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ArcelorMittal plant begins production in Jubail Join our daily free Newsletter

MENAFN - Arab News - 18/01/2014

MENAFN - Arab News) ArcelorMittal iron and Steel Company in the Kingdom has started commercial production at its plant in Jubail 2 Industrial Zone.

The mill in Jubail Industrial City will have a capacity of 600,000 tons a year with an investment in excess of a billion dollars. About two-thirds of its capacity will be used for tubular products and the remainder for pipelines
Company CEO Timothy Erway said: "The plant's commercial production has successfully begun; we thank the Royal Commission and all the partners."
He explained that the objectives of the company are to contribute in localizing the industrial sector in Saudi Arabia, transfer the technology and provide job opportunities to Saudis.

The project aims to ensure the needs of Saudi Arabia and the Gulf countries with oil and gas pipes of various types and sizes.
He said: "The company plans for large investments in Saudi Arabia due to the extensive facilities provided by the Royal Commission in Jubail." He mentioned that the plant is the first of its kind in the Gulf region and the first plant to start production in Jubail 2.

"The project represents a connection with the mother company and its subsidiaries around the world. It decided to divert its investments toward the Saudi, Gulf and the Middle East markets to produce iron and steel and its derivatives to meet the growing demand in the region," he said.

"The production targets new projects, especially in Jubail and meet the needs of the Kingdom and Gulf countries of oil and gas pipes in multiple types and sizes. The facility will employ more than 600 workers when fully operational."
ArcelorMittal Jubail plant will be the largest seamless tubular products in the Middle East.

ArcelorMittal Jubail is a joint venture between the world's largest steel company, ArcelorMittal, and Al-Tanmiah Company for Industrial and Commercial Investment.
The majority shareholder in Al-Tanmiah Company is Bin Jarallah Group based in Riyadh. Total project investment is in excess of SR3 billion.
The Royal Commission of Jubail and Yanbu has started the modern industrial city located west of the local industrial city. The location was chosen as it is near the feedstock resources and the facilities of the infrastructure in industrial Jubail.

The construction work for Jubail Industrial City 2 is in full swing. It is expected to attract over SR200 billion in investment mainly from international sources.
The development of the second Industrial City is done in four phases, which are to be undertaken during the next 22 years.
The Phase I was completed in 2007, Phase II was from 2008 to 2012, Phase III from 2013 to 2018, and Phase IV from 2019 to 2022.

As with the original Jubail development, the Royal Commission for Jubail and Yanbu is undertaking the project under the supervision of Bechtel, which has played a key role in the development of Jubail during the last 30 years.
The total four phases of development for Jubail Industrial City 2 is expected to cost about SR14 billion - Phase I SR4.7 to SR 5 billion, Phase II SR2.5 to SR3 billion, Phase III SR1.8 to SR2 billion and Phase IV SR2.5 to SR3 billion.

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AISI - Consumers view advanced high strength steel

At the 2014 North American International Auto Show the steel industry unveiled conclusive findings from a recent market research study regarding the role of steel in automobiles, revealing an overwhelmingly positive perception of steel across the consumer market.

The 2013 US Truck & SUV Market Study of more than 3,000 US based truck and SUV owners was commissioned by the Steel Market Development Institute, a business unit of the American Iron and Steel Institute and conducted by MindClick Global, a leader in supply chain research and sustainability.

The study shows that building on the extensive steel grade portfolio leads to definitive results in automotive safety, fuel efficiency and decreased carbon footprint. It also highlights the steel industry's leadership in performance, recycling and offering economical solutions for the auto industry to help meet Corporate Average Fuel Economy regulations.

Mr Lawrence W Kavanagh president of SMDI said that "Through innovation and continuous improvement, we have developed a wide range of advanced high strength steel or AHSS grades enabling carmakers to make more efficient vehicles and reduce greenhouse gas emissions. Our AHSS grades protect the environment in the same way they protect the driver. AHSS feature unique metallurgical properties and processing methods that enable the automotive industry to meet current and future fuel economy and safety requirements, without increasing costs."

Consumers Applaud High Safety Standards
According to consumer feedback, when directly compared to other automotive materials, steel is more strongly associated with strength, safety and protection of the family, an important and personal element of a consumer's driving experience. The strength of the material used in the frame and body of the vehicle holds as much significance over purchasing decisions as brand and cost. This consumer trust and confidence in steel as a safe, green and fuel-efficient material also helps to elevate overall automotive brand opinion and propensity to buy.

