subject goods are normally imported into Canada under the following Harmonized System (HS) tariff classification numbers:

From January 1, 2012 to December 31, 2016
7306.30.00.14
7306.30.00.19
7306.30.00.24
7306.30.00.29
7306.30.00.34
7306.30.00.39

As of January 1, 2017

7306.30.00.10
7306.30.00.20
7306.30.00.30

As part of its expiry review investigation, the CBSA forwarded questionnaires to the Canadian producer, importers, exporters and to the Government of India. Any Canadian producers, importers or exporters who have not received a letter from the CBSA who wish to provide a response to the questionnaire are advised to contact the officers identified below. Responses to all questionnaires are due at the CBSA’s office in Ottawa by January 16, 2018.

Source : Strategic Research Institute
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Tenaris unveils seamless steel pipe mill at Bay City in Texas

Tenaris unveiled its USD 1.8 billion state-of-the-art seamless pipe mill in Bay City, Texas, before local, state and federal representatives, including U.S. Department of Energy Secretary Rick Perry and Texas Governor Greg Abbott. Tenaris customers, community members and employees also joined the ceremonial launch. Paolo Rocca, Tenaris Chairman and CEO, said "TenarisBayCity shows our commitment to domestic manufacturing, competitively supplying the US oil and gas industry. This mill, which incorporates the most advanced technologies available worldwide, will lead our domestic industrial and service network dedicated to the US market," he added.

The 1.2 million square foot mill incorporates a high level of automation and cutting edge technologies into its production of seamless pipe. The facility is also the company's most environmentally efficient mill, seeking LEED certification.

Tenaris's new mill has the capacity to produce 600,000 tons of OCTG, annually, and is a critical piece of infrastructure driving the company's services oriented strategy known as Rig Direct™. The direct-to-customer model synchronizes customers' drilling operations with pipe manufacturing, delivering products and services when needed, as needed. To date, nearly two-thirds of Tenaris's oil and gas customers in the US are using Rig Direct™.

OCTG produced at the seamless pipe mill in Bay City, Texas, will be shipped directly to customer rig sites or stored at Tenaris service centers in Bay City, Freeport, Midland or Oklahoma.

Source : Strategic Research Institute
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Kobe Steel Scandal - Crack and an oil leak found on Japan bullet train

Straits Times reported that Japan's bullet train's track record of zero safety problems was tarnished when a crack and an oil leak were found on a shinkansen that was pulled out of service midway on Monday. But the early discovery of the faults means Japan has kept its record of no fatalities or injuries to passengers since the shinkansen began operations in 1964.

Still, the Japan Transport Safety Board, in announcing an inquiry, used the label "serious incident" for the first time.

The Nozomi 34 service had suffered a "structural anomaly" that measured over 10cm, the board said. It could have led to a deadly high-speed derailment.

Experts, however, were optimistic the incident would not affect Japan's international bids for major high speed rail projects.

Corporate governance expert Martin Schulz of the Fujitsu Research Institute told The Straits Times that "Japan has an unchallenged record of accident-free, high-speed train operations, and this incident fortunately did not break the safe run because it was discovered in time."

He added that "I very much doubt it will have any negative impact on Japan's overseas railway projects, which often are decided by complex policy considerations, and not just quality and cost-performance concerns."

Nozomi 34 begins its east-bound five-hour journey from Hakata station in downtown Fukuoka in the south-west, and ends at the central Tokyo station. The journey also covers the Osaka-Tokyo route that is Japan's busiest.

Source : Straits Times
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SC raises cap on iron ore production for ‘A’ and ‘B’ category mines in Karnataka
Mining News - Published on Fri, 15 Dec 2017

In a major relief to steel and mining industry, the Supreme Court on Thursday increased the cap on the production of iron ore from 30 million tonne per annum to 35 million tonne per annum for the ‘A’ and ‘B’ category mines in Karnataka. At present, around 27-28 million tonne of iron ore is mined in the state. A bench led by Justice Ranjan Gogoi accepted the recommendations of the apex court-appointed Central Empowered Committee (CEC) for enhancement of the cap for category A and B mines in the three district of Bellary, Tumkur and Chitradurga.

It said that ground situation, including significant improvements in the infrastructure, had changed and even the “assessment of reserves has changed over the years and today the iron-ore reserves across Karnataka, comprising haematite and magnetite reserves, is to the tune of 10.071 BMT (billion metric tonnes),” thus the solution “has to be realistic.”

The cap was fixed in August 2011 and September 2014 since there was virtually no control or effective regulatory measures as to the maximum output that could be generated by a particular mine, it said. “There was no scientific study of the iron ore reserves allocated to a particular mine in the lease granted. As a result, it was virtually a free for all exercise designed to achieve the maximum profit within the shortest possible timeframe. “There was rampant and illegal mining with encroachments into forest land, particularly for use as overburdened dumps resulting from excessive mining. This had led to environmental and ecological depredation to an extent that necessitated judicial intervention to resolve a situation which is the normal course may have fallen within the executive domain,” the apex court said.

