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Liberty Ostrava Strike Alert over CO2Allowances Transfer to Galati

Czech media Aktualne reported that trade unions operating in the Liberty Ostrava have declared a strike readiness as the current overall difficult situation threatens the operation of the company. OS KOVO Liberty Czech Republic Chairman Mr Petr Slanina said that “The trade unions are following the development of the situation with great concern. We unequivocally reject the option of lending Liberty Ostrava emission allowances to the Romanian smelter in Galati. Allowances in the amount of over five million units at a price of around 40 euros per one are currently the last capital that the Ostrava steelworks has remained in the Liberty Steel Group after less than two years of operation. The value of allowances is over 200 million euros.”

The trade unionists appeal to the members of the management of the Ostrava steelworks to refrain from all steps that could result in the removal of property from the company.

GFG Alliance said it is disappointed with the union response and that everything it had committed to in Liberty Ostrava is true. It said "We are deeply disappointed by the reaction of the unions in Liberty Ostrava to the current situation, which will deepen the uncertainty after the fall of Greensill. We are ready to discuss and explain everything to allay the concerns of employee representatives. The smelter still has enough orders and raw materials for full production. Until the GFG Group secures its debt refinancing, the smelter manages all its cash flows with the utmost prudence. Everything the GFG Alliance in Liberty Ostrava has committed to is valid.”

In recent years, the Ostrava smelter has saved emission allowances and wants to use them to finance the necessary modernization of the smelter, especially for the construction of hybrid furnaces in the steel plant and the acquisition of more modern technologies for rolling mills. According to Ziarul Financiar quoting FT GFG Alliance’s Liberty Steel’s Romanian subsidiary Liberty Galati urgently needs EUR 100 million to purchase the CO2 certificates that it sold last year. The Romanian plant is reportedly in talks with sister company Liberty Ostrava from the Czech Republic to obtain the certificates that the Czechs did not use.

Liberty Ostrava produces steel mainly for the construction, engineering and petrochemical industries. It supplies its products to more than 40 countries. Its annual production capacity is 3.6 million tons of steel. Even with its subsidiaries, the company has 6,000 employees.

Source - Strategic Research Institute
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EU Industry Unions Comment on Industrial Emissions Directive

European industrial associations have issued a joint statement with regard to the climate change related policy options considered in context of the Targeted Stakeholders Survey on the revision of the Industrial Emissions Directive. They said “Our associations represent industrial sectors regulated under the Industrial Emissions Directive and support the Commission’s Green Deal objective to review EU measures to address pollution from large industrial installations, look at the sectoral scope of the legislation and how to make it fully consistent with climate policies. The disruptive breakthrough technologies necessary to significantly contribute to achieving the climate-neutrality objective will require time to be developed, up scaled and commercialised. On one hand, various GHG abatement options are not available to the same extent across sectors and regions, on the other they are not directly under the control of the operators of IED installations, who to large extent remain dependent on other sectors, notably the energy one.”

Mindful of the above considerations, the undersigned sectors have analysed the various policy options considered in context of the TSS and we support full coherency between policy measures addressing various environmental issues, in particular with regards to the IED that is the backbone of the environmental legislation applicable to our industrial installations. In the spirit of better regulation principles, amongst others, we reject the option to regulate GHG emissions under an IED permitting regime where those GHG are already regulated under the ETS.

We support

1. The revision of IED (Art 15(5)) to facilitate development and testing of emerging techniques

2. The revision of IED Article 21(3) to provide more than 4 years for deep transformation of industrial sectors, where BAT conclusions have recognised innovative techniques being BAT and require dramatic changes across a sector

We conditionally support

The upscale of the Industrial Emissions Innovation Observatory to monitor the Technology Readiness Level of emerging and breakthrough technologies and the fact that the recognition by the Observatory of an advanced TRL would trigger BREF reviews

We do not support

1. The deletion of the provision that exempts plants from setting GHG ELVs and energy efficiency requirements in permit conditions if they are regulated by the EU ETS (IED Article 9)

