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Forgerossi & Siderforge Agree to Merge (Italian)

29-07-2013

Category : Strategy

Forgerossi & Siderforge

Forgerossi President Luciano Giacomelli with  Siderforge President Ginapetro Canale agree to merge from January 2014 (Credit Photo @ Gionale Di Vicenza)

(US)

Italian Forgemasters continue to consolidate their activities By Mergers & Acquisitions operations. One year after   the creation of the M&M forgings a JV between 2 Forgemasters:  Mamé & Monchieri, 2 others Italian forging companies  Forgerossi & Siderforge agree to merge from January 2014.

  The new group

  • The name of the new group: Siderforgerossi Group
  • The Turnover of the new group will be more than 200 million euro.
  • The merger operation was conducted with the support of Deloitte Consulting.
  • The industrial plan will be presented from October, 15, 2013.
  • The new group will be start from January 2014.
  • The shares of the new group will be  held by 5 persons.
  • The new group  employees will  be  500 in Italy and  600 abroad

Forgerossi :

  • President : Luciano Giacomelli
  • Turnover 2013 :  90 Million Euro
  • Founded in  1908
  • Products  : Carbon Steels, Special Steels , Stainless Steels
  • Dimensions  up to   2400 mm
  • R&D : collaboration with  Vicenza  University  to develop high performances alloys  

Siderforge :

  • President : Ginapetro Canale
  • Turnover 2013 :  120  Millions Euro
  • Founded in 1981
  • Production : 75.000 tons/year on  2 facilities
  • Acquisition :  Siderforge acquire  in March, 2013 the  majority stakes of the Indian  AMW-MGM
  • Products : Carbon Steels , Special Steels, Stainless Steels,  Superallloys

AA 

(Italian)

Siderforgerossi Nasce la newco della metallurgia

  • L’OPERAZIONE. Il progetto presentato ieri a Palazzo Bonin Longare.
  • La nuova società fonde la Forgerossi di Arsiero e Metallurgica Siderforge di Cogollo del Cengio

Quante volte, in questi mesi di crisi che non accenna a mollare la presa sul nostro tessuto economico-industriale, si è continuato a ripetere come l’unica via percorribile per cominciare a intravedere la ripresa fosse l’aggregazione tra imprese dello stesso settore e magari persino concorrenti? Ora a Vicenza dalle parole si è passati ai fatti come dimostra il progetto di aggregazione concluso ieri tra la Forgerossi di Arsiero e la Metallurgica Siderforge di Cogollo del Cengio. Due eccellenze vicentine nel comparto metallurgico a livello Continue Reading

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Philippe Clergue : ” On veut conforter le statut d’AREVA leader mondial”

22-07-2013

Category : Strategy

Areva Creusot

Philippe Clergue, directeur exécutif  de la Business Unit  Equipement Chez AREVA (Credit Photo @ Creusot-Infos)

A combien désormais se montent les investissements d’AREVA au Creusot ?

PHILIPPE CLERGUE : «Nous avons dépassé les 150 millions d’euros d’investissements sur les dernières années. Dont 40 millions pour l’installation de la nouvelle presse dans les ateliers de Creusot Forge».

Qu’attendez-vous de ce nouvel investissement ?

«Il s’agissait d’assurer et de conforter le socle de la structure Creusot Forge dans le schéma d’AREVA. Il s’agit pour nous d’assurer, en France, nos productions de pièces forgées pour les marchés les plus stratégiques. On avait besoin de moderniser. Cela se fait au travers de la presse de 9000 tonnes. Mais aussi d’un investissement dans un manipulateur qui offrira plus de performance, plus d’efficacité, plus de précision. Cela doit nous permettre de conforter notre statut de référent et de numéro un mondial».

Quels nouveaux marchés visez-vous ?

«Parmi les perspectives de développement, on trouve les conteneurs de stockage pour les combustibles usés. C’est une Continue Reading

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Titanium Fills Vital Role for Boeing and Russia (US)

08-07-2013

Category : Strategy

VSMPO titanium boeing

Titanium rolls at the Avisma foundry in Verkhnaya Salda, Russia. The plant was once a secret producer of nuclear missile parts. (Credit Photo @ Olga Kravets for The New York Times)

VERKHNAYA SALDA, Russia — Boeing needs to make its airliners lighter, and for that it needs titanium. And for that ightweight and strong metal, the American aircraft maker comes to this small city in the Ural Mountains. At the Avisma titanium foundry, a once-secret factory that made nuclear missile parts during the cold war, titanium ribs for Boeing airplanes are stacked in piles like lumber. In an annex, a Boeing and Avisma joint venture called Ural Boeing  Manufacturing grinds forged parts destined for America. A third of all Boeing jet landing gear assemblies are made with titanium beams from Russia. The Russians make titanium parts that are unseen but no less important on planes like the new 787 Dreamliner and the workaday commuter airplane, the 737. Boeing buys so much titanium from Russia — the airplane maker plans $18 billion in purchases over the coming decades — that it now researches new alloys with the Russians. In Moscow, a thousand miles to the west, a team of 1,400 aerospace engineers designs airframes and wings, in part using Russian titanium components. That titanium is taking off is a bright spot for Russia’s struggling aerospace industry. It is as welcome for Boeing. With the new Dreamliner airplane, Boeing took a leap into new technologies and a wider global network of suppliers. The strategy went spectacularly astray with a new lithium-ion battery made in Japan. The risk of battery fires forced Boeing to ground the entire fleet for months. But the Russian titanium strategy is paying off. Reliance on Russian titanium, thought it comes with geopolitical risks given tensions between the United States and Russia, is making the lightweight metal more economical, so Boeing uses more. Reducing the weight of planes makes them more economical to operate and thus more attractive to the airlines. The Avisma factory, deep in a pine forest, makes 35 percent of all titanium for Boeing civilian airplanes. “There are parts that only we make. Nobody else,” Mikhail V. Voevodin, the factory director and a part owner, said. Titanium parts are devilishly difficult to make. In the foundry’s forge, gigantic circular furnaces rise along the walls of the main smelting hall, like the pipes of some volcanic organ in a cathedral from hell, six stories high. Electricity melts the metal in these vacuum tubes. Gigantic struts, poles Continue Reading

