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Digital Investment Unlocking Productivity Improvements at BlueScope Steel

BlueScope announced that it is mobilizing a digital program to unlock the next wave of customer growth and productivity improvements across the business. The opportunities span manufacturing, supply chain, sales and marketing, support functions and the customer experience. Initially, we aim to leverage the use of emerging technologies and digital tools to focus on advanced analytics and automation. One key initiative is the development of an advanced analytics program across our coating and painting assets. The aim is to drive value through a step change improvement in performance, in addition to the investment in building new capabilities in digital technologies and advanced analytics that can be applied across our business over time.

This digital coating line analytics program services both New Zealand and Australia. Already, a number of use cases have been identified to optimise performance by increasing throughput and reducing waste in the processes. These findings help BlueScope to continue to build sustainable capability in digital technologies across the business.

Source : Strategic Research Institute
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NLMK Supplies Steel for Belgian Highway Artwork

NLMK has supplied the material used for a distinctive new artwork constructed along a major highway. Called the Arc Majeur, the 60m arch comprises three sections, each 20m long. The artwork is the brainchild of artist Bernar Venet, who first envisaged the structure over 30 years ago. The distinctive structure is located along the important E411 route, close to Lavaux-Sainte-Anne between the provinces of Namur and Luxembourg in southern Belgium, close to the Ardennes Forest and the French border.

As well as being 60m high, the arch has a span of 75m and features 200tonnes of steel as well as 1,000tonnes of concrete. The largest single component weighs 56tonnes. Raising the arch into position has required a lifting system with a capacity of 750tonnes. Specialist ultrasonic testing technology from the Vincotte Group has been used to ensure that the structure meets quality requirements. Meanwhile the design has also been verified by engineering experts from a university to ensure that it will cope with the various climactic conditions. The project cost close to EUR 2.5 million and this is claimed to be the largest metal sculpture in the world.

Source : Strategic Research Institute
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Emissions Reduced at New Zealand Steel

BlueScope Steel announced that 2 projects at New Zealand Steel’s Glenbrook site have led to substantial emissions reductions and have reduced demand for external electricity and gas. Working with Alinta Energy, New Zealand Steel’s core supplier of steam and co-generated electricity, changes were implemented to improve off-gas and heat recovery in the Multi Hearth Furnace afterburners, and to increase steam generation in the MHF boilers. These projects have increased electricity generation by 55,000 MWh per annum, reduced annual purchased electricity by 13 per cent, and lowered GHG emissions by approximately 6,500 tonne CO2-e per annum.

Meanwhile, the Rolling Mill team implemented a new approach for continuous operation of the Rolling Mill reheat furnace under much tighter operating conditions. The result is improved yield, and savings in use of natural gas estimated at 62,000GJ per annum, equivalent to 3,700 tonne CO2-e.

Source : Strategic Research Institute
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Clarity Needed for Trinidad and Tobago Steel Plant

NewsDay reported that the effort to revive steel production in Trinidad and Tobago stalled last week when ArcelorMittal receiver Christopher Kelshall missed a meeting at the Couva/Point Lisas Chamber of Commerce office. It was one more episode in the long history of the ISCOTT steel mill, built as a cornerstone of the Point Lisas development project and beginning operations in 1980 with a flush of ambition for the country’s industrial future. The company never fulfilled that dream and almost immediately ran into technical and financial difficulties.

ISCOTT began operating just as steel production fell into decline after a mix of price wars and alternative materials reshaped the market. When the plant was first leased and then sold to Laskshmi Mittal in 1989, any hope of turning around the company was long gone.

Source : NewsDay
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China Imports of Scrap Steel sank to Zero in August

Bloomberg reported that China’s imports of steel scrap sank to zero last month for the first time this century, a milestone for the nation that’s tipped to turn into a significant exporter in the next decade. According to customs data released on September 23, The world’s top steel producer bought no scrap at all from overseas in August, capping years of dwindling volumes, after President Xi Jinping imposed sweeping curbs on all imports of solid waste to help protect the environment. Purchases have fallen this year despite high iron ore prices and a tight domestic scrap market factors that would normally spur more imports.