2. The identification of direct and indirect GHG as mandatory key environmental issues, so that GHG emissions are considered when identifying BAT alongside with pollutant emission

3. The setting of shorter BREF cycles focusing on recent innovations and their expected future environmental performance, i.e. Emerging Techniques Associated Emission Levels (ET-AELs)

4. The revision of IED Article 21(3) to allow more time for operators to implement higher performing emerging techniques with a high TRL (this would be supported by inclusion in BREFs of stricter long-term ET-AELs reflecting the expected environmental performance of emerging techniques)

EUROFER added that they have strong reservation regarding the option consisting in establishing a long-term permit review obligation (e.g. by 2035) focusing on the capacity of the concerned installations to operate in accordance with EU’s carbon neutrality objective.

A detailed analysis supporting those conclusions is provided in the paper.

www.eurofer.eu/assets/publications/po...

The associations include European Foundry Association CAEF, European Chemical Industry Council Cefic, European Cement Association Cembureau, European association representing the paper industry Cepi, The European Ceramic Industry Association Cerame-Unie, European Coil Coating Association ECCA, European Lime Association EuLA, EuroHeat & Power, Association of European ferro-alloy producers EUROALLIAGES, European Steel Association EUROFER, European Association of Metals Eurometaux, European Expanded Clay Association EXCA, Association o fertilizer manufacturers in the European Union fertilizers Europe, refinery operators group FuelsEurope, European Alliance & industrial energy users in Europe group IFIEC Europe.

Source - Strategic Research Institute
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SAIL BSP Plate Mill Produces Maraging Quality Plates for ISRO

PSU Connect reported that another consignment of MDN 250 slabs supplied by Misra Dhatu Nigam Ltd was successfully rolled into plates in Steel Authority of India Limited’s Bhilai Steel Plant’s Plate Mill on 12th April 2021 for use in the satellite launch vehicles of Indian Space Research Organisation. Midhani slabs weighing 40 tonnes were successfully rolled into 20 numbers of 9.3 mm thick plates. Successful rolling of maraging steel in SAIL BSO Plate Mill was achieved by meticulous planning in association with MIDHANI & ISRO’s Vikram Sarabhai Space Centre. These forged slabs of special steel of very high strength and high temperature resistance consisting of high percentage of alloying elements.

This was the 13th time that MDN 250 slabs have been rolled under strict tolerances into plates of desired thickness for use in SLVs used in India’s space research programmes. The previous occasion when 40 tonnes of MIDHANI slabs were rolled in SAIL-BSP’s Plate Mill was on 20th Oct 2020, prior to which rolling took place on 29th July 2020. The plates rolled were for use in ISRO’s satellite launch vehicle that would launch India’s ambitious Space Mission program Gaganyan.

Source - Strategic Research Institute
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AFR Reports Several Related Party Transactions in GFG Alliance

Australian Financial Review reported that the mountain of related-party transactions between entities in Mr Sanjeev Gupta’s complex web of companies is reinforced in one of his lesser-known Australian entities. As per AFR report “The financial accounts for Liberty OneSteel Corporate Services Pty Ltd, lodged with the Australian Securities and Investments Commission for the 12 months ended June 30, 2020, audited by KPMG, underline the interdependency of the Gupta companies. The accounts state the company was in a net liability position at June 30, 2020, as its activities have been funded through loans from a related party, which the company identifies as wholly-owned members of the Liberty InfraBuild Ltd group. The InfraBuild group has certain priority financing agreements in place which means early repayment of the company’s AUD 26 million owing to InfraBuild group is not likely.”

The accounts of Liberty OneSteel Corporate Services state that a letter of support had been provided by the ultimate parent entity, Liberty Steel Group Holdings Pte Ltd, which is registered in Singapore, to be able to carry on its business and meet liabilities when they fall due.