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Strategic repositioning by the SCHMOLZ+BICKENBACH (US)

17-06-2013

Category : Strategy

NONN S-C

Johannes Nonn, CEO of SCHMOLZ + BICKENBACH AG (Credit Photo @ S+C)

  •      Strengthening production as a core competence
  •  Divisions to be controlled by new management holding company
  •  Measures defined to improve EBITDA by around EUR 230 million
  •  Review of strategic options for Distribution Germany

As part of a strategy review supported by Roland Berger Strategy Consultants, the SCHMOLZ+ BICKENBACH Group has decided to focus its future business model more strongly on its production units (DEW, Finkl, Sorel, Ugitech, Swiss Steel, Steeltec and Blankstahl) in order to strengthen its leading position in the core tool steel, corrosion, acid and heat-resistant steels and engineering steel markets. Production is supported by the Sales & Services unit, which underpins this strategy with a strong focus on selling the company’s own products. Sales & Services brings together under central management the activities that were previously located in the Germany, Europe and International Distribution units. The group will in future be managed as an integrated entity by a management holding company in order to realize synergies between the units. The aim of the SCHMOLZ+BICKENBACH Group’s repositioning is to bring the company’s core production competencies further to the fore, and to exploit the advantages of an integrated business model in a more targeted fashion. In particular, the company wants to realize synergies in sales, market/product segmentation, research & development and knowledge transfer. This focus on the new strategy will also involve an evaluation of the SCHMOLZ+BICKENBACH Group’s various activities. From the current perspective, the strategic options for Distribution Germany need further precision and examination. In order to improve operational earnings power and the capital structure, the new Executive Board has drawn up a comprehensive growth and results improvement programme that covers all areas of the business. The total impact on the operating result (EBITDA) comes to around EUR 230 Continue Reading

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Vallourec inaugurates new plant in China for the manufacturing of nuclear power plant tubes (US)

10-06-2013

Category : Strategy

Vallourec China

Key dates of Vallourec history in China

  • 1904 :  First tube delivered to the water network of Shanghai city by Mannesmann
  • 1954 : First contract for boiler tubes and pipes
  • 1997 : First plant in Changzhou (Changzhou Valinox Great Wall Welded Tube
  • 2006 : Creation of V & M Changzhou (finishing facility, power generation)
  • 2007 : Creation of VAM Changzhou (threading facility, oil & gas)
  •  2010 : Decision to extend V & M Changzhou capacity (production of power generation tubes)
  • 2010 : Acquisition of 19.5% of Tianda Oil Pipe, a Chinese pipe
  • manufacturer for Oil & Gas applications
  • 2010: New investment project of Valinox Nucléaire in Nansha: facility for steam generator tubes dedicated to the Chinese nuclear power industry
  • 2011  First stone laid of Valinox Nucléaire in Nansha 
  • 2012 :  Extension of V & M Changzhou (production and finishing of power generation tubes)
  • 2013 : Inauguration of Valinox Nucléaire new plant in Nansha

Guangzhou, China and Boulogne-Billancourt, 6 June 2013 -Vallourec, world leader in premium tubular.  solutions, today announces the inauguration of its plant dedicated to the manufacturing of tubes for steam.  generators located in Nansha, a district of Guangzhou, in southeastern China. This new plant of Valinox.  Nucléaire, a Vallourec subsidiary specializing in the production of tubes for nuclear power plants, represents.  an investment of €55 million and will eventually employ 200 people. The commissioning of the plant is planned.  for the third quarter of 2013, enabling Vallourec to accompany the large rise in the number of Chinese nuclear.  power plants, whose capacity is expected to increase from 15 GW in 2013 to 58 GW in operation in 2020, with  an additional 25 GW under construction at that date.  In the presence of Ding Hongdu, permanent member of PCC’s committee for Guangzhou city and Bernard Bigot, General Administrator of the French Atomic Energy Commission (CEA), Philippe Crouzet, Chairman of the Vallourec Management Board, said at the inauguration ceremony:  “After having invested in new factories in China in order to serve the premium local markets for oil and gas and conventional power generation, we are pleased to be continuing our expansion here in the area of nuclear energy. Indeed, with  this new facility, we will be able to locally support the extensive development program of Chinese nuclear  power. Vallourec is proud to serve this ambition with its technological expertise in the area of tubes for steam  generators suited to the latest generation of nuclear power plants.” Complementing the 2011 extension of Valinox Nucléaire’s French plant in Montbard, the new Nansha facility  Continue Reading

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India want to develop it’s future superalloys needs (US)

27-05-2013

Category : Strategy

Vikram

VSSC  at Thiruvananthapuram is the major center of ISRO, where the design and        development activities of satellite launch vehicles and sounding rockets are        carried out and made ready for launch operations. The centre pursues research       launch vehicle design, propellants, solid propulsion technology, aerodynamics, aero structural  and aero thermal aspects, avionics, polymers and composites, guidance, control, and simulation, computer and information, mechanical engineering, aerospace mechanisms, vehicle integration and testing, space ordnance, chemicals and  materials.