Mr JoAnna Abrams CEO of MindClick Global said that "Based on the brand analysis, awareness of the use of AHSS directly correlated to an overwhelming amount of consumers, 90% citing a strong preference for and likelihood to purchase brands that make use of AHSS. Approximately half of participants surveyed agreed that replacing steel with other materials would undoubtedly lead them to question how the vehicle handles normal wear and tear and raises concerns about the potential cost of vehicle insurance and repair."

Source - Strategic Research Institute

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The five-day meeting would include close to 250 sessions, where top policymakers from across the world would discuss various issues with business leaders from hundreds of global companies, including PepsiCo, ArcelorMittal, Google, Yahoo, Total, Bank of America, Microsoft, BP, Citi, Deutsche Bank, HSBC, Volkswagen, UBS, Unilever and Standard Chartered.

www.hindustantimes.com/india-news/125...
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ThyssenKrupp combines capabilities in plant technology

BS reported that as part of its strategic way forward, ThyssenKrupp is strengthening its plant technology business as a major growth area for the Group. To better exploit global market opportunities the previously separate plant technology companies of the Group are being combined under the roof of ThyssenKrupp Industrial Solutions.

The merger of the German companies of ThyssenKrupp Uhde and ThyssenKrupp Resource Technologies (created from ThyssenKrupp Polysius and ThyssenKrupp Fördertechnik) with ThyssenKrupp Industrial Solutions is now an important milestone in the integration process.

Dr Heinrich Hiesinger CEO of ThyssenKrupp said that “The integration and regionalization of our plant technology business is an important element of our transition into a diversified industrial group. This growth area offers great potential, which we can exploit optimally with ThyssenKrupp Industrial Solutions as a global, integrated engineering and construction company. Our aim is to grow faster than the market.”

Dr Hans Christoph Atzpodien CEO of ThyssenKrupp Industrial Solutions said that “Combining the strengths of our three successful long-standing plant technology companies and acting as one company on the global stage in the future will increase our impact particularly in the growth regions and enable us to carry out projects worldwide on a whole new scale. We plan to increase ThyssenKrupp Industrial Solutions’ sales by on average more than five percent per year in the coming years.”

Source – Strategic Research Institute
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Tawana Resources discovers new high grade iron at Mofe Creek in Liberia

Tawana Resources is set to trade higher after a new iron ore discovery at the Gofolo prospect within its Mofe Creek Iron project in Liberia, West Africa.

Potential direct shipping ore intersections, over a 1 kilometre strike, include 4 meters at 40.2% iron from surface and 62 meters at 38.8% iron from surface including 18 meters at 49.5% iron from 16 meters.

With only 8 kilometers of a 65 kilometer interpreted prospective strike drilled to date, the projects upside potential is substantial.

Resource drilling has also been completed at the Zaway prospect, the third potential Mofe Creek Project future mine, with assays being received and under review.

Source - Proactive Investors
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TATA Steel saves more than GBP 500000 fume extraction with ABB drives

A fume extraction system at a steel works is saving GBP 570,000 a year on energy costs thanks to the installation of variable speed drives and high efficiency motors by ABB. The contract involved the supply of services and solutions from across the ABB group, as well as co ordination with a number of other subcontractors.

TATA Steel’s Aldwarke melting shop, in Rotherham, South Yorkshire, produces 750,000 tonnes of steel a year. The main extraction system of the machine shop was identified by the company as being an area where significant savings could be made. This consists of five main extraction fans, which draw the fumes from the shop via a system of dampers and vanes. These fumes are then sent to the bag filter plant for removal of dust particles.

The common duct pressure was originally controlled to maintain a suction pressure of 21 mBar, using input vanes to the main extraction fans operating at a fixed speed. The fans were driven by direct-on-line, fixed speed, 3.3 kV, 1.2 MW, 740 rpm, water-cooled motors. With no capacity to match speed to demand, these 1.2 MW motors represented a heavy drain on the plant’s electrical supply.

Mr Andy Burgar Department Engineer for TATA Steel said that “TATA Steel is committed to sustainable solutions to cut energy use. The size of these fans meant they were significant energy users, costing us around GBP 1.5 million a year in running costs. Our internal calculation showed that we could conceivably save hundreds of thousands of pounds a year on energy for the application, cutting CO2 production by 6,000 tonnes.”

