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EEOC Sues Schuff Steel for Race & National Origin Discrimination

Strategic Research Institute
Published on :
30 Sep, 2022, 6:34 am

The US Equal Employment Opportunity Commission has charged in a lawsuit filed on 28 September 2022 a steel fabrication and erection company Schuff Steel Company violated federal law by harassing African American and Hispanic employees at its location in Eloy in Arizona and retaliating against them when they complained. According to the EEOC’s lawsuit, Schuff Steel’s Eloy plant manager regularly used racial slurs against Black and Hispanic employees, including using the N-word, as well as anti-Hispanic slurs. Additionally, the EEOC alleges the plant manager told his staff that he preferred white employees and yelled white power at work. The plant manager also ridiculed Hispanic employees who did not speak English well.

The EEOC further charged that when Schuff Steel employees complained to human resources or to the plant manager about the harassment, the plant manager retaliated against those employees by firing them or moving them to the graveyard shift. The anti-Hispanic and anti-African American harassment ultimately forced some employees at Schuff Steel to resign

Such alleged conduct violates Title VII of the Civil Rights Act of 1964, which prohibits harass­ment based on race and/or national origin, as well as retaliation for complaining about it.
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RINL VSP Back in Black in 2021-22 after 6 Years

Strategic Research Institute
Published on :
30 Sep, 2022, 6:35 am

Rashtriya Ispat Nigam Limited CMD Mr Atul Bhatt while addressing shareholders of RINL mentioned that during the financial year 2021-22, RINL achieved highest turnover of INR 28,215 crores since inception, with a growth of 57% over the previous year. Also, that the Company earned positive Profit Before Tax after 6 Financial Years. During the year, the company achieved an EBITDA of INR 3469 crores with a growth of 148% over the previous year.

Best ever performance was registered during the year in all major production areas with growth over previous year, in spite of curtailed operations in Q4 on account of coking coal crisis. The hot metal production of 5.77 million tonnes achieved during the year is the highest for any single unit of Public Sector Steel Plant in the country. Best Ever Performance was registered during the year in all important Techno Economic parameters.

High End Value Added Steel production was increased by 29% over previous year. Based on the Customers requirement, 22 new grades were developed during the year.

The Company achieved a growth of 81% in the Sales to Projects Segment. With this, a growth of 28% was achieved in Domestic Sales, though the Automobile Sector was impacted by shortage of semiconductor chips. With focus on High End Value Added Steel production, growth of 18% was achieved over the previous year.
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General Court Upheld Prohibition of Thyssenkrupp & Tata Steel JV

Strategic Research Institute
Published on :
30 Sep, 2022, 6:37 am

Europe’s General Court has dismissed an appeal against the EC’s 2019 decision to prohibit Thyssenkrupp’s proposed joint venture with Tata Steel, ruling that the EC succeeded in proving there was a sufficient degree of probability of competition being harmed by the JV. However the case is on appeal to the Court of Justice of the EU, which will make a final determination regarding the legal standard.

The EC claimed that the JV would not have resulted in the creation or the strengthening of a dominant position but would have led to a significant impediment to effective competition in a substantial part of the internal market, making it a gap case under the EU Merger Regulation.

The last time the GC ruled on a gap case, in 2020, the legal standard implied was higher: with the GC indicating a strong probability, when demonstrating that there would be an SIEC, and sufficiently high degree of probability of price increases.
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Worthington Industries to Separate Steel Processing Business

Strategic Research Institute
Published on :
30 Sep, 2022, 6:38 am

Columbus Ohio headquartered Worthington Industries Board of Directors have approved a plan to pursue a separation of Steel Processing business into a new public company. Worthington Industries plans to effect the separation via a distribution of stock of the Steel Processing business, which is expected to be tax-free to shareholders for US federal income tax purposes. The Company expects to complete the separation by early 2024. New Worthington will be a market-leading company with premier brands in attractive end markets in Consumer Products, Building Products and Sustainable Energy Solutions. As a more focused company, New Worthington will be well-positioned to capitalize on key trends in sustainability, technology, remodeling and construction and outdoor living. New Worthington will continue to pursue a growth strategy focused on leveraging its robust new product pipeline of sustainable, tech-enabled solutions to disrupt mature markets. New Worthington will continue to leverage the Worthington Business System, which powers a winning culture and higher growth and profitability through Transformation, Innovation and Acquisitions. The new company’s high margins and asset-light focus is expected to enable strong free cash flow generation and returns for shareholders. Further, New Worthington’s value will no longer be highly correlated to the price of steel, providing the opportunity for premium sector multiples. Benefits of the Separation 1. The planned separation is expected to provide both the New Worthington and Worthington Steel with: 2. Enhanced agility and sharpened strategic focus: Each company will have a sharper focus on its distinct markets and strategic priorities 3. Tailored capital allocation strategies: Each company is expected to have modest leverage and ample liquidity combined with strong cash flows, providing flexibility to deploy capital toward its specific growth opportunities. Goldman Sachs & Co. LLC is serving as Worthington’s lead financial advisor, and Latham & Watkins LLP is serving as primary legal counsel.
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EPCG to Vote on Buying Zeljezara Niksic Steel Mill in Montenegrin

