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Worstelende Europese tak blok aan been van Tata Steel

De kwakkelende Europese staalactiviteiten zijn een verliespost voor Tata Steel Limited. Dat blijkt vrijdag uit de kwartaalcijfers van de Indiase staalgigant, die in november al stelde dat het in Europa banen wil schrappen vanwege tegenvallende resultaten.

Voor het gehele staalconcern was het derde kwartaal van 2020 zwak. De resultaten werden sterk beïnvloed door de teruggang in economische groei, handelsspanningen, dalende staalprijzen en een lagere vraag. En door de Europese activiteiten.

In Europa had het bedrijf niet alleen last van de wereldwijde malaise, maar kampte het naar eigen zeggen ook met 'oneerlijk geprijsde import' en een forse daling van de staalprijzen. En dat is terug te zien in de resultaten over het gebroken boekjaar. De omzet voor de Europese tak daalde naar omgerekend zo'n €1,76 mrd (Rs.13.821 crores). Het bedrijfsresultaat (ebitda) kwam in het vorige kwartaal nog uit op een lichte plus maar laat nu een verlies zien van zo'n €122 mln (Rs.956 crores).

Transformatieprogramma
Van de resultaten hangt veel af. Voor Tata Steel zijn de tegenvallende resultaten een argument om besparingsplannen voor de Europese tak door te voeren. De staalfabrikant wil met een 'transformatieprogramma' het bedrijfsresultaat (ebitda) verbeteren tot £750 mln in maart 2021 (omgerekend €875 mln). Het bedrijf wil minder bureaucratie, meer hoogwaardige staalsoorten verkopen en besparen op personeelskosten. Mogelijk verdwijnen in Europa 3000 van de 21.000 banen, waaronder ook bij de voormalige Koninklijke Hoogovens in IJmuiden.

De ingrepen zijn volgens het Europese bestuur nodig om het bedrijf toekomstbestendig te maken. Het medezeggenschapsorgaan van het bedrijf is echter bezorgd dat de plannen niet in het langetermijnbelang zijn van het staalbedrijf en zegt dat er geen strategisch plan ten grondslag aan ligt.

De beoogde verbetering van het bedrijfsresultaat lijkt in de huidige omstandigheden moeilijk haalbaar. Voor de eerste negen maanden van het boekjaar komt het bruto bedrijfsresultaat van Europa uit op een verlies van omgerekend €93 mln (Rs.729 crores).

Dalende omzet
Ceo T.V. Narendran schrijft in het persbericht dat de Europese activiteiten de geconsolideerde prestaties negatief hebben beïnvloed. In India kon het bedrijf de economische teruggang nog opvangen door andere markten te betreden. Het is belangrijk dat de Europese tak zo snel mogelijk de kaspositie verbetert, zegt het bestuur in een telefonische toelichting.

Het hele concern zag dit kwartaal de omzet teruglopen naar €4,4 mrd. In hetzelfde kwartaal een jaar eerder was dit nog €4,9 mrd. Het bruto bedrijfsresultaat (ebitda) daalde harder: van €858 mln (Rs. 6,726 crores) in het derde kwartaal van 2019, naar omgerekend zo'n €467 mln (Rs. 3,659 crores) in 2020.

fd.nl/ondernemen/1333994/worstelende-...
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Het stalen optimisme van ArcelorMittal

Donderdag kwam het grootste staalconcern ter wereld met nieuwe jaarcijfers. Die waren niet best. Het bedrijfsresultaat van ArcelorMittal daalde met ruim 49% en onder aan de streep noteerde het bedrijf een verlies van $2,5 mrd. Een jaar eerder stond hier nog een plus van $5,1 mrd.

Toch oogde ceo Lakshmi Mittal optimistisch. Het jaar 2019 was weliswaar 'zeer moeilijk', maar er zijn tekenen dat de staalmarkt beter wordt. De daling van de vraag stabiliseert zich, zegt Mittal. Vorig jaar hebben zijn klanten ingeteerd op hun staalvoorraden. Daarom verwacht hij dat de vraag dit jaar zal aantrekken.