The accounts show the company had loans receivable from OneSteel Manufacturing Pty Ltd of AUD 18.9 million and there were loans from InfraBuild (Manufacturing) Pty Ltd of AUD 26.4 million, OneSteel Manufacturing Pty Ltd of $10 million and InfraBuild Trading Pty Limited of AUD 6.2 million. But the accounts also reveal there was uncertainty at the end of October 2020 about whether this particular entity would be able to keep going. The accounts state “There remains, however, a material uncertainty as to whether the Company can continue to operate as a going concern into the foreseeable future given the need to secure further shareholder support in order to meet its loan obligations to related parties.”

Infrabuild is the large structural steel business mainly based on the east coast of Australia which runs two steel mini-mills, a large steel distribution business and a national metal recycling network. With annual revenues of AUD 4 billion, it is regarded by analysts and credit rating agencies as one of the better businesses in the GFG Alliance globally. Japanese bank Nomura has bought a small slice of Infrabuild’s debt in the past few weeks as it positions itself for a potential restructuring.

Source - Strategic Research Institute
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Phase 1 of B5 Plus Steel Plant in Ghana Opens

Ghana’s President Mr Akufo-Addo has inaugurated phase one of the B5 Plus Steel Plant, an enterprise under the government’s One District One Factory 1D1F initiative. The state of art steel manufacturing plant in Larkpleku Village in Prampram in Ghan, is estimated to have cost USD 100 million and the expanded B5 Plus has the potential to help bridge the gap between the production and demand for steel locally.

To ensure regular supply of power to the site, the management of B5 Plus has entered into a special arrangement with VRA and GRIDCO.

Headquartered in Ghana, B5 Plus Ltd was founded in 2002 by its CEO Mr Mukesh V Thakwani. B5 Plus Ltd has a conglomerate of business operations spread across different countries in West Africa. B5 Plus Limited manufactures and trades in well finished iron and steel products.

Source - Strategic Research Institute
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Techcom GmbH in Talks to Buy Insolvent COS Târgovi?te in Romania

CAPITAL, citing sources close to the discussions between the two parties, reported that German Techcom GmbH wants to buy the Special Steel Plant COS Târgovi?te in Târgovi?te in Romania, a company currently in insolvency. COS Târgovi?te Special Steel Plant, formerly known as Mechel Târgovi?te, is owned by Nikarom Invest from Bucharest. The Targoviste Special Steel Plant was privatized in 2002, being taken over by the company Conares Trading, registered in Switzerland. The value of the transaction was about USD 35 million. Conares later became part of the Russian group Mechel. In February 2013, Mechel sold all its properties in Romania, including the Targoviste plant, for a symbolic sum of 230 lei to Nikarom Invest in Bucharest and Mechel Targoviste returned to its old name of the Plant of Special Steels Targoviste. The company is currently controlled by the Cypriot offshore Mazur Investments Ltd, with over 86% of the shares. The largest creditor, which has officially paid the industrial asset against the cancellation of budget debts, is the legal vehicle Alphard Financial Corp, registered in the British Virgin Islands. The special administrator of the plant is the Russian Oleg Shvedakov.

Since its inception in 1978, the Târgovi?te Special Steel Plant has been equipped with modern technology for the production of special alloy and high-alloy steels necessary for the development of the national, civil and defense industry. Within the plant, the Block and Bar Forging section was also created, which was equipped, through a capital infusion of over USD 90 million at the quotation of the '80s, with state of the art radial forging machines.

Techcom GmbH was founded in the 1990s and specializes in the technological modernization of facilities in the metallurgical industry, active mainly in the former Soviet Union. Ased in Munich, it is controlled and run by German businessman Mr Edgar Schumacher. Outside of Germany, Techcom currently has offices in Russia, Ukraine and Belarus, as well as partnerships with leading companies in South Korea, India, China and the United States. According to the latest available data, the company had sales of over USD 23 million in 2018.

In 2012-2013, Techcom GmbH took over the Croatian metallurgical producer Adria Steel from Split and undertook investments of over 8 million euros in its development. However, the company went bankrupt by the end of 2015, among other things because it would have lost the main export market, that of Algeria.