In the short-term, the absence of scrap imports offers a modicum of support to iron ore, most of which is supplied by mines in Australia and Brazil and which vies with the secondary metal as a feedstock for steel mills. After 2020, China’s domestic scrap supply is expected to rise significantly as a wave of metal contained in everything from cast-off cars to demolished buildings flows back into the supply chain.

Consultancy Kallanish Commodities Ltd wrote in a report that “Scrap imports will eventually face a far more significant barrier: growing domestic scrap supply. We expect that China will likely be transformed into a net exporter of scrap steel in the long run.”

Source : Bloomberg
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Metalloinvest Announces Early Repayment of Eurobonds-2020

A leading global iron ore and HBI producer and supplier, and one of the regional producers of high-quality steel Metalloinvest announced that it has elected to make early repayment of its Eurobonds-2020. In order to optimise its loan portfolio, the Company has decided to redeem its outstanding Eurobonds of a principal amount of USD 270.6 million. The bonds maturity date was scheduled for April 2020.

Mr Alexey Voronov, Finance Director of Management Company Metalloinvest, commented that “In line with the Company’s Debt Management Strategy, we decided to exercise a make-whole call pursuant to Eurobond-2020 and repay the outstanding Eurobonds prior to the scheduled maturity date in April 2020.

The noteholders were informed of the early repayment. The Eurobonds’ repayment will be financed by the new PXF-2019 loan signed with international and Russian banks last week. Following the any and all Eurobonds-2020 tender offer completed in April 2017, the outstanding Eurobonds’ nominal value was USD 332.7 million, while the total issue size had been USD 1 billion. Additionally, in 2019, the Company completed a partial repayment of the Eurobonds-2020 in the principal amount of USD 62.1 million. As a result, the current outstanding principal amount of the Eurobonds is USD 270.6 million.”

Source : Strategic Research Institute
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Rathi Steel & Power Ltd Operates Ghaziabad Unit on Job Work Basis

Due to financial stress and in order to keep the manufacturing unit operating and also to maximize the operating levels, Rathi Steel & Power Ltd is operating its Ghaziabad Unit on Job Work Basis.

Source : Strategic Research Institute
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ArcelorMittal to review Canada, Brazil iron assets

27TH SEPTEMBER 2019

BY: BLOOMBERG

LONDON – ArcelorMittal is evaluating a potential sale of some of its iron-ore operations, as the world’s biggest steelmaker seeks to cut debt by divesting non-core businesses, people familiar with the matter said.

The company is reviewing its iron ore assets in Canada, Brazil and Liberia, the people said, asking not to be identified as the matter is private. ArcelorMittal is speaking with financial advisers about options including selling partial or full stakes in at least some of the assets, according to the people. The Canadian business is the largest and more profitable of the three and could be valued at about $2-billion in any transaction, the people said.

ArcelorMittal hasn’t kicked off a formal sale process, and it could decide to keep the operations, the people said. A representative for ArcelorMittal declined to comment.

The shares climbed 2.1% to 12.94 euros as of 9:52 a.m. in Amsterdam.

European producers have been hit by a slump in demand from the auto industry and competition from cheap imports. That’s also making it hard for them to pass on to customers higher prices for iron ore, a key steelmaking ingredient, that are being stoked by mine closures in Brazil.

DIVESTMENT PLANS

ArcelorMittal said in August that it has the potential to “unlock” $2-billion from its portfolio in the next two years, signaling plans to sell non-core units. It is exploring a sale of a downstream construction business as it divests peripheral operations, people familiar with the matter said this month.

The company is one of the world’s largest iron ore producers, with operations in countries including the US, Mexico, Bosnia, Ukraine, and Kazakhstan, according to its website. In 2013, the company sold a 15% stake in its Canadian mining business to a consortium led by Posco for $1.1-billion, data compiled by Bloomberg show.

ArcelorMittal’s mines and strategic contracts produced 58.5 million metric of iron ore last year. Its iron ore and metallurgical coal mining operations accounted for about 35% of earnings before interest, taxes, depreciation and amortization in the quarter ended June 30, data compiled by Bloomberg show.

The company’s Canadian business produces more than 26-million tons of iron ore concentrate a year, according to its website. It has annual iron-ore production capacity of 7.1-million tons in Brazil.