Research and development in the area of high temperature materials is very much relevant today with the nation embarking upon more ambitious programmes in areas including space technology and the aerospace industry, Vikram Sarabhai Space Centre (VSSC) director S Ramakrishnan said on Monday.  Ramakrishnan was speaking after inaugurating the ‘Prof Brahm Prakash Birth Centenary Workshop on High Temperature Materials and Hot Structures’ which opened at Kovalam here. The event is being organised by the Indian Institute of Metals (IIM), Thiruvananthapuram chapter.  As far as the Indian Space Research Organisation (ISRO) is concerned, the development of super alloys and metals that can withstand extremely high temperatures was critical for upcoming ISRO projects, including the development of the Reusable Launch Vehicle (RLV) technology, he said. VSSC director (research and development), who presided over the function, said that more industries should become involved in the area of advanced Continue Reading

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Tata Steel says no assets up for sale in Europe (US)

27-05-2013

Category : Strategy

Tata Steel   koushik

(Reuters) – Tata Steel Ltd(TISC.NS) said it expected to take no further charges in Europe and has put no European assets up for sale, following a $1.6 billion writedown for the region in the past financial year due to weak demand. The company reported its third straight quarterly loss on Thursday, which could lead to pressure for further cost cuts and closures, especially in its older plants in Britain. Two-thirds of Tata Steel’s 27 million tonne annual capacity is in Europe, where demand has fallen by almost a third since 2007. Various media reports have said it is exploring a sale of some of the assets. “At this time, we have no business which is on the table,” Chief Financial Officer Koushik Chatterjee told reporters.

 ”At this time, we have no business which is on the table,”

Chief Financial Officer Koushik Chatterjee

“But if there are opportunities or our strategy is different, it can happen.” “Severely depressed” conditions in Europe are expected to continue over the short to medium term, the company said in an earlier statement. Its January-March net loss was 65.29 billion rupees, compared with a 4.33 billion rupee profit a year earlier. Net sales rose about 1 percent to 341.8 billion rupees for the fourth quarter. Analysts had expected profit of 3.64 billion rupees on sales of Continue Reading

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Le souci de rester à la pointe de la technologie

27-05-2013

Category : Strategy

Blessing Saarstahl

Karlheinz Blessing, président du directoire de Saarstahl et de Dillinger Hütte : « Nos gains sont réinvestis dans le savoir-faire ». (Credit @ Photo Dillinger Hütte )

Karlheinz Blessing, président du directoire de Saarstahl et Dillinger Hütte, explique la réussite de l’acier sarrois. Les sociétés continuent d’investir pour conserver leur leadership.

Que fait la sidérurgie sarroise pour résister à la crise ?

Karlheinz BLESSING, président du directoire Saarstahl et Dillinger Hütte : « Les deux grandes sociétés sidérurgiques sarroises, Saarstahl et Dillinger Hütte, poursuivent depuis de nombreuses années une stratégie qui est orientée vers la production de produits de haute qualité dans “un segment premium”, donc vers des produits répondant à des exigences de plus en plus complexes. Le but stratégique est de se positionner ainsi comme leaders technologiques dans cette catégorie d’aciers. »

Est-ce que vous continuez à investir ?

« A Dillingen, nous sommes en train d’achever la nouvelle coulée continue CC6. Elle correspond à un investissement total de 300 millions d’euros. Les moyens financiers nécessaires pour faire ces investissements proviennent des bénéfices et gains réalisés par nos deux sociétés ces dernières années. La structure de l’actionnariat de la sidérurgie sarroise est spécifique. Elle a, à sa tête, une fondation industrielle privée, Montan-Stiftung-Saar. Celle-ci a pour principe et objectif central de par ses statuts de promouvoir et de renforcer la sidérurgie sarroise, et d’assurer les emplois en Sarre. Les gains réalisés par les sociétés sont réinvestis dans les installations, la technique et le savoir-faire afin de rester à la pointe de la technologie. Mais, c’est valable pour Saarstahl comme pour Dillinger Hütte, nous ne sommes pas invulnérables et nous devons répondre quotidiennement aux challenges et défis que nous posent les marchés internationaux. Ils nous obligent à continuer à évoluer et à nous développer en permanence. Ce qui signifie de fournir un effort constant en termes de qualité et de service aux clients, afin de répondre à leurs exigences actuelles et futures. »

Quel regard portez-vous sur les problèmes de la sidérurgie lorraine, notamment à Florange ?