Mr Ken Hughes project manager for ABB said that “The major challenge was keeping the fans working throughout the project. The extraction system works round the clock for six days a week and needs at least four of the five fans to be working at all times. This required very close liaison with the customer so we could fit in our installation and commissioning work with the shutdowns in the plant. Flexible planning of our activities was essential.”

Source – Strategic Research Institute
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Aluminium market facing 1.1 million tons deficit in 2014

According to Barclay, aluminum market will face a supply deficit of 1.1 million tons in 2014, when it was 726,000 tons in 2013.

Barclays said that the Chinese market is expected to report surplus of 250,000 tons for aluminium. The LME aluminum cash average price is predicted to be at USD 1,850 per tonne during 2014. Global consumption increased by 7.9% 50.357 million ton in 2013 from a year ago.

Source - www.yieh.com
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Hungary still wants to buy steel works Dunaferr - Energy official

The Hungarian government has not given up its plan to buy steel works ISD Dunaferr although the company’s management had made it very clear Dunaferr is not for sale.

Mr Lajos Dorkota head of the Hungarian Energy and Public Utility Regulatory Authority said that the cabinet has not given up its plan to buy steel works ISD Dunaferr. Negotiations will continue between the owner and the Hungarian state adding that the chief of Russia’s Vneshekonombank, Dunaferr’s main owner, will arrive in Budapest in early February to discuss the potential acquisition.

Mr Dorkota said that the company’s management made it clear already that Dunaferr is not for sale but the owner may take a different approach.

Mr Evgeny Tankhilevich CEO of ISD Dunaferr said that “The owners of Hungarian steel works ISD Dunaferr would like to receive assistance from the state, but they have no intention to sell the company.”

Source – Portfolio.hu
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Hyundai Steel to supply steel plates to Bosphorus Bridge

Hyundai Steel won an order to supply all 43,000 tonnes of thick steel plates to be used for Istanbul's third bridge on the Bosphorus. Under construction by Hyundai Engineering & Construction and SK Engineering & Construction, the Yavuz Sultan Selim Bridge, a hybrid of suspension and cable stayed bridge, will be culmination of latest construction technologies.

Of the 43,000 tonnes steel plates, about 30,000 tonnes will be a high performance product (S460ML) capable of withstanding under extreme temperature conditions such as 50 degrees below zero. This is the first time a Korean steel maker to win a large-scale order of this product.

Earlier, Hyundai Steel had succeeded in winning steel products for the International Financial Center in Busan and the Federation of Korean Industries headquarters building.

A company official said that "Based on the latest supply contract from Turkey, we will work to get orders for infrastructure projects under way in Qatar for the 2022 World Cup."

Source – Koreaittimes.com
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ThyssenKrupp vows to resume dividend payments

AFP reported that German heavy industry giant ThyssenKrupp promised its shareholders to resume paying dividends but did not gave any indication about when it might do so.

Mr Heinrich Hiesinger CEO of ThyssenKrupp said that "We are on the right path and have achieved measurable successes. We ended the past fiscal year with a loss and are unable to pay a dividend to you, our shareholders. That must change, and it will change. That is what the executive board is committed to."

ThyssenKrupp, which makes steel, elevators, industrial plant technology, submarines and car parts, is in the middle of a vast restructuring. It runs its business year from October to September and both sales and new orders were down in the 12 months to September 30th 2013. It also booked a net loss of EUR 1.5 billion.


Mr Hiesinger said that “In the current year, the group is targeting sales growth of a mid single digit percentage rate and significant improvement in annual earnings towards break even. We must and we will make ThyssenKrupp into a successful company again, generating regular profits that will improve our stock price and enable us to pay you, our shareholders, an attractive dividend again as soon as possible."

Source – AFP
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Japan steel export in Nov 3393000 tonnes up 2.5pct from Oct

According to this, steel export in November was 3,393,000 tonnes (abbreviated as t/t). Export amount in the dollar was 3 billion 321 million and that in the yen was 327.0 billion. Compared with the same month last year, its quantity decreased by 4.3% for 3 months in a row and its amount in the dollar decreased by 5.9% for 18 months in a row while that in the yen increased by 16.1% for 6 months in a row.

