Day: 28 September 2020

US iron ore and steel producer Cleveland-Cliffs has inked a $1.4 billion deal to acquire the bulk of ArcelorMittal USA’s assets, Kallanish reports.

After the deal closes in the fourth quarter, Cleveland-Cliffs will be the largest North American steel producer with a 17 million short tons/year capacity, based on 2019 figures. It will also be the continent’s largest iron ore pellet producer, with a capability of 28m long tons/y.

“Steelmaking is a business where production volume, operational diversification, dilution of fixed costs, and technical expertise matter above all else, and this transaction achieves all of these,” says Cleveland-Cliffs ceo Lourenco Goncalves. “ArcelorMittal is a world-class organization that we have long admired as our customer and our partner, and we know for a fact that they have taken good care of their US assets.”

Goncalves adds that the acquisition has the support of the United Steelworkers and United Auto Workers labour unions.

“The acquisition of ArcelorMittal USA amplifies our position in the discerning automotive steel marketplace, and further improves our position in important US markets such as construction, appliances, infrastructure, machinery and equipment,” he says. “It also adds to our strong legacy raw material profile and growing finishing capabilities. The transaction will enable us to become a more efficient fully-integrated steel system, with the ability to realize all of our operational and financial goals.”

ArcelorMittal notes in a separate release that the transaction does not include its Hamilton, Ontario, Dofasco facility, ArcelorMittal Mexico, or the legacy AM/NS mill in Calvert, Alabama.

“This transaction is a unique opportunity for ArcelorMittal to unlock significant value for shareholders while retaining exposure to the North American economy through our high-quality NAFTA assets alongside a participation in what will be a stronger, better integrated, US business,” says ceo Lakshmi Mittal. “I would like to thank all employees of ArcelorMittal USA for their hard work in ensuring the business maintained its reputation as a trusted, quality supplier of steels for American manufacturing. I am confident you will have a bright future with Cleveland-Cliffs.”

Ukraine’s Azovstal steelworks, part of Metinvest, has completed maintenance of the thick-plate shop at mill-3600, says the Mariupol city administration.

Investment amounted to UAH 60 million ($2.1m), Kallanish notes. The planned scope of work was completed in ten days.

The work included maintenance on the cutting line, machine rooms, as well as power equipment.

“In organizing efficient and competitive production, an important point is timely, high-quality overhaul and current repairs of equipment,” says Azovstal general director Enver Tsikitishvili. “We carry out the overhaul of mill-3600 every year to restore the equipment to the design parameters and maintain the high quality of steel products.”

The plant increased steel production in January-August (see Kallanish passim). Hot metal production amounted to 2.66 million tonnes, up by 3.6% on-year. Crude steel production was up 3.2% to 2.82mt and pig iron by 8.3% to 2.52mt.

In August alone Azovstal produced 380,000t of hot metal, 410,000t of steel and 366,000t of pig iron.

Metinvest increased consolidated crude steel production in January-June by 1% on-year to 3.96mt.

Bowim’s consolidated sales fell -6.4% on-year in the first half of 2020 to 244,303 tonnes. The firm has since the start of September observed a steel price uptrend, bringing to an end depressed prices since May.

Consolidated revenue fell -14% to PLN 583.4 million ($149m) but the firm turned to a net profit of PLN 2.7m versus a PLN 1.96m loss a year earlier thanks to lower costs.

The fall in revenue was mainly due to the impact on the market of the Covid-19 pandemic, which resulted in a reduction in demand and sales prices. Apparent steel consumption in Poland, which accounts for 99% of Bowim’s sales, fell -10% on-year in H1 to 6.25 million tonnes, Bowim says citing Polish Steel Association figures.

The second quarter saw Covid-19-related lockdowns globally, which forced steel industry firms to reduce operations and adapt to lower demand. This followed demand boosted by significant re-stocking in Q1 as distributors and buyers prepared themselves amid the uncertainty caused by the pandemic.

Polish steelmakers remain under pressure from their unfavourable energy mix, which is highly dependent on coal, Bowim points out. This coupled with EU climate policy results in high energy costs in Poland – some 19% more than in Germany and 20% more than in Czech Republic – reducing the competitiveness of the country’s mills.