Beleggers reageerden positief. Aan het einde van de handelsdag stond het aandeel 11% hoger. Toch is dat niet Mittals belangrijkste boodschap aan beleggers. Dat is de sterke kasstroom waarmee het staalbedrijf de analisten wist te imponeren. Die is cruciaal om de bedrijfsschuld te verlagen. In 2016 torste ArcelorMittal nog een schuldenlast van $11 mrd. Daarmee stond de staalreus niet gunstig bekend bij de kredietbeoordelaars.

Eind dat jaar lanceerde ArcelorMittal een uitgebreid plan om kosten te besparen en de schuld te verlagen. De ebitda moet structureel met $3 mrd omhoog en de schuld moest naar $6 mrd. En dat tegen eind 2020. De maximale schuld is overigens in mei 2019 bijgesteld naar $7 mrd door de nieuwe boekhoudregels van IFRS16. Hierdoor moeten bedrijven ook de schulden van leasecontracten als schuld meenemen in hun boeken.

Die doelstelling bleek lastig. In drie jaar tijd verlaagde ArcelorMittal de schuld met een kleine $2 mrd naar $9,3 mrd per eind 2019. In één jaar de schuld met nog eens ruim $2 mrd verlagen wordt nog een flinke klus.

Dat ziet meneer Mittal ook. Om beleggers gerust te stellen heeft het management van ArcelorMittal nogmaals de kosten onder de loep genomen. De top ziet dit jaar voor $1 mrd aan nieuwe besparingen. Dat is al de helft van de gehoopte schuldenreductie.

Maar er is meer. Mittal denkt ook nog $1 mrd aan werkkapitaal vrij te maken. Met een deel hiervan kan hij meer schuld aflossen, samen met nog enkele andere maatregelen. Mittal is daarom 'optimistisch' dat een schuld van $7 mrd eind dit jaar haalbaar is, en dat laat hij niet na om te benadrukken.

Als hij gelijk heeft, dan is dat ook kassa voor de aandeelhouders. De dividenduitkering is gekoppeld aan de kasstroom. Als die laatste sterk is en de schuld is genoeg verlaagd, dan kunnen zij volgend jaar ook een hoger dividend tegemoet zien.
Het wordt tijd dat, na jaren van zuur, eindelijk wat zoets komt. Alleen moet het actieplan dan wel slagen.

Reageren? Mail naar Bartjens@fd.nl.

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Nippon Steel to Close 5 Million Tonne Capacity

Japanese steel giant Nippon Steel Corp announced drastic cost-cutting measures, including closure of an entire steel works, after it forecast its biggest-ever net loss of JPY 440 billion (USD4 billion) for the fiscal year that ends in March. It said “Nippon Steel Corporation Group has been facing unprecedented harsh conditions in which steel demand from the manufacturing industry has decreased and steel prices have stagnated, prompted by the US China trade disputes. At the same time, Chinese steelmakers have increased production for domestic infrastructure demand, which has caused prices of raw materials for steel to remain at a high level. In addition to this immediate situation, we have to expect, in the medium- to long-term, a decline in construction demand, caused by Japan’s declining and aging population, a decline in demand associated with expanded overseas production by our Japanese customers, and intensified competition in the overseas market. In the meantime, Nippon Steel Group’s major steelworks have been operating for over 50 years since construction and are in need of large-scale investment for renewal in order to maintain their current production capacity.”

Strengthening of competitiveness in upstream integrated production
From the perspective of increasing competitiveness in upstream integrated production, and by comprehensively considering the competitiveness of each steelworks, from the aspect of integrated production and shipment capacity, cost competitiveness, and product strength, all the facilities of Kure Works of Nippon Steel Nisshin Co Ltd and No 1 blast furnace and related equipment of Wakayama Works of Nippon Steel will be closed.