Compared with the previous month, its quantity increased by 2.5% for the first time in 3 months and its amount decreased by 2.8% in the dollar and did by 2.6% in the yen both for the first time in 2 months.

Export quantity of ordinary steel products was 2,149 t/t, down 6.5% from the same month last year for the first time in 2 months and down 1.2% from the previous month for 3 months in a row.

By item of export with percentage compared with the same month last year, hot rolled (HR) steel coils (824 t/t, down 13.6%) decreased for the first time in 21 months, galvanized steel sheets/coils (329 t/t, down 18.3%) did for 7 months in a row, steel plates (238 t/t, down 3.6%) did for 10 months in a row, cold-rolled (CR) steel coils (229 t/t, down 1.1%) did for 6 months in a row, welded/forged steel pipes/tubes (75 t/t, down 16.4%) did for the first time in 4 months and steel bars (23 t/t, down 27.8%) did for 3 months in a row.

While, electrical steel sheets/coils (74 t/t, up 20.1%) increased for 2 months in a row, steel shapes and sections (74 t/t, up 27.8%) did for 3 months in a row, steel wire rods (71 t/t, up 124.1%) did for 12 months in a row, and seamless steel pipes/tubes (53 t/t, up 5.3%) did for the first time in 2 months.

By item of export with percentage compared with the previous month, shapes and sections (down 12.6%), galvanized sheets/coils (down 8.1%), HR coils (down 5.0%), CR coils (down 2.2%), plates (down 0.4%) and so on decreased respectively. While, wire rods (up 37.5%), seamless pipes/tubes (up 24.9%), bars (up 24.5%), electrical sheets/coils (up 10.2%), welded/forged pipes/tubes (up 5.0%) and so on increased respectively.

Source - The TEX Report
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L.s.,

LUXEMBURG (AFN) - ArcelorMittal gaat voor 650 miljoen dollar (480 miljoen euro) aan obligaties vervroegd aflossen. Dat maakte het staalconcern dinsdag bekend.

De obligaties zullen op 20 februari worden afgelost

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L.s.,
LUXEMBURG (AFN) - ArcelorMittal gaat voor 650 miljoen dollar (480 miljoen euro) aan obligaties vervroegd aflossen. Dat maakte het staalconcern dinsdag bekend.

De obligaties zullen op 20 februari worden afgelost.

ArcelorMittal meldde verder dat de verplichte conversiedatum voor 1 miljard dollar aan converteerbare obligaties wordt verlengd tot 29 januari 2016.

Tevens zijn veranderingen aangebracht in twee kredietfaciliteiten van ArcelorMittal. Daarbij werd bij een faciliteit die loopt tot 2016 de omvang verkleind tot 3,6 miljard dollar van 6 miljard dollar. Een andere kredietfaciliteit werd verkleind tot 2,4 miljard dollar van 4 miljard dollar. Hiervan werd de looptijd verlengd tot 6 november 2018.

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Goldman Sachs favoriete grondstoffen voor 2014

DINSDAG 21 JANUARI 2014, 10:42 uur | 1918 keer gelezen

Aan het begin van het nieuwe jaar heeft de Amerikaanse bank Goldman Sachs opnieuw gekeken naar de verwachtingen voor grondstoffen. Voor de komende 12 maanden ziet de bank nikkel, zink en palladium als grondstoffen met de meeste opwaartse potentie.


Zo blijkt uit een grondstoffenrapport van de bank.

‘Wat betreft nikkel verwachten we dat de marginale kosten van het aanbod fors zal stijgen als gevolg van het recente verbod op de uitvoer uit Indonesië van onbewerkt erts.

Het gevolg is een potentieel tekort aan nikkelerts eind 2014 en een significant tekort in 2015’, zo schrijven de analisten van Goldman Sachs. De bank verwacht een prijsstijging van 13 procent voor de grondstof in 2014.

Ook de prijs van zink kan volgens de bank komend jaar stijgen en wel met 3 procent. Maar de grootste stijger van alle grondstoffen zal volgens Goldman Sachs palladium zijn met een voorziene stijging van 14 procent.

Sterkste dalers

De grondstoffen die het volgens Goldman Sachs het slechtst zullen doen zijn ijzererts en koper. Hen staan respectievelijke minnen van 21 en 15 procent te wachten volgens de bank.