ArcelorMittal has struggled for years with its Nimba iron ore operation in Liberia, halting an expansion plan after Ebola devastated the West African country in 2014. It also owns rail and port infrastructure around the mine, which could also be useful for iron-ore projects across the border in Guinea being developed by groups backed by billionaire investor Robert Friedland and serial mining dealmaker Mick Davis.

EDITED BY: BLOOMBERG

www.miningweekly.com/article/arcelorm...
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Thyssenkrupp krijgt Martina Merz als topvrouw

Gepubliceerd op 30 sep 2019 om 15:33 | Views: 293

ESSEN (AFN/BLOOMBERG) - De Duitse industriegigant Thyssenkrupp krijgt Martina Merz als topvrouw. Ze begint aan haar nieuwe functie op 1 oktober. Daarmee eindigt de aanstelling van de huidige topman Guido Kerkhoff voortijdig. Het concern gaf onder zijn leiding vier winstwaarschuwingen en zag de aandeelprijs halveren.

Merz was al president-commissaris bij het Duitse concern waar ze sinds 2018 werkt. Eerder stond ze aan het roer van autoremmenproducent Chassis Brakes International. Ze was in het verleden ook werkzaam bij technologiebedrijf Bosch en was lid van de raad van commissarissen bij luchtvaartmaatschappij Lufthansa.

Thyssenkrupp, dat onder meer staal, liften en auto-onderdelen maakt en industriële oplossingen biedt, heeft op veel vlakken last van tegenwind. Zo heeft de auto-industrie te lijden onder handelszorgen en heeft de staaltak het lastig vanwege een dalende prijs voor dat metaal. Ook stijgen de personeelskosten in Duitsland.
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Beursblik: UBS verlaagt koersdoel ArcelorMittal

FONDS KOERS VERSCHIL VERSCHIL % BEURS
ArcelorMittal
12,876 -0,138 -1,06 % Euronext Amsterdam

(ABM FN-Dow Jones) UBS heeft maandag het koersdoel voor ArcelorMittal verlaagd van 16,00 naar 13,00 euro en handhaafde het advies op Neutraal.

Volgens de analisten heeft ArcelorMittal in het derde kwartaal tegenwind ondervonden van dalende staalprijzen en een zwakke vraag.

UBS verlaagde de taxaties voor de EBITDA voor dit jaar en volgend jaar met 15 tot 20 procent, naar respectievelijk 5,3 miljard en 5,5 miljard dollar. Daarmee zit de bank 15 procent onder de consensus.

De analisten denken lagere inkoopkosten en Ilva, de overgenomen Italiaanse staalfabriek, slechts een bescheiden verbetering zullen laten zien in 2020, terwijl de vraag zwak blijft.

Het aandeel ArcelorMittal steeg maandag 0,2 procent naar 13,04 euro.

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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Rio Tinto schrapt desinvesteringsplannen Canadese ijzerertsdivisie

FONDS KOERS VERSCHIL VERSCHIL % BEURS
Rio Tinto PLC
£ 42,175 -0,32 -0,75 % London Stock Exchange

(ABM FN) Rio Tinto heeft de plannen om zijn Canadese ijzerertsdivisie naar de beurs te brengen of te verkopen, geschrapt. Dit schreef The Wall Street Journal maandag op basis van een bron.

De Brits-Australische mijnbouwgroep is al sinds 2013 af en aan op zoek naar een koper voor het belang, maar kon nooit een prijs overeenkomen met geïnteresseerden. In het afgelopen jaar heeft Rio Tinto de zoektocht geïntensiveerd, maar zonder succes.

Mijnbouwbedrijven wereldwijd, waaronder Rio Tinto, bekijken al jaren naar mogelijke desinvesteringen om zo de schulden terug te brengen en om het rendement voor aandeelhouders te verhogen door zich alleen te richten op de kernactiviteiten.

De ijzerertsprijzen stegen dit jaar tot het hoogste niveau sinds 2014 vanwege zorgen over een tekort aan ijzererts. Inmiddels zijn de prijzen weer wat afgezwakt en wordt er voor volgend jaar zelfs een daling verwacht.

Bestuurders van Rio Tinto lieten al eerder weten dat zij geen haast hebben met het afstoten van de Canadese activiteiten.