See pdf

Source : Strategic Research Institute
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Tata Steel Reports Q3 and 9 Months Results

Tata Steel has reported consolidated financial results for the quarter and nine month ended December 31 2019. Consolidated steel production stood at 6.99 million tonnes while deliveries grew by 12%QoQ to 7.31 million tonnes. India steel production stood at 4.47 million tonne while deliveries jumped 17%QoQ to 4.85 million tonnes and contributed about 66% of consolidated deliveries. Consolidated revenues increased 3%QoQ to INR 35,520 crores while India revenues grew by 5%QoQ and stood at INR 21,299 crores. Consolidated reported EBITDA was INR 3,659 crores and India reported EBITDA was INR 4,111 crores. India reported PAT was INR 1,194 crores

Tata Steel CEO & Managing Director Mr TV Narendran said “Tata Steel delivered strong growth in volumes despite poor macroeconomic conditions in India as well as globally. In India, our business model helped us counter the slowdown as we successfully penetrated new markets and expanded our customer universe. We were also able to maintain our sales to the auto segment despite the sluggishness faced by the auto industry. Both our acquisitions, Tata Steel BSL and Tata Steel Long Products, continue to deliver operational improvements and achieve milestones in the market place. However, our European operations made a loss as it felt the brunt of the overall slowdown and the consequent shrinking of spreads. This adversely affected our consolidated performance. Our Kalinganagar Phase II expansion is progressing well and we expect to commission the pellet plant and our Cold Rolling Mill facility by FY21. We have recently won chrome ore blocks which will enable us to service our existing ferro chrome customers. Steel demand in India is expected to improve on the back of increasing government spending and a revival in the broader economy. Coronavirus does pose a risk and we are closely monitoring the fallout.”

Voor cijfers, zie pdf.

Source : Strategic Research Institute
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ArcelorMittal Italia and Ilva Commissioners Extend Talks

ArcelorMittal lawyer Ferdinando Emanuele told reporters that ArcelorMittal Italia and commissioners of the Ilva steelworks in southern Italy have agreed to extend talks to the end of the month after making progress towards a possible deal to buy the plant. He said “Negotiations between the two parties have made a significant step forward and set a new deadline to February 28. A Milan court was scheduled to discuss on Friday a government bid to stop ArcelorMittal’s withdrawal from the plant, but the hearing has been postponed to March 6 in order to let the two parties reach a final deal.”

ArcelorMittal had tried to walk away from a 2018 deal after parliament scrapped a guarantee of legal immunity from prosecution over environmental risks during a clean-up of the heavily polluting factory. But the steelmaker has since returned to discussions.

The future of the plant has been a headache to successive Italian governments, which have faced the challenge of balancing the need to clean up years of environmental damage with protecting thousands of jobs in the economically struggling south.

Source : Strategic Research Institute
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RINL Produces First Forged Wheel at Lalganj Plant in Rai Bareily

Rashtriya Ispat Nigam Limited announced that it has produced the first forged wheel from its new plant at Lalganj in Rae Bareily in Uttar Pradesh. This followed the successful conduct of hot trials of the forging line of the plant on Sunday.

RINL has set up the forged wheel plant at a cost of INR 1,680 crore. The plant will have production capacity of 100,000 high speed wheels per annum. The plant will supply wheels to the Indian Railways. The raw material for the Lalgunj plant will be supplied from VSP. It will be transported by train.

Source : Strategic Research Institute
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Sandvik Adds New Tube Line at Mehsana Plant

Sandvik has added a new cold finishing tube manufacturing line at its Mehsana Mill in Gujarat. With the addition of this new high-tech line, Sandvik aims to increase the availability of its high-quality seamless stainless tube, add flexibility for introducing new grades and strengthen regional service. The new line is mainly aimed at the production of heat exchanger tubing and for other demanding industrial applications, and will double Mehsana’s cold-working capacity and thus allowing swifter delivery times across the Asia Pacific region.

The cold forming process, which involves drawing and shaping of the tube, is used to impart higher strength than found in the initial annealed condition. To achieve the highest straightness, low eccentricity and tight dimensional tolerances, Sandvik employs its own patented cold pilgering technique. The new cold finishing line will focus on heat exchanger tube sizes in austenitic, duplex and nickel-based alloys, which can be supplied straight or U-bent for shell-and-tube heat exchangers – cleaned and plugged.