‘We verwachten dat 2014 een overgangsjaar wordt naar een structureel overschot aan ijzererts. Ook wat betreft koper lijken 2014 en 2015 jaren van marktoverschot te worden dankzij een decennium van flinke kapitaalinvesteringen in de kopermijnbouw waardoor het aanbod sterk groeit.'

Meer tips zijn te vinden op onze themapagina Beurstips & Handelskansen.

Door Barbara van Cooten

www.belegger.nl/nieuws/2645261/goldma...
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Undersea Tunnel to connect Gwangyang Steelworks and Yeosu Industrial Complex

Gwangyang Steelworks and Yeosu Industrial Complex will start reviewing an undersea tunnel project to exchange by product gas.

POSCO participated in an Industrial By product Re resourcing Project MOU on January 7th hosted by the Ministry of Industry, Trade, and Resources along with four petrochemical companies located in the Yeosu Industrial Complex, including Hanwha Chemical, E1, HU-CHEMS and Air Liquide Korea and agreed to carry out a project for an undersea tunnel to exchange by product gas.

At a signing ceremony at Seoul Millenium Hilton, an MOU concerning this By product Gas Utilization Project was agreed to as a follow up to the on site project announced at the President supervised 4th Trade Investment Promotion meeting on December 13th.

By product gases produced at each of the industrial complexes can be exchanged if a 3.8 kilometers undersea tunnel is built connecting Gwangyang Steelworks and the Yeosu Industrial Complex. By product gases like carbon monoxide and hydrogen monoxide are produced at Gwangyang Steelworks, while nitric acid and caustic soda are produced as by products at the Yeosu Industrial Complex. Currently, by product gases can be used as materials for petrochemical companies but transportation is difficult and therefore mostly consumed within Gwangyang Steelworks while companies in the Yeosu Industrial Complex use expensive petroleum based materials. Once by-product gases can be supplied via an undersea tunnel, production costs can be reduced thanks to lower material and logistics costs for an annual economic effect in excess of 120 billion KRW.

Detailed project planning and a feasibility study will be carried out in parallel to establish project organization this year, and after authorizations and approvals are received for environmental effect evaluations and the use of shared water, undersea tunnel construction will begin next year for completion in 2019. The total project budget is 200 billion KRW, to be fully funded by a consortium of companies in both industrial complexes.

Source – Strategic Research Institute

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Japan steel demand in construction industry to remain strong

It is expected that Japan’s steel demand in construction industry will remain strong with the anticipation of a rise of 8.5% in February compared to the same month of last year.

Demand for construction steel is expected to be around 2 million tons in February, as it would give chances to distributors to boost their prices.

Japanese demand has been increasing due to rebuilding activity in the major earthquake damaged area. Besides, the selection of Tokyo as host of the 2020 Olympic Games also provided a spike in steel demand.

Source - www.yieh.com
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Fujian Sansteel had a profit of CNY 256 million in 2013

In face of austere situation of overcapacity, lower steel consumption intensity, low steel price, financial restrain and high operating cost, Fujian based Sansteel Group has realized crude steel production of 8.216 million tonnes, sales revenue of CNY 29.899 billion and profit of CNY 256 million in the whole year of 2013.

In the first 11 months of 2013, there were 70 steelmakers suffering a combined loss of CNY 3.16 billion.

Source - www.steelhome.cn/en
China steel information centre and industry database
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2013 goes out with a Bang

Monthly shipments of steel and aluminum in both the United States and Canada ended 2013 with gains over December of 2012. In the United States, December shipments lifted 2013 annual shipments to levels roughly equal with 2012 for both metals. 2013 remained slightly below 2012 in Canada.

While inventory levels increased from November levels as a result of December’s seasonally low level of shipments, inventories were in a better position across the board than last year at this time.

US Service Center Activity
US service center steel shipments in December 2013 increased by 16.5% from December 2012. Steel product inventories decreased 2.1% from December a year ago.

US service center shipments of aluminum products in December increased by 13.3% from the same month in 2012. Inventories of aluminum products increased 3.3% from December a year ago.

Canadian Service Center Activity;
Canadian service centers shipments of steel products in December 2013 increased by 3.0% from December 2012. Steel product inventories decreased 25.5% from December a year ago. Canadian service center aluminum shipments in December increased 3.5% from the same month in 2012. Inventories of aluminum products decreased 6.2% from December a year ago.

Source – Strategic Research Institute
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