« Je pense naturellement au fait que le site des hauts fourneaux de Florange représente une longue tradition qui s’achève maintenant. Plus généralement, il faut remarquer que la sidérurgie en Europe doit faire face à une situation de plus en plus difficile. Le marché de l’acier connaît une demande en nette baisse et subit une concurrence mondiale qui s’accentue. En même temps, elle est exposée à une augmentation des coûts et à de mesures politiques dirigistes. Les charges liées au négoce des émissions de CO² et les coûts élevés de l’énergie exercent une forte pression sur les sites sidérurgiques européens, menaçant ainsi leur compétitivité. »

La politique énergétique en Allemagne vous inquiète sur le long terme. Pourquoi ?

« Certes, nous soutenons la protection de l’environnement et la transition énergétique qui est en cours en Allemagne. Cela dit, il faut qu’on nous donne comme entrepreneurs les moyens d’investir et d’agir à long terme et ne pas nous confronter sans cesse à une accumulation croissante de charges liées à l’énergie. Les coûts énergétiques en Allemagne pour l’électricité sont trois fois plus élevés que ceux de nos concurrents, aux États-Unis par exemple. L’industrie allemande, dont la sidérurgie a une importance de premier ordre, doit être préservée. C’est grâce à son industrie que l’Allemagne a bien surmonté la crise. »

 

Source : Le Républicain Lorrain –  Bernard KRATZ

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Outokumpu conducts a strategic review of its VDM high performance alloys business

21-05-2013

Category : Strategy

Mika Seitovirta, Outokumpu CEO

VDM serves a wide range of customers in the aerospace, energy, chemical and other industries. In 2012, VDM had sales of EUR 1.3 billion and approximately 2.000 employees.  During the review, the VDM unit will continue to operate within Outokumpu. The strategic review is expected to be finalized before the end of the year.  Mika Seitovirta, Outokumpu CEO (Credit Photo @ Fs.fi)

May 13, 2013 -Outokumpu has started a strategic review of its high performance alloys or VDM business unit. During this review, Outokumpu will evaluate strategic options for VDM and consider how best to drive continued growth and profitability for the business, within or outside of Outokumpu.  Says Outokumpu CEO Mika Seitovirta: “Given the challenging economic and market environment, we want to investigate strategic options for the VDM business unit with the aim of improving our profitability and strengthening our balance sheet while ensuring the realization of at least EUR 200 million of synergy savings enabled by the Inoxum acquisition.”

“Given the challenging economic and market environment, we want to investigate strategic options for the VDM business unit with the aim of improving our profitability and strengthening our balance sheet while ensuring the realization of at least EUR 200 million of synergy savings enabled by the Inoxum acquisition.”

Mika Seitovirta, Outokumpu CEO

Outokumpu acquired VDM as part of Inoxum in 2012. VDM is a global leader in the market for corrosion and heat resistant high-performance materials, such as nickel, titanium and zirconium alloys. VDM serves a wide range of customers in the aerospace, energy, chemical Continue Reading

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Timken announces the completion of $85 million Strategic investment (US)

23-04-2013

Category : Strategy

Timken
 
The in-line forge press at the Faircrest Steel Plant delivers 6,000 psi of force to compress heated ingots in to shape for large-bar rolling. The open-die press helps the steelmaker improve the “center soundness” of its SBQ steel. (Credit Photo @ The Timken Company)
 
Specialty steelmaker brings in-line forge press, intermediate finishing line, and heat-treat investments on line
 
  • The Timken Company announced the completion of three previously announced capital investment projects totaling US$85 million. The Steel business investments include an open-die in-line forge press at the Faircrest Steel Plant in Canton, Ohio, and an intermediate finishing line and a second induction thermal treatment line at the Gambrinus Steel Plant, also in Canton.  
  • The 3,300-ton forge press offers Timken and its customers sound-center engineered steel bars that can unlock new market opportunities and operating efficiencies. The forge press uses an innovative large-bar forged-rolled process, which Timken developed and installed to enhance center soundness of a larger cross-section of Timken® special bar quality steel. Combined with the company’s recent investment in an ultrasonic test large-bar inspection line, the new forging capabilities reinforce the company’s position as a premier provider of sound-center large bars of up to 16 inches in diameter.

After nearly two years of capital investment projected to top $500 million, the rewards are beginning to show for The Timken Company. The specialty steelmaker and producer of friction management and power transmission devices has brought on-line three projects intended to expand capacity and improve product quality for important markets, in particular oil-and-gas and industrial applications. Timken v.p.-steel manufacturing Tom Moline said the long list of projects, some still in progress, support an overall effort to increase steel output for the Faircrest Steel plant in Canton, OH, which shipped 1 million tons in 2012. He indicated the new capacity and production efficiencies would add about 15% to Faircrest’s potential output. The most notable new installation is a 3,300-ton forge press line. The automated open-die press is the only operation of its kind in North America, conceived as a sizing stage in Timken’s bar rolling process. It was designed by Mitsubishi Nagasaki Continue Reading

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SAIL inks MoU for titanium sponge unit (US)

08-04-2013

Category : Strategy

SAIL titanium

Chief Minister Oommen Chandy and Industries Minister P.K. Kunhalikutty with SAIL chairman C.S .Verma at a function to sign an MoU for a titanium sponge production unit in Thiruvananthapuram on Thursday. (Credit Photo @  S. Mahinsha )