Strategic Research Institute
Published on :
30 Sep, 2022, 6:40 am

SeeNews reported that Montenegrin state owned power utility company EPCG t will propose to shareholders to launch the process for the acquisition of steel mill Zeljezara Niksic from Turkey's Toscelik. The proposal is on the agenda of the extraordinary shareholders' meeting of EPCG, to be held on 3 October

Last month, Montenegro's Prime Minister Mr Dritan Abazovic said the government gave the go-ahead to EPCG to start talks for the acquisition of Zeljezara Niksic. He had said “EPCG commits to negotiate the sale price and the way to execute the acquisition of Zeljezara with the Turkish company.”

Toscelik acquired Zeljezara Niksic in 2012 for EUR 15.1 million after placing the best bid in an auction launched by the government. Toscelik suspended production activities at Zeljezara Niksic in March 2021, due to a drop in orders caused by the coronavirus pandemic. Last year, the Turkish company said it is in talks for the sale of the steel mill.
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Primetals to Modernize Plate Mill Drives of SIJ Acroni in Slovenia

Strategic Research Institute
Published on :
30 Sep, 2022, 6:41 am

Slovenian steel producer SIJ Acroni, which is part of SIJ Group, has tasked Primetals Technologies with the replacement of the existing cycloconverter drive control for the upper and lower motors on the plate mill's roughing stand at the Jesenice production site in Slovenia. Rendering the old drives obsolete, Primetals Technologies installed the VarioVerter cycloconverter solution. The project aims to increase availability and secure the supply of spare parts for the drives. Two main factors played a role when SIJ Acroni chose Primetals Technologies as supplier: a variable replacement concept and competitive investment costs.

Primetals Technologies' scope of supply included implementing two VarioVerter cycloconverter controllers, replacing the field control units, commissioning, and a new workstation for easy and remote maintenance and diagnosis of the drive system. The integration into the plate mill's existing basic automation control system was re-established, leaving the interface largely unchanged. To be able to reuse the existing power modules, Primetals Technologies’ tailormade connection cabinet with amplifier cards handles the hardwired interface between the controller and the thyristors.

Installation and startup were completed on schedule. After a short startup period, the VarioVerter was adjusted to handle all products and yield strengths without restrictions. Additional technological functions, like ski control, were included in the control of the VarioVerter cycloconverter.

SIJ Acroni is Europe's leading producer of stainless quarto plates. The company also specializes in electric and custom steels, which are sold as hot and cold-rolled coils and heavy plates mainly for use in niche products. SIJ Acroni’s plant is located in Jesenice, about 60 kilometers northwest of Ljubljana, the capital city of Slovenia.
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US Steel Submits New Contract Proposal to Workers

Strategic Research Institute
Published on :
30 Sep, 2022, 6:43 am

US Steel has made a new contract offer to steelworkers that would slightly boost its proposed pay increase from 13.6% over four years to 15% and that would cap health insurance spending at the current level. US Steel President & CEO Mr David Burritt said in a letter to steelworkers “This proposal provides strong wage growth, strong upside opportunity and strong downside protection for our employees. We know that the steel industry can be volatile. That is why our responsible compensation proposal of robust base wage increases, a guaranteed payable-now bonus, uncapped profit sharing, and inflation protection, combined with premium-free healthcare, is designed to support and reward employees through business cycles.”

He added “We revised our proposal to meet our employees’ need for consistency in health care but to also meet our needs to control costs. Instead of the High Performance Network, we are proposing a cap and recover plan that will keep health care costs at 2022 levels. If costs rise, we will work with the USW to offset the costs. This is similar to what the USW negotiated with other steel companies.”