The apex court banned mining of iron ore in Karnataka in July 2011 following allegations of illegal mining that had resulted in large scale abuse of the environment. However, it had on April 18, 2013 allowed mining in the state, but with the cap of 30 million tonnes per annum. It, however, had canceled all 51 leases in Category-C, while reiterating clearance for 18 Category-A mines.

Source : Financial Express
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Opvallend!

Metals.com announces World's First Asteroid Mining Metals Fund

Metals.com announced that first asteroid mining venture fund by a non government entity. The venture capital arm aims to invest in private sector scientific teams to deploy asteroid mining probes to near-Earth orbit by 2026.

Mining asteroids might sound like the premise of a science fiction movie, but thanks to private space billionaires Elon Musk and Jeff Bezos (founders of SpaceX and Blue Origin rocket companies) the cost of space travel is shrinking drastically.

NASA Scientists believe Psyche, one of the largest objects in the asteroid belt, may contain enough nickel, iron and precious metals to fill the entire state of Massachusetts completely. Its value is said to be worth over USD 10 quadrillion dollars and could supply the world production requirement for several million years. To put this figure into perspective, USD 10 quadrillion roughly translates into all of the money on the planet (from every country) that is currently in circulation, put together, and multiplied by 111.

A study at the Keck Institute for Space Studies at Caltech estimates that one full-cycle asteroid capture and return mission, moving an asteroid weighing 1.1 million pounds, would cost approximately USD 2.6 billion.

Mr Noah Poponak, aerospace and defense research analyst at Goldman Sachs said that "Space is becoming smaller, closer and cheaper making room for new applications, new technologies and competitors."

Dr Lindy Elkins-Tanton, the lead scientist on the mission and the director of Arizona State University's School of Earth and Space Exploration, said that "The Psyche asteroid is a very compelling target, first of all because we get to see a metal world for the very first time."

Mr John Crestani Senior Fellow and Chief Futurist at metals.com said that "Extracting metals from the Psyche asteroid is not in NASA's plans." He added that "NASA's Discovery program is capped at only USD 450 million and they will merely demonstrate it's feasible with current technology."

Source : Strategic Research Institute
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'Dochter ArcelorMittal verkoopt onderdeel'

Gepubliceerd op 15 dec 2017 om 21:25 | Views: 91

ArcelorMittal 17:35
26,13 -0,51 (-1,90%)

PRAAG (AFN/BLOOMBERG) - ArcelorMittal Ostrava, de Tsjechische dochter van staalconcern ArcelorMittal, verkoopt een onderdeel aan het Poolse Stalprodukt. Dat heeft het bedrijf laten weten aan Tsjechische media. Een overnamebedrag is niet naar buiten gebracht.

Het gaat om Valcovny Plechu Frydek-Mistek, de divisie die zich bezighoudt het koud walsen van staal. Er zouden ongeveer 460 mensen werken. ArcelorMittal Ostrava heeft in totaal bijna 7000 werknemers.
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Italiaanse CDP en Intesa Sanpaolo sluiten zich aan bij ArcelorMittal - media
Marcegaglia vertrekt mogelijk uit consortium.

(ABM FN-Dow Jones) Het Italiaanse nationale investeringsfonds CDP en Intesa Sanpaolo hebben een niet-bindende overeenkomst gesloten om zich bij ArcelorMittal aan te sluiten in de overname van de Italiaanse staalfabriek Ilva. Dit stelden diverse bronnen vrijdag tegenover persbureau Reuters.

CDP en Intesa zouden volgens de bronnen voor omgerekend 100 miljoen euro willen meedoen en de investering zou in ruil zijn voor het belang dat Marcegaglia momenteel in het consortium met ArcelorMittal heeft.

Brussel is een diepgaand onderzoek gestart naar de overname van de Italiaanse staalfabriek Ilva door ArcelorMittal en Marcegaglia. Er bestaan zorgen bij de Europese toezichthouder dat door de overname er minder concurrentie ontstaat voor bepaalde staalproducten, waardoor de prijzen mogelijk zullen stijgen. Het vertrek van Marcegaglia uit het consortium zou de zorgen van Brussel mogelijk weg kunnen nemen, aldus de bronnen.

Het aandeel ArcelorMittal sloot vrijdag 1,9 procent lager op 26,13 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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EU stelt deadline Arcelor-overname Ilva uit

Gepubliceerd op 18 dec 2017 om 11:33 | Views: 1.435

ArcelorMittal 16:16
26,55 +0,42 (+1,59%)

BRUSSEL (AFN/BLOOMBERG) - De Europese Commissie stelt de deadline voor haar onderzoek naar de voorgenomen overname van het Italiaanse staalbedrijf Ilva door staalproducent ArcelorMittal uit tot 4 april.