Source - Strategic Research Institute
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NLMK Reports 4% YoY Increase in Steel Output in Q1 of 2021

Russian steel maker NLMK Group increased steel output by 12% QoQ % 4% YoY to 4.4 million tonnes in Q1 of 2021 with a post-overhaul increase in NLMK equipment productivity, as well as with the completion of planned maintenance at the Russia Long Products segment. However, consolidated sales declined by 7% QoQ & 13% YoY to 3.9 million tonnes driven by a decrease in commercial pig iron sales amid repairs at NLMK Lipetsk BF operations coupled with an increase in intragroup slab sales.

External sales decreased by 7% QoQ & 13% YoY to 3.9 million tonnes with the decrease in commercial pig iron sales against the backdrop of completed overhauls at one of NLMK Lipetsk blast furnaces, and due to recovering intragroup slab deliveries to NLMK USA to meet local demand for finished rolled products in stocks at the end of Q1. Additionally, stocks have piled up at the end of the quarter at the Black Sea ports due to unfavourable weather conditions; corresponding steel volumes will be sold in Q2 2021.

Sales on ‘home’ markets increased by 4% QoQ but decreased by 10% YoY to 2.7 million tonnes. Sales on export markets decreased to 1.2 million tonnes down 21% QoQ & 12% YoY with a decline in pig iron sales and an increase in intragroup slab deliveries.

Source - Strategic Research Institute
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GMS Market Commentary on Ship Breaking in Week 14

World's leading cash buyer of ships for recycling GMS said that “The nationwide lockdown in Bangladesh has been extended until the evening of April 13th as Covid-19 cases continue to worryingly escalate in the country, whilst Bhavnagar on the other side has also imposed a curfew of its own, following the lockdown imposed in the state of Maharashtra last week, possibly affecting the international departures of incoming crew. Getting vaccines administered to the bulk of the population across the sub continent could not come quickly enough as ICU units are starting to fill up once again as cases continue to rise exponentially. Parts of Europe are similarly facing a grim predicament of their own, just as the UK and the US start to open up parts of the economy again, following successful vaccine rollouts in these respective nations. Notwithstanding, recycling markets remain well-positioned, even if ship deliveries and beachings could be delayed due to the recently imposed lockdowns in Bangladesh and India.”

GMS said “There remains a paucity of units for sale and demand is starting to ramp up once again, especially in Pakistan, which has lost a majority of the larger LDT units that have been committed for recycling so far this year, to their Chattogram competitors.”

GMS added “If the lockdowns persist for several more weeks, this will lead to steel stockpiling on yards as End Buyers are unable to shift their product and this may in turn lead to a downturn in prices. For the time being however, levels and demand continue to hold at these impressive numbers in the mid-to-high USD 400s per LDT.”https://euroshore.com/sites/euroshore.com/files/styles/portfolio_900xauto/public/ship-dismantling-1.png?itok=bNnPVyKY

Source - Strategic Research Institute
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US Steel Capacity Utilization Dips in Week 14

American Iron & Steel Institute announced that in the week ending on April 10, 2021, domestic raw steel production was 1,761,000 net tons while the capability utilization rate was 77.6%. Production was 1,240,000 net tons in the week ending April 10, 2020 while the capability utilization then was 55.4. The current week production represents a 42.0% increase from the same period in the previous year. Production for the week ending April 10, 2021 is down 0.3% from the previous week ending April 3, 2021 when production was 1,766,000 net tons and the rate of capability utilization was 77.9%.

Adjusted year-to-date production through April 10, 2021 was 24,933,000 net tons, at a capability utilization rate of 77.0%. That is down from the 25,425,000 net tons during the same period last year, when the capability utilization rate was 73.7%.

Broken down by districts, here’s production for the week ending April 10, 2021 in thousands of net tons: North East: 154; Great Lakes: 623; Midwest: 175; Southern: 740 and Western: 69 for a total of 1761.