Door: ABM Financial News.
pers@abmfn.be
Redactie: +32(0)78 486 481

© Copyright ABM Financial News B.V. All rights reserved.
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ArcelorMittal Seeks Innovative Ideas from Paint Supplier Innovation Awards

Since their creation in 2014, the Paint Supplier Innovation Awards have proved to be true catalysts for innovation for ArcelorMittal in the field of pre-painted steels. Over the years, 30 ideas arising from this challenge, either aimed at either developing new products, or improving or developing new processes specific to organic coatings, have been incorporated into research projects, including the specific “Organic Coating Renewal” project which acts as an incubator to supply future and innovative product offerings to the market. ArcelorMittal is the European leader in pre-painted steels. Retaining that leadership position requires constant innovation, in partnership with suppliers but also with contributors from the academic world or from start-ups. Today, products must have a longer life, be "smart", sustainable, healthier and safer.

Mr Jean-Luc Thirion, Director of Flat Products Research and Development at ArcelorMittal said that “At the same time, competition is increasing, both with the arrival of new players on the market and with alternative materials. It is therefore vital to offer products and services that are differentiated from those of our competitors, to anticipate the organic coated steels of the future by seeking breakthrough ideas on products, paint application technologies or the digitalisation of processes. Our objectives are leading us to devote almost a quarter of our budget to research into breakthrough products, processes and services in this field. And the PSIA are an important source of new ideas.”

The annual awards event has once more revealed some promising ideas. Judging panel members from various ArcelorMittal departments in Europe and Canada - research and development, purchasing and marketing - have designated the following winners in four distinct categories:

1. The Smart Coating Beyond Incremental Innovation Award for the performance improvement when new functional and active coating technologies are used was awarded to Salchi Metalcoat.

2. The Sustainability & Circular Economy Award, in recognition of the optimal use of scarce resources (raw materials and energy) and by-products for coil coating industry, was presented to Sherwin Williams.

3. The Industry 4.0 Award in recognition of differentiated products & services by means of digitalisation went to AkzoNobel.

4. The Best Innovation Partner Award of Merit honours the service and support provided to innovation throughout the new product launch process. The judging panel, based on the number of products launched in the last five years, as well as the number of innovative ideas proposed, decided to grant this award to Beckers Group.

Source : Strategic Research Institute
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Ceo Guido Kerkhoff van ThyssenKrupp vertrekt en krijgt gouden handdruk van zes miljoen

Guido Kerkhoff treedt terug als ceo van ThyssenKruppTKA:€12,75+0,55%. Martina Merz volgt hem op. Dat heeft het Duitse technologieconcern dat liften en roltrappen maakt, alsook staal voor onder meer onderzeeërs en auto's, maandag bekendgemaakt. Kerkhoffs vertrek zat eraan te komen.

Profiel Guido Kerkhoff

Guido Kerkhoff gaat ruig rechtsomkeert in stormachtige staalwereld.

Gouden handdruk

De Duitser krijgt een vergoeding van €6 mln mee, weet de Duitse zakenkrant Handelsblatt op te tekenen. De krant baseert zich daarbij op bronnen in de raad van toezicht. Dat is meer dan Kerkhoffs voorganger Heinrich Hiesinger. Die verliet de onderneming met €4,6 mln.

Kerkhoff was cfo onder Hiesinger die onverwachts vertrok, nadat hij een deal had beklonken met het Indiase Tata Steel over een Europese staalfusie. Hiesinger botste met de aandeelhouders, vooral met de Krupp-Stichting en de Zweedse investeringsmaatschappij Cevian over de te volgen strategie. Sindsdien is de turbulentie bij ThyssenKrupp nooit weg geweest.

Ook Kerkhoff slaagde er niet in voldoende steun te verwerven van de raad van toezicht. Conform de wil van activistische aandeelhouders wilde Kerkhoff aanvankelijk het conglomeraat met een jaaromzet van bijna €43 mrd en ongeveer 155.000 werknemers opsplitsen. Het plan was om de lucratieve liftendivisie te verkopen. Voor dat onderdeel waren diverse gegadigden, waaronder de Finse concurrent Kone Oyj en investeringsmaatschappijen CVC en KKR.