In november werd gemeld dat Brussel een diepgaand onderzoek is begonnen naar de overname. De Europese Commissie heeft zorgen dat hierdoor mogelijk de concurrentie op de markt voor bepaalde platte staalproducten in gevaar komt. De commissie vreest dat door het samengaan van de ondernemingen de prijzen omhoog zullen gaan.

In juni werd bekend dat Arcelor samen met partner Marcegaglia de Italiaanse branchegenoot Ilva overneemt. Er werd overeenstemming bereikt over onder meer de koopprijs, die 1,8 miljard euro bedraagt. Ilva is eigenaar van de grootste staalfabriek van Europa in de Zuid-Italiaanse stad Tarente.
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China adjusts export tariffs on some steel making input materials, scrap, semis and special steel for 2018

China’s Ministry of Finance, in a series of measures that could boost shipments, announced that China will adjust import & export taxes on many items including some steel making input materials, semis and special steels from January 1st 2018. While clarity about various finished steel is yet to emerge, the move will eliminate export duties on pig iron from 20% to nil, ferro silicon from 25% to 20%, ferro silcomanganese from 20% to nil, ferro chrome from 40% to 15%, various types of steel scrap from 40% to nil. Some media reports say that stainless steel plate export tariffs will fall to 5% from 10%, while billet tariffs will be 10%, down from 15% currently. But not all the adjustments will be in one direction. Some export tariffs will be raised. Ferro titanium, ferro vanadium, ferro niobium etc will be taxed at 10% as against nil in 2017.

Meanwhile, China will implement conventional tariffs (Agreed Customs Rate) with 26 countries in a bid to promote the construction of nations alongside One Belt One Road and free trade zones.

Source : Strategic Research Institute
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Why is Indian steel demand slow to realize its growth potential?

Mr Adam Szewczyk, Head Economic and Statistical Analysis of worldsteel, wrote that one year ago, while visiting India, I witnessed first-hand the Modi government’s shock announcement banning the use of 500 and 1,000 rupee bank notes. On my visit to India last month to present wordsteel’s steel demand outlook at the Platts Steel Markets Asia Conference, this so-called demonetisation move intended to scrap black money and counterfeiting, along with the recently introduced Goods and Services Tax (GST) designed to streamline a fragmented taxation system, were the two topics polarising the Indian society.

An important takeaway from this debate is that India has been making steady, if not impressive, progress in its reform efforts and the process may even gather pace with every Indian state competing to improve their business and investment environment. The GST implementation on July 1, 2017 can in this respect be viewed as an important landmark in India’s transformation process.

Replacing multiple state taxes, the universal GST tax scheme is expected to reduce the logistics costs and improve tax administration in the long-term. However, there are voices being raised concerning the impact of demonetisation and GST on small enterprises and the agriculture sector.

While India is already one of the fastest growing economies in the world with its GDP set to increase above 7% in the next two years, according to the IMF, we can expect India’s growth potential to be enhanced over time as India makes more and more reforms.

How does India’s steel demand prospect fit into this constantly evolving landscape?
In the past couple of years, India’s steel demand has not been performing particularly well partly due to the above-mentioned reforms but also due to a sluggish private investment resulting from a highly leveraged corporate sector. But on average, in the past decade, India’s steel demand has been growing on a par with the GDP: during 2001-2016, GDP grew at 7.34% and steel use at 7.43%. This is a different scenario to that of China where steel demand grew at a rate that was much faster than GDP during the take-off period.

Can we expect to see this same pattern in India in the future?
Not so likely. Everybody agrees that India’s steel demand has big potential considering its huge population and still low-level of infrastructure and housing development. However, it is not expected that India will replicate China’s explosive growth pattern. India’s growth model is very different from that of China – it is more service-oriented and inward-looking, more environmentally conscious with a stronger focus on equity, and less controlled by a strong central government.

Therefore, India is likely to show an S-curve (the relationship between per capita income and per capita steel use) which will be less steep than that of China. However, the other side of the coin might be that it will take longer for India’s steel demand to peak compared to China – China’s steel demand has increased dramatically since 2000, but then peaked in 2013.

Source : Strategic Research Institute
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SAIL supplies around 70% steel for Mizoram’s biggest Tuirial Hydro Electric Project


Committed to supply and partake in the projects of national development, Steel Authority of India Ltd. (SAIL) has supplied around 70% steel for the Tuirial Hydro Electric Power project, Mizoram’s biggest power project. This was dedicated to the nation by Hon’ble Prime Minister of India Mr Narendra Modi. SAIL has supplied approximately 5000 tonnes of PM Plates, Structural and TMTs for this project including value added steel ASTMA 537 Cl1 plates.