Source - Strategic Research Institute
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Butt Welding Machine for Galvanizing Lineof ArcelorMittal Temirtau

New equipment of the butt-welding machine of the Japanese company Toshiba Mitsubishi-Electric Industrial Systems Corporation was delivered to the hot-dip galvanizing and aluminizing shop of ArcelorMittal Temirtau. The existing butt-welding machine "Verson" is designed for welding profiles in the range of 0.5-1.5 mm. To improve the operation of the equipment and the quality of the seams at the ANGA unit, it is planned to completely replace the butt-welding machine. Thanks to the new equipment, profiles will be welded with a thickness of 0.4 to 2 millimetres. Installation and assembly are scheduled for September this year. The duration of work on the replacement of the CCM is more than 30 days, the work is included in the schedule for the overhaul of the ANGA line.

The new butt-welding machine was manufactured by a specialized division of Toshiba Mitsubishi-Electric Industrial Systems Corporation, which is one of the world's best manufacturers of equipment of this class.

Source - Strategic Research Institute
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Vietnam's Steel Exports Surge in Q1 of 2021

Vietnam Investment Review reported that Vietnam’s exports of iron and steel reached over USD 1.8 billion in the first quarter of 2021, up sharply by 65.2 % YoY. Of these, the exports of crude steel and iron, as well as rolled steel increased by 14.4% and 54% while that of steel angles decreased by 1.6%. Taking advantage of the promising opportunity, leading steel-producers like Hoa Phat Group and Hoa Sen Group have begun exporting large batches to potential markets in Europe and the Americas over the past three months.

Particularly, Hoa Phat Group, the sole enterprise in Vietnam to produce prestressed steel cable, delivered a lot of more than 2,000 tonnes of this speciality steel to partners in the United States in March, pursuant to contracts signed previously. Previously, Hoa Phat shipped more than 12,000 tonnes of mainly cold galvanised steel products to the Americas in February 2021.

Source - Strategic Research Institute
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OMK Chusovoy Plant Produces 100 Millionth Spring for Autos

On April 2, 2021, at the production site of the Chusovoy plant of the United Metallurgical Company in Perm Territory, the 100 millionth spring was produced since the start of spring production here in 1973. The jubilee spring was made for the flagship of the production of the Kama Automobile Plant, the newest model of the K5 generation, the KAMAZ main tractor.

Chusovoy plant OMK is a leader in the production of vehicle springs in Russia and the CIS, constantly improving the methods and technology of springs production. In 2020, a technical re-equipment program was launched here. The production of the enterprise is equipped with modern equipment and automated, the best practices of the automotive industry are used. The plant is the only one among domestic manufacturers that produces springs from steel strip of its own production, controlling the quality at every stage of the technological process, and uses the method of shot blasting of the spring plate in a prestressed state to significantly increase the service life of the product. To protect against corrosion, a painting method using electrocathodic deposition is used, which is included in the requirements of leading car manufacturers.

Source - Strategic Research Institute
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MMK's Environmental Investments Exceed 7 Billion Rubles in 2020

The costs of the Magnitogorsk Metallurgical Plant for environmental activities amounted to more than 7 billion rubles in 2020, of which more than 4 billion rubles were investments in the construction of new and reconstruction of existing environmental protection facilities. All investments were made in accordance with MMK's Environmental Program, which covers all production processes. MMK's environmental investments are proving their effectiveness. Thus, the implementation of the environmental program in 2020 made it possible to reduce gross atmospheric emissions by 19.6 thousand tons compared to 2019 (to 177.4 thousand tons), and specific emissions by 4% (to 17.2 kg / ton metal products). In addition, 1.91 million tons of production wastes were used in the sinter batch as secondary material resources, and 10.055 million tons of dump slags were processed at specialized installations.

In accordance with the Environmental Program of PJSC MMK, 78 technical measures were taken in 2020 to reduce and prevent negative impact on the environment. Eight more events are underway. Among the most significant environmental protection measures of the year is the construction of an aspiration system for the foundry yard of blast furnace No. 2. Thanks to the constructed aspiration unit with a capacity of 850 thousand cubic meters per hour, dust emissions have decreased by 250 t / year, and the working conditions of the furnaces have significantly improved.

