thyssenkrupp considers layoffs and closures in Bochum: reports

Several of thyssenkrupp Steel’s operations in Bochum may be facing cuts in staff and possible closures, according to German media reports.

At a meeting with the workforce of various plants in Bochum, tk Steel’s ceo Premal Desai gave details about the cutbacks. These could affect between 800 and 1,200 jobs, and the discontinuation of electrical steel production by 2021 as well as the stoppage of the hot-rolling mill by 2024, according to reports by Reuters. Bochum also has lines for hot-dip and electrolytic galvanizing.

tk Steel’s press office would not comment on the details as reported, as they were given at a closed meeting between management and workforce. “That was only a concept presented to the staff. Once a decision is made on the actual plans, we will make them public,” a spokesman tells Kallanish upon request.

Allegedly, tk Steel want to move as many operations as possible to its Duisburg site. Media reports have suggested that this might also affect the electrical strip plant in Gelsenkirchen, and processing sites in the Siegen area.

AM InvestCo signs non-binding agreement with Ilva commissioners

ArcelorMittal has announced that AM InvestCo, its Italian subsidiary, has signed a non-binding agreement with the Italian government-appointed Ilva commissioners that forms a basis to continue negotiations on a new industrial plan for Ilva. This includes discussions on a substantial equity investment by a government-controlled entity, Kallanish learns from ArcelorMittal.

The new industrial plan would contemplate investments in green technology, including through a new company funded by public and private investors. Negotiations will continue into January. In the meantime, at the hearing today (20 December) the Ilva commissioners and AM InvestCo have requested a further postponement of the Ilva commissioners’ application for interim measures until the end of January.

The Italian government had previously rejected the industrial plan submitted by ArcelorMittal Italia. The steelmaker said in the plan that it would cut almost 4,700 jobs during the next three years. The first cuts would have been in 2020 while the remainder would have occurred in 2023 when the company proposed to idle blast furnace No. 2 and launch an EAF at the Taranto site.

German steel sales from stockpiles and inventory lower in November

Germany’s total steel sales from stockpiles dropped 5.5% month on month in November as destocking from inventories continued by members of the German trade association BDS AG towards year end, according to data published by the group Friday.

Sales declined for all products in November, and so did inventories, indicating a continuing destocking period with less sales given the time of year.

Long products sales saw the strongest sales drop, by 7.7% month on month to 277,416 mt, followed by flat products by 5.1% to 506,524 mt. Other products sales declined by 1,011 mt to 99,365 mt.

Total inventory balances declined by 83,412 mt to 2,132,743 mt, down 3.8%. Compared with November 2018, total inventory balances were 7.7% lower.

Flat steel stockpiles saw a stronger decline in inventories, by 4.5%, dropping by 60,244 mt month on month. They were 10.8% lower than November 2018, and the lowest in the past three years.

Long steel stockpiles declined to their lowest level since December 2018. Inventories fell by 18,027 mt, or 2.2% month on month. Compared to November 2018, long steel inventories were 2.9% lower.

For other products, inventories declined by 5,141 mt, or 10.2% month on month.

Lower sales from stockpiles and lower inventories are common in the month of November. In November 2018, sales from stockpiles and inventories also declined for all of the above products. December is normally a month where this destocking trend continues.

BDS members include ArcelorMittal Distribution, Jepsen Stahl GmbH and Klockner & Co Deutschland GmbH.

— Charlotte Bucchioni

Elme Metall significantly expands its presence in Lithuania

Elme Metall, a subsidiary of BLRT Grupp, is in the process of implementing multi-million dollar investment projects in Lithuania. In November, construction of the production and logistics complex in the Klaipeda Free Economic Zone (FEZ) began, and the production and logistics complex in Vilnius was acquired.

In mid-November, an agreement was signed on the construction and development of a modern production and logistics complex in the Klaipeda FEZ. The start of production is planned for the second half of 2020. The next stage of development will be the construction of an industrial complex for processing flat and profiled rolled metal products. Over the course of the project, in an area of 7.6 ha, BLRT Grupp will invest about 20 million euros.

“At the moment, all the activities of the company in the Klaipeda region are being carried out on the sites located at the port of Klaipeda. The creation of a modern production and logistics complex, as well as its development in accordance with the strategy of Elme Metall, requires additional production and storage space,” explains Georgy Grigoryan, Chairman of the Board of Elme Metall.

Also, at the end of November, Elme Metall acquired a land plot in Vilnius from Steel Trade with an area of 27,000 m2, which houses a production and logistics complex along with a steel framework and service centre with an area of 11,000 m2.

“Investing in the acquisition and construction of a new complex in Vilnius is another step in implementing the Elme Metall development strategy. Thanks to the expansion of production capacities and the proximity of major highways, we will be able to create more favourable conditions for the development of retail and wholesale trade and increase the overall level of customer service. This will allow us to significantly strengthen our position in the Baltic and Lithuanian markets,” says Georgi Grigoryan.

Elme Metall has been operating in the Lithuanian market since 2004. Today, the company has at its disposal a developed production and logistics infrastructure, consisting of four affiliated branches and three service centres equipped with high-tech machinery.

Elme Metall is engaged in sale of rolled steel and in processing of metal products, holding a leading position in this industry in the Baltic Sea countries. Elme Metall today is an international enterprise with more than 500 employees and companies in Estonia, Latvia, Lithuania, Finland, Poland and Russia.

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