Sheet comprised 89,269t of H1 sales, down -7%, with pipe sales down -6% to 47,455t and rebar deliveries down -7% to 43,044t. In terms of procurement, 28% of purchases were imports compared to 35% a year earlier, Kallanish notes.

Klöckner & Co has lifted its profit forecast for the third quarter, Kallanish learns from an ad-hoc statement from the German-based steel distribution group.

Over the course of the third quarter, the negative impact of the Covid-19 pandemic on the group’s operating business was considerably mitigated. The company attributes this to
positive digitalisation and restructuring effects, but also cites market factors. In particular, it mentions recovery in demand in its core markets of Europe and the US, especially in September, and the recently improved price environment.

Hence, contrary to the previous expectation of a pre-tax profit of €15-25 million ($17-29m) in Q3, Klöckner now expects a result of €30-40m before material special effects.

The company still expresses uncertainty about demand in Q4, but sees an overall improving price development in Europe and the USA. This has led to an increased income expectation for the full-year of €75-95m before material special effects. Klöckner had previously assumed a range of €50-70m.

Summer saw the return of optimism over the European carmaking industry, as it resumed production after months of lockdown, giving a boost to coil prices which have surged since August.

According to one observer, some mills are already suggesting a premium of €100/tonne ($116) over last year in the coming negotiations for long-term contracts. A mill’s manager says that no internal discussions on that have occurred so far. Still, he believes in increasing demand, and that hot-dip galvanized coil will fetch more than the current €600/t in January.

Some however warn it is too early to be cheerful. “I put a big question mark over the real demand of carmakers,” a German service centre manager tells Kallanish. He refers to the announcement of redundancies at suppliers like Continental, and automotive production figures turning down again.

The year-on-year drop in German car production in July was merely -6%. But in August it was a massive -35%, corresponding with the cumulative January-July on-year decline.

This is partly attributed to later holidays this year than last, but it also raises concerns. “The mills are pumping their material to the carmakers, but if VW and others step on the break again, mills will too, and with a delay,” the manager says. “If the coronavirus comes back with a vengeance, automotive can only lose.”

A Dutch buyer agrees. “The Netherlands and the UK could well see another lockdown,” he says. He finds the outlook for car production is too uncertain to provide a safe basis for large coil price hikes, especially since carmakers are reluctant to go for contract periods longer than one quarter.

Luzern (CH) – Rebranding: Die SCHMOLZ + BICKENBACH Gruppe heißt ab sofort Swiss Steel Group. Dem durch den Verwaltungsrat eingereichten Vorschlag der Umfirmierung stimmten die Teilnehmer der außerordentlichen Hauptversammlung am 21. September 2020 mit großer Mehrheit zu. Rund 98 % der Aktionäre stimmten für die vorgeschlagene Herabsetzung des Nennwerts und für die Namensänderung der Legaleinheit in die Swiss Steel Holding AG. Nach den ereignisreichen Monaten rund um die Refinanzierungs- und Restrukturierungspläne der Gruppe und den Herausforderungen, die aus der Corona-Pandemie resultieren, sind laut Konzernleitung die Weichen für eine erfolgreiche Zukunft gestellt.

Mit der Namensänderung zum 21. September 2020 schließt die Swiss Steel Group ein Stück Tradition – und beschreitet zudem hoffnungsvolle Wege in die Zukunft der Stahlentwicklung. Dies unterstreicht auch der neue Claim der Gruppe – „Gemeinsam. Eine Zukunft, die zählt“. Die Weichen für das Rebranding wurden in den vergangenen Wochen und Monaten gestellt: Mit den jüngst getroffenen Vereinbarungen finanzieller Natur konnte die Liquidität der Gruppe gesichert werden; ebenso ist das Gesamtfinanzierungskonzept in den letzten Zügen und insofern konnte auch die Unternehmensfortführung (Going Concern) sichergestellt werden. Die nun beschlossene Namensänderung betrifft unmittelbar alle Einheiten, die bislang SCHMOLZ + BICKENBACH im Namen trugen. Auch die Legaleinheit in Luzern trägt als Swiss Steel Holding AG einen neuen Namen. Die Business Units Ascometal, Deutsche Edelstahlwerke, Finkl Steel, Ugitech S.A., Steeltec und Swiss Steel behalten allesamt ihren Namen, werden jedoch ab sofort als „Unternehmen der Swiss Steel Group“ bezeichnet und jeweils unter neuem Logo auftreten.