US Steel is offering a 4% increase the first year, a 3% pay raise in years two and three and a 4% wage hike in the fourth year. That's a compounded pay increase of 15%, still short of the 20% Cleveland-Cliffs is offering.
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AMNS India Submits EoI for Srei NBFCs

Strategic Research Institute
Published on :
30 Sep, 2022, 6:45 am

BQ Prime reports suggest that AM/NS India has expressed interest to buy Srei Group's non-bank lenders under the bankruptcy law and has submitted unsolicited expression of interest. The creditors are yet to decide whether they can allow the entry of a new bidder in the current scenario

An EoI, if accepted, will allow AM/NS India to enter the data room for the Srei Group companies. Data room access is allowed to prospective bidders so they may formulate a firm bid under the insolvency proceedings. Such access could arm the steelmaker with inside information in its legal battles, the first person quoted above said.

In August, Srei Infrastructure Finance had approached the Supreme Court, challenging a National Company Law Appellate Tribunal order that allowed AM/NS India to take control over Odisha Slurry Pipeline under insolvency. The lender has claimed that it was not given the same treatment as other secured creditors in the fund distribution strategy proposed by the steel firm in its resolution plan.

Earlier this month, financial creditors to Srei Infrastructure Finance & Srei Equipment Finance had restarted the bidding process for two bidders who were participating in the insolvency proceedings. The bidders-a consortium between Varde Partners and Arena Investors, as well as consortium led by UK-based entrepreneur Shon Randhawa-had been given an extended opportunity to submit revised bids after they had failed to submit earnest money deposit previously.
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Hyundai Steel Strike Clouds Steel Availability in Korea Further

Strategic Research Institute
Published on :
30 Sep, 2022, 6:47 am

Joonang Daily reported that supply disruptions loom in South Korea’s steel industry as the country’s two largest steelmakers POSCO & Hyundai Steel, accounting for 80% crude steel production, are struggling to fully operate their plants. While POSCO is still in the process of restoring its Pohang plant that was flooded by Typhoon Hinnamnor earlier this month, labor unions at Hyundai Steel have been going on a series of strikes after failing to negotiate with management.

Hyundai Steel’s four labor unions went on strike for eight hours on 24 & 25 September. They said they will continuously stage strikes unexpectedly until the company accepts their demands. Hyundai Steel unions are demanding a base monthly pay raise of KWR 165,200 and 15% of last year’s operating profit as incentives. It also requested KWR 4 million of bonuses, arguing that employees of Hyundai Motor, Kia and Hyundai Mobis received that amount. It already voted on the strike and 94% of workers agreed to a walkout. It won permission from the National Labor Relations Commission to go ahead with its plan.

As a result of disruptions at POSCP’s Phang plant, steel prices have surged by 8-10% and are expected to rise even more rapidly in coming weeks as Hyundai Steel employees are planning more strikes.
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CCI Clears AM/NS India’s Acquisition of Essar Group Assets

Strategic Research Institute
Published on :
30 Sep, 2022, 6:49 am

India’s Competition Commission of India has cleared the acquisition of certain ports and power infrastructure assets of Essar Group by AM/NS India. The deal covers port assets in Gujarat, Andhra Pradesh, and Odisha as well as two power plants at Hazira and an electricity transmission line.

The proposed combination involves the acquisition of certain power assets of Essar Power Hazira & Gandhar Hazira Transmission. The port assets include Hazira Cargo Terminals, Ibrox Aviation & Trading, Essar Bulk Terminal, Essar Bulk Terminal Paradip and Essar Vizag Terminals. Other assets are Snow White Agencies & Bhagwat Steel. This acquisition is worth USD 2.4 billion.

The deal covers a 25 million tonnes per annum capacity jetty at the all-weather, deep draft bulk port terminal at Hazira, Gujarat, captive and adjacent to the Hazira steel plant.

It also includes a 16 million tonnes all-weather, deep draft terminal at Visakhapatnam, Andhra Pradesh, along with an integrated conveyor connected to AM/NS India’s 8 million tonnes a year iron ore pellet plant in the port city.

The deal also covers a 12 million tonnes deep-water jetty at Paradip, Odisha, along with a dedicated conveyor that handles 100% of pellet shipments from AM/NS India’s Paradip pellet plant.