Sandvik Mehsana is a high-tech tube mill that produces advanced corrosion-resistant tube, pipe and hollows for heat exchangers and process equipment across a wide range of industries, including petrochemical, oil and gas, chemical and fertilizer.

Source : Strategic Research Institute
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Indian Government Plans to Sell 5% Stake in SAIL

Media reported that the Indian government is planning to sell 5% stake in Steel Authority of India Ltd through an offer for sale, which could fetch about INR 1,000 crore to the exchequer. Reports quoted official as saying that “Officials from the Department of Investment and Public Asset Management and steel ministry are planning roadshows in Singapore and Hong Kong for SAIL stake sale. However, the Hong Kong roadshow might be called off due to coronavirus outbreak.”

The government holds 75% stake in SAIL. It had last sold 5% stake in the steel CPSE in December 2014.

Source : Strategic Research Institute
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AMNS to Boost Paradip Iron Ore Pellet Plant Capacity

Mint reported that AMNS India plans to enhance capacity at the erstwhile Essar Steel pellet plant at Paradip, Odisha to 6 million tonnes per annum, with room to expand it by 3-6 million tonnes per annum. In a presentation to investors, ArcelorMittal, the majority partner in the joint venture, said the company plans to expand its total pellet-making capacity to 20 million tonnes per annum, including an 8 million tonnes per annum Vishakapatnam plant, by 2021-22.

In December, after taking control of the steel plant, the new management had said it would ramp up steel-making capacity at the plant to 12-15 million tonnes per annum from the current 9.6 million tonnes per annum.

Following the capacity expansion, about 30% of the pellets produced can be exported, since captive consumption would only require about 70% of installed capacity.

Source : Strategic Research Institute
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Voestalpine to Shorten Shifts at Kindberg Seamless Tube Plant

Voestalpine plans to introduce short-time working for most staff at a seamless tube plant in Austria due to a fall in orders as a result of US tariffs. From March, up to 950 of the 1,100 staff at the plant in Kindberg will work short-time shifts for six months. Board member Franz Kainersdorfer said “The aim is to give us more flexibility for the next six months, during which we expect the market environment to remain very volatile.”

Voestalpine said “Washington launched 25% tariffs on steel imports from the European Union last summer that had hit demand for tubes produced by Voestalpine Tubulars, a joint venture with US firm NOV Grant Prideco.”

Source : Strategic Research Institute
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MMK Group Announces Financial Results for Q4 and FY 2019

Russian steel giant Magnitogorsk Iron & Steel Works announced its financial results for Q4 and 2019. MMK Group’s revenue in Q4 declined by 14.3% QoQ and amounted to USD 1,722 million amid seasonal weakening of business activity and decline in prices on the global steel markets. EBITDA amounted to USD 335 million, down 36.2% QoQ. Net profit for Q4 2019 amounted to USD 88 million, down 67.5% QoQ. The decline was due to seasonal weakening of business activity and other negative market factors. MMK Group’s revenue in 2019 declined by 7.9% YoY and amounted to USD 7,566 million, which was partly due to lower sales as a result of the reconstruction of hot-rolling Mill 2500 during 2019. EBITDA amounted to USD 1,797 million, down 25.7% YoY. This decline was due to lower revenue, as well as negative trends on the global steel market. Net profit amounted to USD 856 million, down 35.0% YoY.

Steel segment (Russia) - Revenue for Q4 2019 amounted to USD 1,660 million, down 13.4% QoQ amid a decrease in sales volumes as a result of seasonally weak business activity and the significant correction in global steel prices. Revenue for FY 2019 declined by 7.7% YoY to USD 7,226 million due to lower metal products prices. The segment’s EBITDA for Q4 2019 amounted to USD 327 million, down 36.9% QoQ due to lower revenue. In FY 2019, EBITDA amounted to USD 1,744 million, down 23.6% YoY, which reflected negative factors on the global steel markets. The cost of sales for a tonne of slab in Q4 2019 amounted to USD 283, down 9.6% QoQ. Key factors for this decline were higher pig iron production amid lower volumes of steel production at the electric-furnace melting shop and lower shares of pellets and scrap in the blast furnace charge. It was also positively influenced by the correction in prices for iron ore and coal concentrate. In FY 2019, the cost of sales for a tonne of slab increased by 4.8% YoY to USD 305, reflecting growth in global indices for iron ore during the year.