Das Rebranding erfolgt teils aus strategischen, teils aber auch aus praktischen Gründen: Der alte Name war gerade im internationalen Umfeld stets schwierig auszusprechen. Die Familie der Gründer hat in diesem Jahr das Aktionariat verlassen, was eine Namensänderung ebenfalls sinnvoll machte. Insgesamt soll das Rebranding aber auch die Transformation der Gruppe repräsentieren und ein klares Zeichen für den Aufbruch darstellen. SCHMOLZ + BICKENBACH stand gerade in Deutschland für den Stahlgroßhandel; doch gilt die Gruppe mit ihren Business Units weltweit vor allem als Entwickler innovativer Stahllösungen für unterschiedlichste Branchen und Anwendungen.

Clemens Iller, CEO der Swiss Steel Group, resümiert: „Das Rebranding zur Swiss Steel Group ist für uns ein wichtiges Signal für den Aufbruch in eine neue, spannende und erfolgsversprechende Ära unserer Unternehmensgeschichte. Dafür braucht es eine eigenständige, einfach zu merkende, international leicht auszusprechende, glaubwürdige und entwicklungsfähige Marke, welcher unsere Kunden vertrauen können. Die Namensänderung ist zugleich eine Zäsur nach den aufreibenden Ereignissen der vergangenen Monate und Jahre, in denen uns die schwierige Marktsituation, eine notwendige Refinanzierung und zu allem Überfluss die Corona-Pandemie in diesem Jahr vor immense Herausforderungen gestellt haben. Nun können wir unter neuem Namen mit frischem Logo positiv in die Zukunft blicken.“

Der neue Internetauftritt der Gruppe ist unter www.swisssteel-group.com zu finden.

Über Swiss Steel Group

Die Swiss Steel Group (ehemals SCHMOLZ + BICKENBACH Gruppe) ist einer der führenden Anbieter individueller Lösungen im Bereich Spezialstahl-Langprodukte weltweit. Sowohl bei Werkzeugstahl als auch bei rostfreiem Langstahl zählt der Konzern zu den führenden Herstellern im globalen Markt und gehört zu den beiden größten Unternehmen in Europa für legierten und hochlegierten Edelbaustahl. Mit über 10.000 Mitarbeitern und eigenen Produktions- und Distributionsgesellschaften in über 30 Ländern auf fünf Kontinenten gewährleistet das Unternehmen die globale Betreuung und Versorgung seiner Kunden und bietet ihnen weltweit ein komplettes Portfolio aus Produktion und Sales & Services. Sie profitieren von der technologischen Expertise des Unternehmens, der weltweit konstant hohen Produktqualität sowie der detaillierten Kenntnis lokaler Märkte.

Quelle und Vorschaubild: Swiss Steel Holding AG

Autor: von Angelika Albrecht

Mit der Verleihung des NRW.INVEST AWARD würdigt NRW.INVEST herausragende Investitionen ausländischer Firmen in NRW. Den NRW.INVEST AWARD haben Wirtschafts- und Digitalminister Prof. Dr. Andreas Pinkwart und Petra Wassner, Geschäftsführerin der landeseigenen Wirtschaftsförderungsgesellschaft NRW.INVEST, am 14. September im Düsseldorfer Ständehaus an vier internationale Unternehmen verliehen.

247TailorSteel war eines der nominierten Unternehmen und gewann den NRW.INVEST AWARD 2020 für die Investition und den Bau der neuen Produktionsstätte in Hilden bei Düsseldorf. Den Preis für 247TailorSteel nahm COO Frank Gelen entgegen. Neben 247TailorSteel erhielten drei weitere Unternehmen den Preis: Der indischer IT-Experte Infosys, die aus Israel stammende OrCam sowie der französische Paketdienstleister DPD.