It also includes a 270 MW multi-fuel power plant at Hazira, which has a long-term power purchase agreement with the adjacent steelmaking facility, a 515 MW gas-based power plant, and allied land.

And so is a 100-kilometer Gandhar to Hazira transmission line, connecting AMNS India’s steelmaking complex with the central electricity grid.
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German Government Announces Price Brakes For Electricity & Gas

Strategic Research Institute
Published on :
30 Sep, 2022, 6:50 am

The German federal government has announced EUR 65 billion comprehensive package of measures to contain the energy price crisis on 29 September. German Chancellor Mr Olaf Scholz said “We will get through this winter. The government would crack down on energy providers that are making excess profits amid the high energy prices that have been largely caused by Russia's war against Ukraine as well as Moscow's reduction of gas exports to Europe. There are excess profits by some producers who can simply take advantage of the situation that the very expensive price of gas determines the price of electricity, and that therefore make a lot of money. We are firmly determined to change the market rules in such a way that such windfall profits no longer occur, or that they are skimmed off.”

German Steel Federation W Stahl President Mr Hans Jürgen Kerkhoff said “The announced brake on energy prices, including industry, is an important step in the right direction. The steel industry and the steel-based value chains face intense international competition. They are under existential pressure due to the exploding prices for electricity and gas. Now it's all about speed and effectiveness. It is about bridging the crisis and preventing serious damage to the industrial base.”

He also said “The skyrocketing energy prices are endangering Germany as a steel location and the steel-based value chains based on it. The current energy crisis must be prevented from causing permanent damage to the industrial base, with all the consequences for value chains, jobs and investments. Rapid action to bridge the crisis is urgently needed. We therefore appeal to the Council of Energy Ministers to create solutions, particularly for energy-intensive industries such as the steel industry. Now it is important to take very fast-acting measures that can immediately bring electricity and gas prices to an internationally competitive level.”

While gas is only partly used in Germany to produce energy, the current market design has caused the high gas prices to jack up general energy prices, meaning that providers who produce energy from other sources such as wind, solar or coal are making huge profits. Extrapolated for the year as a whole, the additional costs for electricity and gas in steel companies in Germany are currently around 10 billion euros compared to the beginning of the previous year. This is around a quarter of the turnover that the industry has achieved on average in recent years.
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European Industry Seeks More Measures over Energy Crisis

Strategic Research Institute
Published on :
30 Sep, 2022, 6:52 am

The energy intensive industries in Europe have welcomed the efforts undertaken by the Member States to solve the energy crisis in the European Union. Nevertheless, ahead of the next Extraordinary Energy Council, they underlined the need for more immediate and efficient measures to be put in place, as we observe the crisis circumstances worsening day by day in our industries.

They said “With the current gas price reaching about 200 EUR per MWh, the situation remains unbearable for the energy intensive producers. The impact of the volatility and extremely high levels of gas and electricity prices cannot be sustained. The consequences are already felt among the industry, with shut-downs of plants and reduction of production in many sectors with the consequence of job losses. The competitiveness of the European companies is threatened.”

They said “We reiterate our call on the European leaders to urgently introduce EU-wide measures aimed at addressing the impact of natural gas prices on industrial competitiveness and measures designed to disconnect electricity prices from gas prices. Moreover, the Temporary Crisis Framework needs to be prolonged and reviewed to adapt to the current circumstances. It must be more flexible and allow for fast approval of the state aid. For example, such requirement as negative EBITDA must be removed, as it means the aid would arrive too late.”

The statement has been made by following associations

Fertilizer Europe

CEMBUREU

Glass Alliance

Euromines

Cepi

Eurofer

Eurometux

Cefic

Eurima

European Lime Association

Euro Alliance

EXCA

Cerame Unie

On 30 September, the Council of Energy Ministers of the European Union will meet to decide on contingency measures for the energy markets.
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Australian Research Council Grants Funds for Slag Use Fertilizer

Strategic Research Institute
Published on :
3 Oct, 2022, 6:01 am

The Australian Research Council has granted AUD 473,854 to University of Newcastle Associate Professor Tom Honeyands, whose team is working to develop a process to separate phosphorus from steelmaking slag while the slag is still molten, reducing the time it makes to produce the steel. The process also upgrades the phosphorous to use for valuable fertilizer.