SAIL is supplying steel for several vital projects in country’s north eastern region. The Company supplied around 90% steel for constructing country’s longest Dhola-Sadiya bridge in Assam, which was also recently inaugurated. Other than this, SAIL is supplying steel for projects including Bogibeel Rail-cum-Road bridge, several power plants including 750 MW power plant of NTPC, 600 MW Kameng Hydro-electric project, Trans Arunachal highway etc which all are very important projects for the region.

Source : Strategic Research Institute
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Lenders propose new plan to fast-track Essar Steel resolution

Economic Times reported that lenders to Essar Steel are reducing the time taken to resolve the biggest default in the industry by mandating that whoever is the bidder must have at least INR 500 crore in cash balance, or provide a bank guarantee for a similar amount, and simultaneously provide a resolution plan with the stamp of approval from the resolution professional. This was decided over a series of meetings held by the committee of creditors. The report quoted two senior officials aware of the matter as saying that “In what the lenders term as 'single stage' process to expedite the resolution, any conditions to be considered by the bankers.”

Under the new plan, the bidder with cash balance, or bank guarantee of Rs 500 crore, will have to give a binding offer. Those shortlisted will have to give binding bids following which they will have access to financial and technical data of the company. The lenders will then negotiate with the top five candidates that are short listed.

Earlier, lenders had decided on a two-stage process, in the first stage of which bidders with Rs 500 crore cash balance will have access to financial data. In the second stage, the resolution professional will shortlist bidders depending on the resolution plan they provide. The shortlisted bidders will have access to technical data about the plant and machinery of the company.

The whole process will take another three months. Lenders have time till mid of March 2018 to arrive at a resolution plan.

The firm owes INR 49,000 crore to financial creditors and INR 22,917 crore to operational creditors.

Several private equity funds such as AION and SSG Capital and large steel companies such as Tatas, ArcelorMittal, Jindals and Nippon have shown interest in acquiring Essar Steel. The Ruias, promoters of Essar Steel, were also keen on participating in the resolution plan in partnership with PEs. But the amended Insolvency and Bankruptcy Code bars defaulters with one year of dues to bid for their own company. Senior officials from the banking circles said that the Ruias will have to arrange for at least INR 7,000 crore to be eligible to take part in the process. The steel company is wholly owned by the Ruias after the promoters brought shares of minority shareholders.

Source : Economic Times
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ED freezes assets of Mr Promod Mittal worth Rs 245 crore in STC fraud case against Global Steel

PTI reported that the Enforcement Directorate (ED) has frozen assets worth INT 245 crore in connection with its money laundering probe in the alleged fraud of INR 2,200 crore with the State Trading Corporation (STC). ED said "Proportionate share of Mittal and Global Steel Holding Ltd in Balasore Alloys Limited which includes building, plant and machinery of Balasore Alloys valued at about INT 244.89 crore has been attached in lieu of the proceeds of crime.”

It said “Investigation revealed that Mittal and Global Steel Holding Limited are holding 30.35 per cent of the shareholding of Balasore Alloys through various Indian/ foreign promoter and investment companies and thus have proportionate share of the said percentage in the fixed assets of Balasore Alloys.”

The agency had early this year registered a criminal case under the Prevention of Money Laundering Act (PMLA) against Ms Global Steel Holding Limited, its chairman Pramod Kumar Mittal and others based on an FIR by the CBI.

The agency has earlier attached shares of INR 62 crore (market value) in the name of Mittal and others in this case.

The CBI case had been registered on the basis of a complaint from the PSU, the STC. It was alleged that Mittal committed "criminal breach of trust" as he failed to make payments as per terms and conditions of the agreement with STC. The STC had arranged export of raw material for new steel plants of Global Steel Philippines Inc (GSPI) in the Philippines and Bosnia, and also opened a line of credit for the company the complaint had stated. It had said that despite irregular payments and piling up of credit, STC officials allegedly renewed line of credit to the company.

Source : PTI
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RDSO officials at JSPL Raigarh steel plant to assess rail mill

PTI, citing a source privy to the matter reported that a team of railway officials are visiting Raigarh steel plant of JSPL. The report quoted the source as saying that A team of Railways comprising officers from Research Design and Standards Organisation (RDSO) are camping in Raigarh and performing an assessment of the JSPL's plant.

The Ministry of Railways has recently floated a global tender to procure rails. This is the first time that railways have come up with such a tender.

At present, state-run Steel Authority of India is the only company supplying rails to the country's largest transport network railways.

Jindal Steel and Power Ltd (JSPL) is the only private company in the country which produces rails.

Source : PTI
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