Tegenvallers

Maar toen in mei van dit jaar uit Brussel het signaal kwam dat de Europese Commissie een fusie met Tata Steel wilde verbieden, kwam Kerkhoff daarop terug. Een tegenvaller die Kerkhoff recentelijk moest incasseren was het afbreken van de onderhandelingen over de verkoop van een bedrijfsonderdeel van het staalbedrijf aan Klöckner & Co., een staalonderneming uit Duisburg. Wat zeker niet meehielp waren de tegenvallende resultaten en het feit dat ThyssenKrupp uit de hoofdindex van de DAX verdween.

fd.nl/ondernemen/1318525/ceo-guido-ke...
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Ms Martina Merz is New CEO of thyssenkrupp

Ms Martina Merz will take over as CEO of thyssenkrupp AG on October 1. This was unanimously decided by the Supervisory Board of thyssenkrupp AG in an extraordinary meeting last Friday. The current Chairwoman of the Supervisory Board will be delegated to the Group Executive Board for a maximum period of twelve months, after which she will return to the Supervisory Board. With Guido Kerkhoff, the current CEO, the Supervisory Board agreed on the mutual termination of his mandate on the Executive Board.

With the delegation of Martina Merz, the Supervisory Board followed the recommendations of the Personnel Committee. In addition, the Supervisory Board appointed Dr. Klaus Keysberg to the Executive Board of thyssenkrupp AG effective October 1. Keysberg, who will be responsible for the materials businesses on the Group Executive Board, has held various positions at thyssenkrupp since 1996 and has been CEO of the Business Area Materials Services since the beginning of the year. He will continue to hold this position until a successor is appointed.

Martina Merz's successor at the head of the Supervisory Board will be Prof. Dr. Siegfried Russwurm. The former Siemens Executive Board member has been a member of the Supervisory Board since April 2019.

Source : Strategic Research Institute
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Dillinger & Saarstahl Launch Joint Future Oriented Program

Dillinger and Saarstahl launch joint future-oriented program. Under the Program
1. Dillinger and Saarstahl: with an integrated strategy
2. Conversion to carbon-free production
3. Targeting double-digit profitability (EBITDA margin)
4. Cost savings amounting to EUR 250 million
5. Socially responsible reduction of 1,500 jobs and outsourcing of 1,000 jobs

Mr Tim Hartmann, Chairman of the Board of Management of Dillinger and Saarstahl said that “We are doing this in a completely integrated process at Dillinger and Saarstahl with the long-term goal of continuing the intergenerational contract.” He added that “We produce premium steels that are among the best in the world and that are sought by our customers. We will continue to work together with our customers to further develop our products. We will be launching a comprehensive sales offensive. The commitment of our employees is high. At the same time, our costs are too high when compared with our competitors. We will be adjusting our structures and processes accordingly in the coming months. The goal is double-digit profitability that gives us sufficient scope for growth investments. In addition, we are clearly aligning the entire company in the direction of carbon-free technologies. We meanwhile expect politicians to provide a fair competitive framework and sufficient funds in the short term to implement the transfer process. We want the most state-of-the-art steel industry to be here in Saarland.”

The ongoing structural crisis in the global steel market and the partial economic downturn in demand in segments such as the automotive industry and machine manufacturing, as well as the rising costs of the carbon certification system, have prompted us to set up an integrated strategy process to develop and implement measures to safeguard the future.

Source : Strategic Research Institute
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Salzgitter Group supplies Baltic Pipe Project

Salzgitter Mannesmann International GmbH has been awarded a major order in Denmark. Salzgitter Group subsidiaries and associate companies will produce and supply around 30,000 t of steel pipes and 90 steel pipe bends for the Baltic Pipe Project. This is an important European gas infrastructure project which will see Norwegian natural gas piped via Denmark to Poland. The pipes will be manufactured by Mannesmann Grossrohr (approx. 24,000 t) and EUROPIPE (approx. 6,000 t), with the bends being produced by Salzgitter Mannesmann Grobblech. The input material including slabs for the production of sheet and hot rolled coils will be supplied by other Salzgitter Group subsidiaries and associate companies. Salzgitter Mannesmann International GmbH will be responsible for the entire project coordination from preparation of offer through to execution of the order. The company will also safeguard the entire supply chain and collaborate with prominent financial service providers.