Benefits are anticipated to include increased utilization of steel slag, creation of a valuable fertilizer co-product, decreased greenhouse gas emissions, and a reduction in the penalty applied to Australian iron ores.

The project will be carried out in collaboration with BHP Steelworks and Wollongong University.
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BARC Studies Impact of Irradiation on Steel in Nuclear Reactor

Strategic Research Institute
Published on :
3 Oct, 2022, 5:58 am

Bhabha Atomic Research Center’s scientists Mr AP Srivastava, Mr SK Sharma, Mr S Saini, Mr S Neogy, Mr SK Ghosh, Mr D Kabiraj & Mr R Tewari in recently published research paper “Understanding the effect of irradiation temperature on microstructural evolution of 20MnMoNi55 steel” in Nature have highlighted the effect of irradiation temperature on microstructural evolution of Reactor pressure vessel steel in nuclear applications.

Reactor pressure vessel, made up of special grade low alloy steel, acts as a pressure boundary in light water reactors. During reactor operation, reactor pressure vessels are known to get exposed to modest doses of neutron irradiation in their lifetime, typically??0.05-0.1 dpa after 40 years of operation. This seemingly small dose, however, is sufficient to reduce the fracture toughness of reactor pressure vessel significantly. Hence, a study on the performance of RPV steel under irradiation assumes a lot of significance. Under reactor operating conditions, when a high energy neutron enters in a structural material, it usually dislodges a host atom from its lattice position with high kinetic energy. This dislodged atom, which is commonly known as primary knock on atom, displaces other host atoms from their lattice positions creating collision cascade which generates large number of point defects such as vacancies, self-interstitial atoms and their clusters. The concentration, configuration and distribution of these irradiation induced defects in the microstructure finally govern the structural integrity of any in-core reactor structural material

Irradiation experiments were performed with varying ion energies to achieve nearly uniform irradiation damage of 0.05, 0.2 and 3 dpa in a?300nm wide region. Irradiated samples were characterized using GIXRD, PAS, TEM and nanoindentation. Unirradiated samples showed predominant presence of a combination of di- and tri-vacancy type of defects. Most of the dislocations present in unirradiated samples were screw dislocations, while mixed type was noticed upon irradiation irrespective of the irradiation temperature. PAS study showed formation of distinct defect types at different irradiation temperatures. TEM study confirmed formation of dislocation loops and defect clusters on irradiation. Higher irradiation temperatures resulted in the extension of the width of the damage region owing to increased migration of defects.

In the present study, indigenously developed RPV steel16 of SA 508 Grade 3 Class 1 type has been irradiated with helium ion to achieve various levels of damage including that which is usually experienced by such steels in nuclear reactors. The primary aim of this study has been to assess the microstructural stability of the RPV steel against irradiation damage to 0.05, 0.2 and 3 dpa imparted under varying irradiation temperature and to identify the underlying mechanisms leading to various responses with respect to dose and temperature variations. Irradiation temperature of 573 K has been selected as it is close to reactor operating temperature and a low irradiation temperature of 77 K has been selected as at this temperature, primary defect formation will be slightly enhanced whereas their diffusion will be substantially reduced compared to high temperature irradiation which in turn may dictate the observed difference in radiation damage responses, while an increase in temperature shall reflect the recombination and annihilation of defects due to enhancement in mobility. The microstructural stability has been assessed in terms of changes in domain size, microstrain, dislocation density, S-parameter (open volume defect density) and hardness. The defect microstructure developed under irradiation has been characterized using transmission electron microscopy.
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Animmersion Develops Augmented Reality Vision of Steel Making

Strategic Research Institute
Published on :
3 Oct, 2022, 6:03 am

The future vision of low carbon steelmaking in the UK has been brought to life as part of an augmented reality project developed by the Materials Processing Institute and Animmersion UK. The Middlesbrough-based immersive digital experience specialist created Steelmaking of the Future for the Materials Processing Institute to enable it to showcase the advances it is making in research and innovation in the steel industry on the road to Net Zero. It was unveiled for the first time at the UK Metals Expo, which was held at Birmingham’s NEC in September. The idea for the model came from Institute’s Group Manager, Circular Economy Dr Lucy Smith, who gained inspiration from the events surrounding the United Nations Climate Change Conference held in Glasgow in November last year. She said: “The Institute is at the cutting edge of research and innovation in transforming the UK’s steel industry into a modern, low carbon industry with a focus on creating more efficient processes, using greener fuels, and implementing a circular economy. We wanted to showcase the work the Institute is leading on, including replacing fossil fuels which currently power traditional furnaces with hydrogen and electricity, and promoting the expansion of green steel production in the race to decarbonise.” Animmersion UK built a scale model of a steel plant and created an app which users use on their mobile phone to scan QR codes which then delivers information to explain the advances. Materials Processing Institute CEP Mr Chris McDonald said “This hi-tech model allows us to explain in an engaging and informative way just what steelmaking will look like in 2050, the year the government has pledged to meet its net zero target. The Institute is based in the Tees Valley, and we are pleased to support local companies, such as Animmersion UK, which are experts in their field.”
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DBS Hong Kong Approves Sustainability-Linked Facility MICA Group