The proposed titanium sponge production unit will ensure faster economic growth of the State and overall development of the region, Chief Minister Oommen Chandy has said. Inaugurating a function held here on Thursday for signing a Memorandum of Understanding between the Steel Authority of India (SAIL) and the Kerala State Industrial Development Corporation (KSIDC) and Kerala Minerals and Metals Limited (KMML) for setting up a titanium sponge production unit with an investment of Rs.2,500 crore, Mr. Chandy said this was one of the dream projects of the State. The State was unable to exploit its mineral resources of world-class standards. This was a failure of the State. The State was manufacturing titanium sponge only in a limited quantity, but once the project with SAIL materialised, it would pave the way for a major development in this regard. The steps for setting up the unit were initiated once the government assumed office and it became more clear with the conduct of the Emerging Kerala summit in Kochi. Minister for Industries P.K. Kunhalikuty said that more investments would be brought to the State by joining hands with the Central PSUs. This would create more job opportunities too, he said. The project has been planned in a phased manner. In the first phase, setting up of a titanium sponge and metal Continue Reading
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Voestalpine strengthens it’s position in the Special Steel Market (US)

25-03-2013

Category : Strategy

EIffel
 
Mitarbeiter von Eifeler, fotografiert beim 25. Geburtstag der Firma im Jahr 2008. Das Unternehmen ist auf Beschichtungen spezialisiert. (Credit Photo @ Matzerath, Ralph )

 (US)

 The global steelmaking, technology, and industrial goods Group voestalpine is continuing to expand its leadership in the global Special Steel segment. The Special Steel Division, headed by Franz Rotter, has acquired a majority stake in the Düsseldorf-based Eifeler Group, with annual revenues of around EUR 50 million and 330 employees. The division has also acquired two companies in China, Rieckermann Steeltech in Shanghai, and P.M.Technology in Shenzehn, with around 100 employees. The Special Steel Division’s revenue target is EUR 5 billion by 2020. It was only at the end of December that voestalpine had defined its ambitious goals up to 2020. Important measures are already being undertaken across all four divisions to promote internationalization and acquire new companies. A start has been made by voestalpine’s Special Steel Division (formerly Böhler Uddeholm), currently active at 60 sites in 50 countries, which is continuing to strengthen its international presence by taking over nine companies belonging to the German coating specialist Eifeler, as well as two production and servicing sites belonging to the Rieckermann group in China. With this move the Special Steel Division (including tool steel, high-speed steel, special steels, alloys, and special forged components for the aviation industry, heavy vehicle construction, and the energy sector), with its current staff of 12,400 employees, has laid the foundation for its target of increasing revenue from EUR 3 billion to over EUR 5 billion by 2020. The division is intensively pursuing global growth and is focusing on the promising mobility and energy markets.

Greater added value brings growth in the mobility and energy segments

These acquisitions enable us to achieve significant growth of our market share for premium products and sophisticated special materials in the mobility sector

Franz Rotter,  head of the voestalpine  Special Steel Division

“This will make it possible for us to not only increase and improve distribution but to significantly extend the customer-specific value chain in the high-end segment of the energy and mobility sectors, the industries where we see enormous growth,” said Rotter. The Group intends to increase its processing activities to around 75%, compared to the conventional steel sector, and this development is being realized by the division headed by Rotter. “Up to 2020, we will spare no efforts in continuing to extend our leadership position in terms of market, technology, quality, and results,” stressed Rotter.

High quality coating technologies – dramatic expansion of the service sector

The Special Steel Division has acquired nine companies from the Düsseldorf-based Eifeler Continue Reading

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We are not a steel company,” says ThyssenKrupp’s CEO (US)

25-02-2013

Category : Strategy

Heinrich Hiesinger

German giant lightens reliance on heavy metal and goes techno

While most steel companies seek to benefit from China’s large-scale infrastructure construction projects, one company has decided to capitalize on the country’s development by reducing its dependence on steelmaking. “We are not a steel company,” says Heinrich Hiesinger, CEO of Thyssen- Krupp AG, an industrial giant with a long history of working in China. I want people to consider us as a technology company rather than a steel producer.”

“We are not a steel company,”  I want people to consider us as a technology company rather than a steel producer.”

Heinrich Hiesinger, CEO of Thyssen- Krupp AG

Although the company has adopted new ways to expand its businesses in more technological areas, the name Thyssen- Krupp is still associated in China with the German arms manufacturer of the 19th century. But after developing into an international steel maker over the past century, the company is now reorganizing itself into a technology-driven group. And China plays a big role in that transformation. In October ThyssenKrupp announced it would sell Tailored Blanks, one of its automotive-steel manufacturing units, to Wuhan Iron and Steel Group Co, the fourth largest steel maker in China. Wuhan Steel was planning to expand by moving from the upstream production of crude steel to the more refined downstream manufacturing sectors to increase its high-end products share. Tailored Blanks makes lightweight steel sheets for the automotive industry. The company accounts for 40 percent of the global market for such products. Its annual sales in 2011 were 700 million euros, the company says. “It’s a very clear path that we are following, to become a technology-based corporation and an industrial solution provider,” Hiesinger told China Daily during an innovation and technology event near the company’s headquarters in Duesseldorf. At the event, up to 4,000 ThyssenKrupp engineers demonstrated the company’s work in science and technology to visitors. Asked the reason for his company’s transition from heavy to light and less steel, Hiesinger says huge overcapacity in the global steel industry makes it very difficult to be profitable in the business. “Ten years ago the steel industry started to see the overcapacity problem, so we changed to the stainless steel business, which brought us profits in the following years. However, the same problem now is happening to the stainless steel industry too, including in the Chinese market.”