Another important area of ??environmental investments in the past year was the installation of dust suppression systems in open and closed warehouses of iron ore raw materials in the sinter batch preparation workshop, as well as dust suppression systems at the car dumper and crushing department of the coal preparation workshop.

In addition, it is necessary to note the reconstruction of the drainage system of a dolomite quarry in sludge storage No. 2. Within the framework of an environmental project for pumping out groundwater from the bottom of a dolomite quarry, a new extended drainage system and pumping equipment with a capacity of 500 cubic meters / hour were put into operation pumps water to sludge storage no. 2, which is a technogenic deposit. Now the water from the bottom of the dolomite quarry is used by the mining and processing industry. Thus, the dolomite quarry was completely freed from possible flooding, and most importantly, it was possible to solve the long-term environmental problem and stop the discharge of water from the bottom of the dolomite quarry into local rivers.

Source - Strategic Research Institute
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Beursblik: Jefferies verhoogt koersdoel ArcelorMittal

Door ABM Financial News op 14 april 2021 09:19
Beursblik: Jefferies verhoogt koersdoel ArcelorMittal
Beeld: ArcelorMittal
(ABM FN-Dow Jones) Jefferies heeft het koersdoel voor het aandeel ArcelorMittal verhoogd van 28,00 naar 34,00 euro met handhaving van het koopadvies. Dit bleek woensdag uit een sectorrapport van de zakenbank.

Jefferies refereerde in zijn rapport aan een sterke vraag en lage voorraden, naast een beperkte concurrentie aan de importzijde, wat de Europese staalprijzen ondersteunt.

Volgens de bank zijn er geen signalen dat de krapte in de markt op de korte termijn vermindert.

De analisten rekenen voor het eerste kwartaal op een EBITDA van 2,7 miljard dollar voor ArcelorMittal. Dat is 58 procent meer dan een kwartaal eerder, maar in lijn met de consensusverwachtingen.

Ook verwacht de bank dat ArcelorMittal zich positief zal uitlaten over de verdere prijsontwikkeling en de vraag. Voor het tweede kwartaal mikken de analisten op een EBITDA van 3,5 miljard dollar. Voor het vierde kwartaal is er nog de nodige onzekerheid.

Jefferies houdt een voorkeur voor plaatstaal boven roestvrij staal.

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RIVM: luchtkwaliteit IJmond leidt tot gezondheidsklachten
Van onze redacteur 12:45

Tata Steel in de IJmond Foto: Sander Koning/ANP

In de IJmond in Noord-Holland is regelmatig sprake van een slechte luchtkwaliteit als gevolg van hoge concentraties fijnstof. Bewoners in die regio hebben meer acute gezondheidsklachten dan in andere delen van Nederland. Dat blijkt woensdag uit de tussentijdse resultaten van een gezondheidsonderzoek, uitgevoerd door het RIVM. In het gebied is zware industrie van Tata Steel gevestigd.

Het onderzoek richt zich voornamelijk op acute gezondheidsklachten. Klachten die worden gemeld bij de huisarts zijn onder andere misselijkheid, hoesten, benauwdheid, prikkende ogen en hoofdpijn. Ook komen diabetes, pijn op de borst en longkanker vaker voor, concluderen de onderzoekers. Die conclusie komt overeen met een GGD-onderzoek uit 2020, waarin stond dat in de gemeente Beverwijk longkanker ongeveer 25% vaker voorkomt ten opzichte van de rest van Nederland.

Hoewel het RIVM nog geen oorzaak voor de gezondheidsklachten aanwijst — daarvoor wil het eerst vervolgonderzoek doen — bevestigt het rapport de zorgen van omwonenden. Bewoners van de omliggende gemeenten ervaren regelmatig stank- en geluidsoverlast en maken zich zorgen over hun gezondheid. Advocaat Bénédicte Ficq wil namens meer dan 750 mensen een strafzaak starten tegen Tata Steel, vanwege het moedwillig schaden van de gezondheid van mens en dier.