Strategic Research Institute
Published on :
3 Oct, 2022, 6:05 am

DBS Bank’s Hong Kong Branch has announced the signing of the first sustainability-linked revolving trade facility for the Chinese iron ore, steel and coal trading company MICA Group, which consists of Heilong International & Meika (Hong Kong). Carrying a six-month tenor, DBS Hong Kong's major sustainability-linked trade facility aims to encourage MICA Group to trade with responsible suppliers who are members of the International Council on Mining and Metals . ICMM pledges to work for a safe, just and sustainable world that is enabled by responsibly produced minerals and metals. Heilong and Meika are both principally engaged in the trading of iron ore, steel and coal. Incorporated in Hong Kong in 2013, Heilong aims to source iron ore directly from overseas mines. Meika was established in 2014 to serve as the second trading platform to MICA Group in Hong Kong. DBS is a leading financial services group in Asia with a presence in 18 markets. Headquartered and listed in Singapore, DBS is in the three key Asian axes of growth: Greater China, Southeast Asia and South Asia.
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Expanded Doncasters Precision Casting to Open on 6 October

Strategic Research Institute
Published on :
3 Oct, 2022, 6:07 am

Leading British manufacturer of high-precision alloy engineering components Doncasters has invested GBP 7.2 million to extend Doncasters Precision Castings Deritend in Droitwich Spa in UK. The extension will deliver great benefits to the business, including improved parts flow and safety, reduced environmental impact and lead times, and an increased capacity overall that allows the business to invest in advanced technology and local talent in the future. The extended Doncasters Precision Casting site will be officially opened on 6 October 2022.

Until now, Doncasters operated two sites in Droitwich, two miles apart, with different processes taking place at each. This meant that materials and products had to be moved back and forth during the engineering process. Now, the two teams will reunite, improving operation and energy efficiencies and working lives for staff. Over 340 staff will work in the new state-of-the-art facility, with future employment opportunities available for people in the Worcestershire region and beyond.

The extension has also allowed Doncasters to make several upgrades to its existing processes, particularly its ceramics core manufacturing. Ceramics now has its own dedicated building so this product area can continue to grow without impacting other operations. The site is also committed to reducing the energy baseload by 10% whilst growing renewable consumption by 10%.

Doncasters is a leading international manufacturer of high-precision, engineering components, designed to operate in the most demanding of conditions. Through advanced manufacturing facilities across Europe and the US, it serve the world’s leading OEMs in the aerospace, industrial gas turbine and specialist automotive markets.
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ZK International Group Upbeat on Prospects in H2 of 2022

Strategic Research Institute
Published on :
3 Oct, 2022, 6:10 am

Wenzhou China based stainless steel and carbon steel pipe producer ZK International Group announced that its revenue increased 1.7% to a record USD 42.89 million due to increased market demand over stainless steel coil and nickel material. During six months, the sales of stainless steel coil and nickel material accounts for approximately 65.4% of total revenue, as compared to 53.9% of total revenue during six months in 2021.

ZK International Chairman & Chief Executive Officer Mr Jiancong Huang said “Bucking the trend of a declining economy during the first quarter of 2022 as countries including China battled the inflation and the rise of material prices, we are pleased to report record revenue increase for the first half of fiscal year 2022. During first half of fiscal year 2022, we successfully executed our spent-cut program which aims to reduce operating expenses without impacting sales performance. With operating expenses declined 41.41%, revenue increased by 1.71% and our first half of fiscal year 2022 results underscore continuing order strength for our proprietary stainless steel and carbon steel pipe products. We are proud of what the Company and the staff has achieved for the first half of fiscal year 2022. Looking forward, we expect revenue to continue to grow for the second half of the fiscal year 2022.”

