Category: Latest Updates

ArcelorMittal tells Kallanish that blast furnace A at its Gijón mill in Spain has begun operations. The equipment was halted in April due to the fall in demand stemming from the coronavirus pandemic.

“The BF is operational by 26 September; the ignition process began without any problems and throughout the day, the furnace produced the first supply of pig iron,” the company says.

As reported, the restart has occurred due to the need to ensure supplies to customers during the revamping of a blast furnace at ArcelorMittal Gent in Belgium. The steelmaker will evaluate at year-end whether to keep the BF active, depending on the evolution of the market.

ArcelorMittal has also restarted blast furnace no.1 at its plant in Fos-sur-Mer, southern France as a result of the better demand (see separate story).

ArcelorMittal’s decision to sell nearly all its US integrated steelmaking operations to Cleveland-Cliffs is a repositioning of the company’s assets, not a strategic repositioning of the company’s market presence, ArcelorMittal president and CFO Aditya Mittal said Sept 28.

“I think the NAFTA market remains very important,” Mittal said in a call with industry analysts. “We have divested a big chunk of our NAFTA business, but we still retain a significant presence.”

With the closing of the deal, expected in the fourth quarter upon government approval, Cliffs will become the largest flat-rolled steel producer in the US. Cliffs agreed to purchase nearly all of ArcelorMittal’s US integrated operations for $1.4 billion in cash and shares, the two companies announced on Sept. 28 in separate releases.

The acquisition does not include ArcelorMittal’s Dofasco integrated facility in Canada, the Calvert processing facility in Alabama, a 50:50 joint venture between ArcelorMittal and Japan’s Nippon Steel, or ArcelorMittal Mexico.

Roughly half of ArcelorMittal’s NAFTA shipments will be reduced through the sale, however in terms of automotive shipments it will be slightly less than half, Mittal said.

“We remain a strong regional player with the ability to grow in Calvert,” he said.

ArcelorMittal announced plans Aug. 12 to construct a new electric arc furnace (EAF) at the Calvert facility in Alabama. Once completed the planned facility will be capable of producing 1.5 million st of/year steel slabs for the hot strip mill, with the company saying at the time it expects construction to take 24 months.

“The existing assets are growing in terms of both value-add capability as well as melt capability,” Mittal said. ” In terms of slab supplies to Calvert, we have an agreement with Cliffs, where the slab supplies that exist today between Indiana Harbor and our Calvert facility are maintained for a period of five years. So in the medium term, there’s no disruption to our slab supply into Calvert.”

In addition to retaining Calvert and the operations in Canada and Mexico, Mittal noted that ArcelorMittal will retain its research and development program and innovation centers.

The deal with Cliffs also brings to a close ArcelorMittal’s ongoing $2 billion optimization plan, Mittal said.

“Going forward, look, we’ll always review our portfolio and see the opportunities to optimize but there is no plan to announce any program in the near term,” Mittal said.

The companies have identified an estimated $150 million in cost synergies, they said in separate statements.

— Justine Coyne

En el siguiente enlace pueden acceder a la edición de septiembre de nuestra revista: INFOACERO

A continuación destacamos algunos de sus contenidos:

1. Opinión – D. José López de Diego – Junta Directiva de la UAHE. 
2. Evolución del Índice de Precios de Productos Siderúrgicos – UAHE.
3. Ayudas Pymes: Tecnologías para la transformación digital; Plan Acelera Pyme.
4. Formación UAHE: Curso Sistemas de Gestión de Almacenes – 5ª edición, Curso Gestión de Precios y Rentabilidad
5. Próximos Eventos: XVI Fórum de Productos Siderúrgicos, 22 de Octubre

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.”

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.

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.

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.

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.

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