Steel segment (Turkey) - The segment’s revenue for Q4 2019 amounted to USD 110 million, down 19.1% QoQ. This decline was due to a decrease in the volume of domestic and exports sales of galvanized steel. In FY 2019, the segment’s revenue amounted to USD 520 million, down 16.1% YoY amid the challenging economic situation on the Turkish market. The Company managed to partly offset the decline in domestic demand by relocating sales towards Europe and the Middle East, which resulted in a growth in export sales by one-third compared to 2018.

OUTLOOK - The Company expects its metal production to decline in Q1 2020 due to the maintenance of blast furnace and converter facilities, as well as suspension of operations at hot-rolling Mill 2500 due to its planned reconstruction in March. The Company’s performance should be supported by the favourable price environment on the domestic market and price stabilisation for key raw materials. The Company’s performance should be further supported by measures aimed at operational efficiency increase and high capacity utilisation of high-margin production units.

Source : Strategic Research Institute
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7 Workers Suffer Burns at Kamal Steel Mills in Dhaka’s Kadamtoli

Seven workers have been burnt while melting steel at Kamal Steel Mills in Dhaka’s Kadamtoli. They were taken to Dhaka Medical College Hospital’s Sheikh Hasina National Burn and Plastic Surgery Institute. Among the victims, 3 workers suffered 6-19 percent and others suffered minor burns on their bodies and were released after receiving first aid.

According to the factory’s supervisor Sanjit Mandal, the seven were melting iron at night when the flames from the furnace suddenly erupted and caused them burn injuries.

Source : Strategic Research Institute
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Metalloinvest Lebedinsky GOK Produced 750 Million Tonnes of Iron Ore Concentrate

Metalloinvest’s beneficiation plant at Lebedinsky GOK reached a significant milestone in the production of iron ore concentrate with an iron content of up to 69.5%in , surpassing 750 million tonnes in terms of volume produced. The first tonne of this product was produced at the enterprise in November 1972 following the launch of the first section of the beneficiation plant. At that time its capacity was limited to producing 7.5 million tonnes of iron ore per year.

In January, the Lebedinsky GOK beneficiation plant also reported that it had reached the production milestone of 15 million tonnes of dried concentrate. This type of product has been in production since 2007 in limited quantities of up to 2 million tonnes per year. The current site for producing dried concentrate allows the plant to export a dehydrated concentrate which will not freeze while being transported by rail in winter.

Source : Strategic Research Institute
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ABB Installs Ability Asset Vista Conditioning Monitoring at CELSA Bar Mill

ABB has successfully installed ABB Ability Asset Vista Conditioning Monitoring for metals at the CELSA III MBM mill in Barcelona, to help improve equipment reliability, prevent unplanned downtime, optimize maintenance and increase overall plant efficiency and productivity. Backed by the knowledge bank of ABB’s extensive maintenance libraries for electrical equipment, the ABB Ability based application monitors the health of a variety of production assets, including automation, instrumentation, electrical, mechanical and/or process equipment. It offers CELSA a complete overview of its production assets’ health, avoiding unnecessary maintenance, reducing exposure to hazardous areas and speeding repairs.ABB Ability Asset Vista Conditioning Monitoring for metals will initially collect real-time data on the condition of common equipment across CELSA’s bar mill including hydraulic units, lubrication devices, motors, drives and sensors. In the future, it can be scaled up to assess and evaluate the health of more complex, specialized assets and components to cater to changing business demands.

The solution offers operations, automation and maintenance engineers an in-depth overview of the performance of plant equipment and systems. Reports generated by the software are periodically sent to the customer, enabling CELSA to plan and schedule maintenance activities based on the actual condition of equipment and systems at the mill, helping to boost operational efficiency, increase uptime and reduce costs.