Gross profit decreased by 15.73% to US 3.97 million. Gross margin was 9.3%, compared to 11.2% for the same period of the prior fiscal period. The decrease of gross profit was primarily due to increased sales percentage of low margin products such as stainless steel coil products and decreased sales percentage of high-margin products such as water and gas piping products.

ZK International Group is a manufacturer and supplier of patented high-performance stainless steel and carbon steel pipe products that require sophisticated water or gas pipeline systems. The Company owns 33 patents, 21 trademarks, 2 Technical Achievement Awards, and 10 National and Industry Standard Awards. ZK International is Quality Management System Certified (ISO9001), Environmental Management System Certified (ISO1401), and a National Industrial Stainless Steel Production Licensee that is focused on supplying steel piping for the multi-billion dollar industries of Gas and Water sectors. ZK has supplied stainless steel pipelines for over 2,000 projects, including the Beijing National Airport, the "Water Cube", and "Bird's Nest", which were venues for the 2008 Beijing Olympics.
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EBRD Grants Loan to Tashkent Pipe Plant for LSAW Pipes

Strategic Research Institute
Published on :
3 Oct, 2022, 6:12 am

The European Bank for Reconstruction and Development is promoting energy efficiency in Uzbekistan’s steel production sector by supporting operations of the country’s leading private producer of prefabricated steel products Tashkent Pipe Plant. A senior EBRD loan of up to USD 15 million will allow TPP to launch the production of longitudinal submerged arc-welded pipes and gradually reduce the output of the spirally submerged arc-welded pipes SSAW.

LSAW pipes, with a superior ductility, weld toughness and sealing, are widely used in such areas as construction, central heating, water supply, sewage treatment. This is particularly important for the most populous Central Asian state the economy of which is set to grow by around 6% in coming years. This growth, among other factors, is driven by a greater demand for new housing required for Uzbekistan’s increasing population.

The method of welding the pipes longitudinally requires significantly less energy than spirally, and also increases their durability. The project is also aiming to reduce TPP’s annual CO2 emissions by more than 1,100 tonnes. This green financing is part of the Bank’s Green Economy Transition approach in line with which the EBRD is planning to scale up its climate and environmental finance to make more than 50% of its annual investment green by 2025.

The project is supported by the Japan-EBRD Cooperation Fund and the Bank’s Finance and Technology Transfer Centre for Climate Change programme supported by the Global Environment Facility.

Earlier this year, the EBRD extended a working capital loan of USD 10 million to Tashkent Pipe Plant. It was used to purchase raw materials for the production of pipes, enabling the Company to prepare for the larger CAPEX program.
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Danieli to Revamp Jiangsu Shagang’s Blast Furnace

Strategic Research Institute
Published on :
3 Oct, 2022, 6:15 am

Jiangsu Shagang Group has awarded a contract for the revamp of their 5800 cubic meter Blast Furnace No 4 to Danieli Corus. The furnace lining zones that are most critical with respect to thermal load resistance will be converted from copper stave cooling to the Danieli Corus design based on high conductivity graphite refractories in combination with machined copper plate coolers, designated the indestructible bosh by some steel producers for its unparalleled campaign length capability.

The Danieli Corus Blast Furnace design is the only foreign cooling and lining technology that has been embraced by the Chinese steel industry. This will be the third time it is implemented in China after Shanxi Taigang awarded contracts for their Taiyuan Blast Furnace Nos 6 and 5 in 2010 and 2019 respectively.

Established in 1975, Jiangsu Shagang Group or Shasteel is located in Zhangjiagang in Jiangsu in China. The company drew the world's attention in 2001 when it acquired Dortmund-Hörde steel mill from German ThyssenKrupp for EUR 30 million and shipped its equipment to China where it was reassembled and resumed operation. Shagang Group acquired the controlling stake in Huaigang and renamed it into Huaigang Special Steel in 2006. The company processes some 18 million tonnes of iron annually in order to roll out about 23 million tonnes of steel each year, making it one of China's top-five steel producers. Jiangsu Shagang's product line includes rebar, wire rods, slabs, and hot-rolled coils. In addition to iron and steel, Jiangsu Shagang produces stainless steel and zinc-plated steel sheets. Since 2006, the company has acquired four smaller, rival steel companies, and it now ranks as China's largest private steel producer.
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