“Ten years ago the steel industry started to see the overcapacity problem, so we changed to the stainless steel business, which brought us profits in the following years. However, the same problem now is happening to the stainless steel industry too, including in the Chinese market.”

Heinrich Hiesinger, CEO of Thyssen- Krupp AG

In late January 2012, ThyssenKrupp announced the sale of Inoxum, the company’s stainless steel business, to Outokumpu Oyj, a Finnish stainless steel producer. The transaction agreement valued Inoxum at about 2.7 billion euros, German media reports said. “By selling the stainless steel business, we can spare more resources to other sectors with good potential,” Hiesinger says. “The investment should go to sectors which can create bigger value. The growth rate, profitability and capital efficiency are three main standards for our business assessment.”

“The investment should go to sectors which can create bigger value. The growth rate, profitability and capital efficiency are three main standards for our business assessment.”

Heinrich Hiesinger, CEO of Thyssen- Krupp AG

ThyssenKrupp is now considering selling its other steel factories in Brazil and the US, and is in talks with more than 10 companies. The company has decided to maintain the scale of its steel business in Europe because it is still profitable, especially in high-end products such as automotive-steel plates. “Our management philosophy is to Continue Reading

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China’s steelmaking giants seek new strategies after huge slump (US)

25-02-2013

Category : Strategy

China Steel industry

Looking for relief from an industry downturn, Chinese steel makers have become more active in international markets. (Credit Photo@  DtNews)

Chinese steel makers are anxiously pursuing ways to reinforce their dominant global position in the industry after a year in which their profits dived and European tariffs on their products and raw material prices rose sharply. Total profits of 1.58 billion yuan ($254 million; 190 million euros) recorded by China’s steel giants last year was down a thumping 98.2 percent from 2011, the China Iron and Steel Association says. The association’s vice-chairman, Shen Wenrong, says the industry was going through “the toughest period since we were founded in 1975″. Most steel companies in China reported decline in profits or losses mainly due to falling demand and the rise in raw material costs. Anshan Iron and Steel Group Corporation, one of the country’s top steel producers, reported a 1.19 billion yuan loss in the third quarter, a daily loss of more than 13 million yuan. In the corresponding period in 2011, the company had a net profit of 239 million yuan. CISA says the major large and medium-scale steel companies in China reported total losses of 5.53 billion yuan in the first three quarters, the worst since 2000. China’s steel industry now has problems with overcapacity and a limited range in mostly upstream, crude-steel products as required by the country’s continuing infrastructure construction, and there is a shortage of advanced products with high added-value, says Xu Xiangchun, senior analyst at Mysteel.com, a Shanghai-based industrial information provider. Also, because of rising iron ore prices in recent years, many Chinese steel companies decided to expand their business in mining operations overseas, aiming to improve competitiveness and save on raw material costs. But this has not been as effective as hoped. So China’s steel producers are collectively showing their mettle through consolidation and other new strategies designed to maintain, if not reclaim their edge. Kim Yong-min, president of Zhangjiagang Pohang Stainless Steel Co Ltd – a joint venture set up in 1999 by the Korean company POSCO and Jiangsu Shagang Group, China’s largest private steel maker – says it used to be that whatever they produced would sell because of the huge domestic demand. “But now the situation has changed and the producers have taken measures, such as moving up the value chain to combat the bleak market.” As well as trying to expand the overseas market, Chinese steel makers are focusing more on producing steel products for use in vehicles and on developing steel-related industries. CISA secretary-general Zhang Changfu says at an annual industry conference last month in Beijing that steel prices were low for much of last year due to sluggish economic growth. He predicted raw material costs would Continue Reading

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Bharat Forge, Elbit establish JV for artillery systems in India (US)

11-02-2013

Category : Strategy

Elbit Systems

Bezhalel (Butzi) Machlis (50), currently an Executive Vice President of Elbit Systems, joined the Company in 1991. He has served in several managerial positions relating to Elbit Systems’ land and C4I  activities, and for the last eight years has led the Elbit Systems Land and C4I Division as its General Manager. During his tenure, Elbit Systems’ land and C4I operations have grown significantly and recorded numerous achievements both in Israel and abroad. (Credit Photo @ Aviation Pros)

The Strategic Cooperation between Elbit Systems and Bharat Forge and specifically the JVC will address Indian defence requirements .  

Bharat Forge Limited, the flagship company, of the Kalyani Group, and Elbit Systems Land and C4I Ltd., a wholly-owned subsidiary of Elbit Systems Ltd.,today announced a strategic co-operation in India through the establishment of a new Joint Venture Company (JVC), to address the Indian Ministry of Defence and other potential Indian government customers’ requirements for the most advanced artillery and mortars systems solutions-Subject to requisite government & regulatory approvals, the JVC will offer solutions in the Artillery Guns & Mortars segment based on Elbit Systems’ cutting edge technologically advanced products operationally used worldwide, such as the ATHOS 155/52 Towed Gun System, the ATMOS 155/52 Mounted Gun System and the upgraded 130 mm M46 Gun to a 155/45 Gun (KARAN).