Fijnstof
Het onderzoek wordt door het RIVM in samenwerking met de GGD en onderzoeksinstituut Nivel uitgevoerd, in opdracht van de provincie Noord-Holland en de gemeenten Velsen, Beverwijk en Heemskerk. Het totale gezondheidsonderzoek omvat drie onderwerpen en moet eind 2021 klaar zijn.

Dit tussentijdse rapport stelt dat in de regio, waar naar zware industrie ook veel verkeer en scheepvaart plaatsvindt, vaker hogere concentraties fijnstof voorkomen dan in delen van Nederland zonder zware industrie. Als bron heeft Tata Steel een belangrijk aandeel in de lokale emissies.

Studie onder omwonenden
Daarbij is nu voor het eerst inzichtelijk gemaakt wat de concentraties fijnstof per dag en per uur zijn, in plaats van het gemiddelde per jaar. Zo is het duidelijker wanneer en hoe vaak de concentraties fijnstof hoger zijn, en de luchtkwaliteit onvoldoende is. Een studie onder omwonenden, waarin zij bijvoorbeeld een dagboek bijhouden, zou meer inzicht kunnen geven of er een verband is tussen de luchtkwaliteit en de acute gezondheidsklachten.

Tata Steel zegt kennis te hebben genomen van de publicatie van het rapport. In een reactie zegt het staalbedrijf 'hard te werken aan maatregelen die de impact op de omgeving verder verminderen'. Het bedrijf verwijst naar de eerder aangekondigde plannen van €300 mln om de overlast aan te pakken. Het staalbedrijf zegt 'binnenkort' de concretisering en planning van die projecten bekend te maken.

Originele link van het artikel: fd.nl/economie-politiek/1380343/rivm-...
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ArcelorMittal sluit investeringsovereenkomst met Italiaans staatsbedrijf

(ABM FN-Dow Jones) ArcelorMittal heeft met het Italiaanse staatsbedrijf Invitalia een akkoord bereikt over een investering in AM InvestCo. Dit meldde de staalreus woensdag.

Invitalia investeert 400 miljoen euro in AM InvestCo Italy, een dochteronderneming van ArcelorMittal.

Door deze investering krijgt Invitalia een belang en stemrecht van 38 procent in het bedrijf.

AM InvestCo Italy zal worden omgedoopt tot Acciaierie d'Italia Holding, terwijl de operationele dochteronderneming ArcelorMittal Italia de naam Acciaierie d’Italia krijgt.

De overeenkomst voorziet ook in een tweede investering van maximaal 680 miljoen euro, naar verwachting tegen mei 2022, waarna het belang van Invitalia in Acciaierie d'Italia zal stijgen tot 60 procent.

ArcelorMittal zal dan 70 miljoen euro investeren om een belang van 40 procent te behouden en de gezamenlijke controle over het bedrijf.

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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ArcelorMittal Italia to be Renamed Acciaierie d’Italia

ArcelorMittal announced that it has completed an investment agreement with Italian state-owned company Invitalia forming a public-private partnership between the parties. Invitalia has injected EUR 400 million equity into ArcelorMittal’s subsidiary AM InvestCo Italy, which signed the lease and purchase agreement for the Ilva business providing Invitalia with a 38% shareholding and equal voting rights with joint control over the company. Going forward the joint company AM InvestCo Italy is being re-named Acciaierie d’Italia Holding, and its main operating subsidiary ArcelorMittal Italia will be renamed Acciaierie d’Italia.

The Investment Agreement stipulates a second equity injection by Invitalia, of up to EUR 680 million, to fund the completion of the purchase of Ilva’s business by Acciaierie d’Italia, which is expected by May 2022 subject to certain conditions precedent.

At this point, Invitalia’s shareholding in Acciaierie d’Italia would increase to 60%, with ArcelorMittal to invest up to EUR70 million to retain a 40% shareholding and joint control over the company.

Going forward, Acciaierie d’Italia Holding will operate independently, and as such will have its own funding plans without reliance on ArcelorMittal. As a result, ArcelorMittal will deconsolidate the assets and liabilities (including the remaining lease and purchase liability) of Acciaierie d’Italia Holding (formerly AM InvestCo Italy) from its consolidated statement of financial position and will account its interest in the company under the equity method.