Alle Preisträger bereichern den Standort mit ihrer Fachexpertise und ihren Technologien, schaffen neue Arbeitsplätze und stärken die Innovationskraft Nordrhein-Westfalens. In den letzten Jahren sind Firmen wie Amazon, Picnic oder L’oreal mit diesem Award ausgezeichnet worden.

Minister Pinkwart: „Nordrhein-Westfalen hat im internationalen Standortwettbewerb eine hohe Schlagkraft und Sichtbarkeit, die wollen wir weiter vorantreiben. Unser Ziel ist es, dass sich die besten Unternehmen der Welt mit ihren deutschen oder europäischen Zentralen in unserem Bundesland ansiedeln. Firmen, die innovative Technologien entwickeln, finden bei uns die besten Rahmenbedingungen. Die vier Preisträger sind herausragende Beispiele dafür und wir möchten Ihnen mit dem NRW.INVEST AWARD auch für ihr Engagement in diesen schwierigen Zeiten danken.“

Quelle und Foto: 247TailorSteel B.V.

Autor: von Hubert Hunscheid

Tata Steel  announced it has joined forces with global steel-making standards organisation ResponsibleSteel, giving customers and consumers even more confidence the company is committed to reducing greenhouse gas emissions as well as creating jobs and protecting communities.

All of Tata Steel’s operations in 26 countries have signed up to ResponsibleSteel the industry’s first globally-present standards and certification scheme for sustainability. Tata Steel is one of the largest steelmakers in the world to become a member.

The move is a further demonstration to the company’s customers of its commitment to acting responsibly in all of its activities, from looking after its workforce to managing the environmental impact of its steelmaking operations, from respecting and supporting its local communities to greening its supply chain. Through this early membership, Tata Steel will be supporting the further development of the ResponsibleSteel standards used to guide the sector’s future actions.

Tata Steel Limited CEO and MD, Mr T V Narendran, said: “We are pleased to become a member of ResponsibleSteel, the steel sector’s first and only globally present, multi-stakeholder standard and certification initiative for sustainability. We have always emphasized our commitment to sustainable business practices and responsible supply chains. We view sustainability as integral to our business and our policies demonstrate our commitment towards sustainable development and guide us in formulating and implementing our long-term sustainability strategy.”

“The membership of ResponsibleSteel will provide an ideal platform to build on these credentials of Tata Steel and enable a responsible ecosystem for the steel industry.”
ResponsibleSteel is a not-for-profit organisation with members from every stage of the steel supply chain. It has developed an independent certification standard and programme which aims to align with a globally recognised framework used by credible sustainability standards known as the ISEAL Codes of Good Practice.

Steel is the world’s most widely used material and those who use it in the transport, automotive, infrastructure, packaging, construction, energy and white goods sectors have a growing expectation that the materials they work with are responsibly sourced and produced.

Tata Steel Europe CEO, Henrik Adam, said: “As part of the Tata Steel family, this membership gives our customers even greater confidence that they are buying their products from a company which is committed to responsible business practices.

“That is important because it is increasingly what consumers are quite rightly expecting of them.

“ResponsibleSteel also provides us with a framework through which we will achieve our mission to build the leading European steel business that is sustainable in every sense.”

The ResponsibleSteel certification framework is of direct benefit to producers already maintaining high standards and expected to bring benefits industry-wide, by encouraging those who could operate more responsibly to raise their game.

Ali Lucas, Executive Director, ResponsibleSteel, said: “We are absolutely delighted to welcome Tata Steel as a business member of ResponsibleSteel. As one of the world’s leading steel producers, Tata Steel brings huge depth, breadth and influence to help us achieve our mission and goals.”

She added: “Working within the world’s largest materials industry – responsible for more than 7% of global greenhouse gas emissions – ResponsibleSteel represents members from every stage of the steel supply chain. Businesses from multinational mining organisations, global steel producers, processers and end users, as well as civil society, are working with us to find solutions to producing steel in a responsible way. As the world’s only multi-stakeholder standard and certification initiative for the steel sector, we work by building collaborative relationships that create real impact for both the planet and society. We know that the clock is ticking in both finding and implementing solutions to the global environmental crisis. Working with Tata Steel will help us significantly accelerate our vision towards a world where only responsible low CO2 steel is produced.”             

Source: Tata Steel in Europe, Photo: Responsible Steel