“We are proud to combine Bharat Forge’s systems integration and manufacturing expertise with Elbit Systems’ proven technology. We believe that offering innovative solutions, based on our combined vast operational experience and technological capabilities will position the JVC as a leading supplier to the Indian Ministry of Defence and other potential Indian government customers

Bezhalel (Butzi) Machlis, Elbit Systems’ Executive Vice President

The JVC will also role out a range of futuristic products like the Advanced Indian Gun System. The JVC will bring together Elbit Systems’ cutting-edge technology and system Continue Reading

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PCC is considering to invest 5$ billion in M&A operations by 2016 (US)

04-02-2013

Category : Strategy

Mark Donegan

Mark Donegan told financial analysts that the PCC, best known as a producer of  investment castings, forgings and aircraft fasteners, expects to have about $5 billion in available cash to “deploy” through March 2016, with mergers and  acquisitions getting top priority. (Credit Photo @  trialx)

Focus :

  • Mergers and  Acquisitions  is PCC  top priority
  • PCC expects $5 billion available cash for M&A operations by march 2016
  • PCC seems to focus  M&A Strategy on aerostructures  market

This week Mark Donegan, chairman and chief executive officer of Precision Castparts Corp. will discuss current business conditions at the 34th Cowen Aerospace/Defense Conference in New York City on Thursday, February 7, 2013, at 8:55am ET.  read more

AA

LOS ANGELES — Precision Castparts Corp. (PCC), fresh off its $2.9-million takeover of Titanium Metals Corp. (Timet), has turned its eye back to  aerostructures acquisitions following a profitable fiscal third quarter. PCC chairman and chief executive officer Mark Donegan told financial analysts  this week that the Portland, Ore.-based company, best known as a producer of  investment castings, forgings and aircraft fasteners, expects to have about $5 billion in available cash to “deploy” through March 2016, with mergers and  acquisitions getting top priority.  PCC acquired Dallas-based titanium producer Timet, which is now part of Continue Reading

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Kobe Steel President Pledges to Restore Profit by Cutting Costs (US)

04-02-2013

Category : Strategy

KOBE STEEL Sato

TOKYO, February 1, 2013 – Kobe Steel, Ltd. announces that its board of directors decided today to appoint President and CEO Hiroshi Sato as Chairman and CEO of the company effective April 1, 2013. At the same time, Senior Managing Director Hiroya Kawasaki will be appointed President and COO.

February 01, 2013  – Japan’s third- biggest steelmaker, will return to profit in the next fiscal year by cutting costs, incoming President Hiroya Kawasaki said. “We are in a very tough business environment, which reflects the company’s earnings released today,” Kawasaki said today at a press conference in Tokyo, where he was appointed to succeed Hiroshi Sato.

“We are in a very tough business environment, which reflects the company’s earnings released today,”

Hiroya Kawasaki will be appointed President and COO

Kawasaki, 58, pledged to scale back labor expenses, including executive compensation, as well as procurement costs. The company, based in Kobe, swung to a pretax loss from operations last quarter, and kept its October estimate of a 25 billion-yen ($271 million) annual loss. It scrapped a full-year dividend. A slowing global economy and a supply glut caused by capacity expansion in China and South Korea has hurt earnings at Asian steelmakers. Posco, South Korea’s biggest steelmaker, said this week an “unprecedented slump” in the industry cut prices and hit profits last year.  Kobe Steel may consider alliances with other companies in steel and other operations to fend off increased competition, Kawasaki said.

Kobe Steel may consider alliances with other companies in steel and other operations to fend off increased competition

Hiroya Kawasaki will be appointed President and COO

Nippon Steel Corp. (5401) combined with Sumitomo Metal Industries Ltd. last year to form Nippon Steel & Sumitomo Metal Corp. The merger, which created the second-biggest Continue Reading

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Alcoa Fastening Systems Enters Strategic Partnership with COMAC (US)

30-01-2013

Category : Strategy

Alcoa COMAC

Weiguo Shen (L), COMAC GM of Technology and Quality & President of Shanghai Aircraft Manufacturing Company with Vitaliy Rusakov, AFS President, at the technology and commercial cooperation agreement signing ceremony at COMAC headquarters in Shanghai, China on January 11, 2013. Also present at the ceremony (L-R): Kecen Han, SADRI VP, Chief Design Engineer for C919; Ms. Qixia Tang, COMAC Deputy General Legal Counsel; Wenfeng Yuan, COMAC Deputy General Manager of Program Management; Zhihui Tao, COMAC VP International Cooperation Program Management; Mr. Jianzhong Shi, COMAC VP; Craig Brown, VP of Global Aerospace Customers and Markets; Bill Miley, VP and GM of AFS China Operations; Cyril Blavet, Director of Marketing and Sales of Europe/Asia and GM of AFS Shanghai; Hai-Tao Wang, Manager of Product Engineering and Quality of AFS Suzhou/Shanghai and AFS Liaison Officer of the AFS-COMAC cooperation program; and Kevin Peng, Marketing Manager of AFS Aerospace Products in China. (Credit Photo @ Alcoa)