Source - Strategic Research Institute
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JSW Steel Italy Acquires Remaining Stake in GSI Lucchini

JSW Steel announced that its Italian subsidiary JSW Steel Italy Srl has acquired the remaining 30.73% stake in Italy-based forged steel producer GSI Lucchini SpA from South Africa based Industrial Development Cooperation. The acquisition totalled EUR 1 million. The balance share capital of GSI is already held by JSW Steel Italy Srl. JSW Steel Italy now holds all shares in GSI. The agreement to acquire GSI's remaining stake was signed in December last year.

JSW Steel said "The port-based facility also gives GSI the flexibility and access to import raw material's bars & blooms and billets to supplement supplies as when required.”

GSI LUCCHINI SpA based in Italy is a European leader in the manufacturing of Steel Forged Grinding Media mainly for the mining industry. The high quality of the grinding balls produced in Piombino Plant in the port city Piombino in Tuscany region meets the most demanding markets such as mining industry and various mill grinding sectors. The high Carbon alloyed steel bars are forged into balls and processed to give a uniform metallurgical structure. The high hardness structure combines excellent abrasion resistance with the toughness needed to resist breakage during the milling operation. Chemistry and heat treatment can be customized to best fit the application needs of the end users.

Source - Strategic Research Institute
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Hoa Phat Becomes Largest Steel Producer in Vietnam

Vietnamese steel maker Hoa Phat announced that Hoa Phat has become the largest steel producer in Vietnam after it produced 2 million tonnes of crude steel, up 60% over the same period, in the first quarter of 2021, and Formosa Ha Tinh ranked second with an output of 1.62 million tonnes, 20% lower than the output of Hoa Phat. Hoa Phat reached 700,000 tonnes of crude steel in March 2021, up 56% over the same period and is the highest level ever. Market share of construction steel, steel pipes Hoa Phat holds the No. 1

Hoa Phat Group's yearly steel capacity is over 8 million tonnes per year, including over 5 million tonnes of construction steel and 3 million tonnes of HRC per year. The complex in Dung Quat is the largest with a production output of 5.2 million tonnes per year, followed by Hoa Phat Hai Duong Iron and Steel Complex with 2.5 million tonnes per year. The steel mill complex in Hung Yen has a capacity of 400,000 tonnes per year. It is expected that when completing Hoa Phat Dung Quat 2 project, Hoa Phat's crude steel output will reach 14 million tonnes per year.

Source - Strategic Research Institute
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Svegliati Amore Mio TV Series on ArcelorMittal Toranto Pollution

ANSA reported that ArcelorMittal steel group has sacked a worker at its controversial and polluting ex-ILVA plant in Taranto because he urged people to watch a TV mini-series on pollution at a steel plant. The sacked worker, Riccardo Cristello, appears likely to be rehired after talks between the company and the labour ministry. The three-part serial, Svegliati amore mio (Wake Up My Love), directed by Simona Izzo and Ricky Tognazzi, was broadcast on the flagship Berlusconi channel Canale 5 from 24 March to 7 April. It is based on the true story of a mother who starts a campaign against a polluting steel plant after her daughter comes down with leukaemia. Pollution has long been a problem at the former ILVA works at Taranto, Europe's largest, and has been linked to higher than normal cancer rates in the Puglia city, especially among children.

ArcelorMittal Italia on 3 April said that it recognizes and respects the artistic and social relevance of the film and television industry, as well as any other form of artistic and cultural expression. It said “With regard to the news circulated in the press and online in these hours, about the disciplinary action and precautionary suspension of two employees of the Taranto steel plant, it is specified that these measures have been adopted not for having written comments on the fiction movie Svegliati amore mio (Wake up my love), but for having denigrated the company itself and its management, also through statements of a harmful and threatening nature. The company deplores the distribution of false and unverified news which in turn can damage its image but above all cause alarm and confusion among workers and the population.

Source - Strategic Research Institute
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