Source : Strategic Research Institute
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Aperam ziet financieel directeur vertrekken

Gepubliceerd op 11 februari 2020 09:22 | Views: 202

Aperam 09:28
31,60 +0,57 (+1,84%)

LUXEMBURG (AFN) - Financieel directeur Sandeep Jalan van roestvrijstaalbedrijf Apram heeft een nieuwe baan gevonden en vertrekt. Jalan begint in mei als financieel directeur bij SES, dat zich richt op draadloze connectiviteit en videostreaming.

Aperam heeft het vertrek van Jalan nog niet bevestigd. Hij was sinds 2013 financieel directeur bij de maker van roestvrijstaal.
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SAIL Will Not Close ASP, SSP and VISL if Buyers Not Found

PTI reported that Steel Authority of India Ltd will not close down three of its loss-making speciality steel plants if the company does not find buyers for these units, SAIL Chairman Mr Anil Kumar Chaudhary, when asked whether the company will consider shutting down of these plants, if the steel maker does not find suitable buyers for them, said “Process of divestment is on. We will not close down these special units.”

Earlier, the Indian government had approved outright sale of Alloy Steels Plant in West Bengal, Salem Steel Plant in Tamil Nadu and Visvesvaraya Iron and Steel Plant in Karnakata, as accumulated loss in these units was over INR370 crore in the last fiscal. In July last year, the Department of Investment and Public Asset Management had invited bids for 100 per cent stake sale in the three units of SAIL. However, the last date for submission of express of interests was extended thrice.

Source : Strategic Research Institute
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Thyssenkrupp Steel Unit Head Mr Desai to Leave – Handelsblatt

German newspaper Handelsblatt, citing sources close to the group's supervisory board, reported that chief executive of Thyssenkrupp's steel division Mr Premal Desai will leave at the end of the month. Handelsblatt said that he is likely to be succeeded by Bernhard Osburg, currently the unit's chief commercial officer.

Mr Premal Desai has been leading the division since June 2019.

Source : Strategic Research Institute
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Tenova to Supply Consteel EAF to Nippon Steel Hirohata Works

Tenova was awarded a contract for the supply of a Consteel Electric Arc Furnace to Nippon Steel Corporation. This new Consteel EAF will be installed at their Hirohata works. Production is targeted to start in the first half of the 2022 financial year. Tenova Sales Director for Electric Arc & Ladle Furnaces Mario Marcozzi said “With this new installation, Hirohata plant will save about 400,000 tons per year of CO2 emissions. Moreover, this project consolidates Tenova presence in the important Asian market”.

With more than seventy-five references worldwide, Tenova’s Consteel EAF offers high quality standards as well as an environmentally friendly approach to steel production compared to the other EAF technology.

Source : Strategic Research Institute
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MMK Sets Record for Shipments to Domestic Market in 2019

In 2019, MMK's shipments of rolled steel to the domestic market, including the CIS countries, exceeded 9.7 million tonnes, a record for the entire post-Soviet history of the company. The plant set its previous record for shipments to the domestic market in 2014, with 9.588 million tonnes. Over the past 25 years, MMK has consistently increased its presence in the Russian and CIS markets. In 1996-1999, up to two-thirds of total sales were exported to foreign countries, but by the mid-2000s the share of the domestic market (including the CIS) in shipments exceeded 50%. In the 2010s, the Company further increased its emphasis on the domestic market: in 2019, the domestic market accounted for 88.5% of sales, while exports amounted to 11.5%.

The record figures for 2019 are the result of the Company's implementation of an import substitution policy and its prioritization of meeting demand on the domestic market, which has been the focus of MMK's largest investment projects in recent decades. These include the creation of a modern section rolling factory and facilities for the production of coated steel, as well as the construction of the largest industrial complexes for the manufacturing of rolled plates and cold-rolled galvanised steel for the automotive industry. Today, MMK offers consumers a wide range of high-quality rolled metal products, the majority of which are products with high added value.

Source : Strategic Research Institute
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