Between January and March 2020 Salzgitter Mannesmann International will ship pipes and bends to customer Energinet for Lot 2 of the project. Together with its road, rail and marine shipping partners, SMID will be responsible for the comprehensive project logistics including delivering and stacking pipes and bends at 24 different storage areas along the route of the pipeline.

Source : Strategic Research InstitutE
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Steel ministry wants to put off sale of NMDC Nagrnar Steel Plant

ET reported that the union steel ministry has called for deferring the proposed sale of NMDC’s Nagarnar Steel Plant in Chhattisgarh until the plant is commissioned, citing the huge investments involved and sensitivities of the Maoists-affected Bastar district where it is being built.

NMDC has invested INR 15;937 crore up to August end in the three million tonnes per annum plant and is expected to spend another INR 7;203 crore over the next 8-9 months. The plant is expected to be commissioned by June 2020.
Source : ET
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RINL Denies Allegation, Enjoys Excellent Support From NMDC

RINL has refuted the allegations made by Mr JV Satyanarayana Murthy, CPI State Assistant Secretary at a press conference on Sunday stating that the management of RINL picked up confrontation with NMDC. The allegations are “baseless and lacks substance”. It is clarified that RINL and NMDC have been maintaining excellent relationship with regard to supply of iron ore since inception of the steel plant at Visakhapatnam.

RINL has long term agreement with NMDC for supply of Iron Ore to meet its requirement. However the supply of iron ore from the NMDC mines in Chhattisgarh gets disrupted during the breakdown of KK line and impact on production during rainy season. During these disturbances, RINL ties- up from alternative sources for the required quantity like NMDC mines in Karnataka, Odisha Mining Corporation mines in Odisha and in extreme emergencies through tender. RINL has plans to source its requirement of Iron Ore during such exigencies from SAIL, considering the preliminary sanctions given to them recently.

Source : Strategic Research Institute
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Danieli Centro Tube Gets FAW for Benteler Steel Quality Seamless Pipe Mill in US

The Final Acceptance process is complete for the 5½” FQM Seamless Pipe Mill Plant supplied by Danieli Centro Tube to Benteler Steel/Tube, Shreveport, LA, USA. The plant is in full production now after the critical period of low oil prices, followed by a slow tube market, particularly in North America. The FQM plant has a production capacity of 320,000 short tons/year, producing pipes with OD sizes from 26.7 to 139.7 mm. Acceptance procedures successfully covered all the most important parameters, including productivity, piece rate, outside diameter (OD) and wall thickness (WT) tolerances, emissions, tooling consumption.

After acceptance, the Danieli Technical Services team will continue to support Benteler Steel/Tube through a dedicated program of technical assistance, overhaul activities for key components and spare parts.

Source : Strategic Research Institute
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Tamil Nadu Villagers Oppose Steel Plant Near Dharapuram

TOI reported that while a few villagers welcomed the move to set up a private alloy and steel plant at Vadugapalayam in the district, many villagers opposed it during a public hearing held in Dharapuram on Thursday. The public hearing was chaired by collector K Vijayakarthikeyan in the presence of officials from the district administration and Tamil Nadu pollution control. The private steel company has proposed to set up the plant on five acres in Vadugapalayam panchayat. It has sought environmental clearance from the State Environmental Impact Assessment Authority. Villagers who supported setting up of the industrial unit reasoned that the unit would bring in more employment opportunities for people in the region. But villagers who opposed the unit said that the unit may draw more groundwater and cause air pollution.

Tirupur south TNPCB district environmental engineer A M Shanmugam said that “Villagers said since groundwater was already scarce in the region, establishment of the unit may deplete the groundwater table further. But the plant, which was meant to convert iron scrap into steel rods and other steel structures, may not need much water. Moreover, the plant would have to install special machines and filters to control the air pollution. Such plants have been functioning in various places already.”

However, the authorities said they have recorded the public views about the plant, and the report will be forwarded to SEIAA, which would decide on the Environmental Impact Assessment clearance, and the government would take a final call on the license.

Source : TOI
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