NEW YORK & TORRANCE, Calif.–(BUSINESS WIRE)–Alcoa Fastening Systems (AFS), a unit of Alcoa (NYSE: AA), today announced it has signed a strategic technology and commercial cooperation agreement with Commercial Aircraft of China, Ltd (COMAC). This agreement deepens Alcoa’s existing partnership with COMAC, the main manufacturer of large passenger aircraft programs in China, and reinforces Alcoa’s presence in one of the world’s fastest growing aerospace markets. “This agreement establishes Alcoa Fastening Systems as a key partner with COMAC in the development and production of its commercial C919 aircraft,” said AFS President Vitaliy Rusakov. “Since 2005, with the inception of our manufacturing operations in Suzhou and our distribution facility in Waigaoqiao, we have anticipated and supported the needs of the growing Chinese aerospace market. We value our relationship and look forward to developing our long-term partnership with COMAC.” AFS will provide COMAC with technical assistance in fastener and assembly tooling selection, joint design Continue Reading

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Global steel director for Brazil’s Vale quits amid division reshuffle (US)

21-01-2013

Category : Strategy

Aristides Corbellini

With the restructuring, the president of Vale, Murilo Ferreira, will fulfill the promise made when he took office in 2011 to focus efforts on mining (Credit  Photo @ YBBRO)

Brazil’s mining giant Vale (NYSE:VALE) has lost its global steel director, Aristides Corbellini (pictured), as part of a downsizing process in the company’s steel division, reported local paper Exame.com (in Portuguese). With Corbellini’s resignation, the global steel director’s position will no longer exist, says the article. From now on the responsibility for Vale’s steel investments will be divided among the executive Continue Reading

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VSMPO’s CEO: “Timet, Aubert & Duval and Wyman-Gordon, our main competitors” (Russian)

07-01-2013

Category : Strategy

” We estimate our Market share of about 30%. The main competitor is  TIMET, a number of Japanese and American manufacturers. From the point of view of “Smiths” – a French manufacturer stampings Aubert & Duval and American Wyman Gordon. The Carve-up of the market is made by our customers – Boeing, Airbus, which distribute their orders between major producing competitors. Here, on the one hand, the price factors play a role, and the other – political. ” Mikhaïl Voïevodine, VSMPO-AVISMA CEO (Credit Photo @ Beriki)

  • We have decided to consider the “Titanium Valley” as a place to build new production facilities with partners.
  • Tax benefits to residents’ Titanium Valley “, will allow us to compete with other countries and attract foreign investors.
  • We plan to build a new plant for metal working. This is advantageous, since we do not pay taxes.
  • There is a study of the project of another plant with a foreign partner, construction could begin as early as next year.
  • In order to begin construction, we need to make sure that the ‘Titanium Valley “will have the necessary infrastructure, this require significant investments in water supply, electricity, etc. so we need  necessary funds from the budget of the Russian Federation.
  • Company valuation and negotiations with banks were not conducted for the IPO.
  • For us, this year, a record for all indicators. At the end of 2012 the volume of production of titanium is more than 31,000 tons. despite the fact that the maximum production of VSMPO in the 90′s did not exceed 27,000 tons. Revenue this year will be more than 39.5 billion rubles, net profit more than 7 billion.
  • The average salary rose to 28,000 rubles.
  • Our investment program reaches a record this year – we have invested around 8 billion. Among the major projects of the construction of two skull furnaces for 2.5 billion rubles, which will be completed next year.   It will be also completed by an installation of a new forging press – the project has invested more than 2 billions rubles. We buy and build a new complex for the production of rolled rings, parallel processing is the mechanization drive and coils. The project cost 2.5 billion rubles was launched in this year and should end in 2016. This will increase our capacity by a factor of 3 for rings, the machining drives for 1.5 times , and  coil for 2.2 times. Next year will continue investments in all sectors – in rolling, forging and machining of production. Investments for the next year are expected to reach 6 billion rubles.
  • Civil aircraft industry are starting to build composite aircraft – like Boeing-787, Airbus A350. The more aircraft composite materials, the more you need titanium, as composite materials are incompatible with the steel and aluminum – corrosion occurs. If the use of titanium aluminum plane was up to 5% by weight, the composition up to 20%.
  • We are working with Boeing to develop new titanium alloys, which will cost less. The most common alloy in aviation is 6-4, but in some parts of the aircraft we do not need the features that it offers. For example, for the manufacturing of the chassis needs very important strength, fracture toughness and strength. However, for the titanium Continue Reading
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SMC to play a Strategic Role in PCC’s Titanium Growth (US)

02-01-2013

Category : Strategy

One of SMC’s assets that could prove particularly valuable to Timet is its 110-inch mill in Huntington, which could be used to convert Timet melted product into aerospace alloy titanium plate.  On photo SMC’s Huntington Plant (Credit Photo @ Observer-Dispatch)

Focus :

  • Timet makes different products than SMC but its role within PCC will be similar to SMC’s “in terms of being able to supply PCC internal needs.
  • Timet has at least two outsourcing agreements with Haynes International and Carpenter Technology.
  • In 2006 Haynes signed a 20-year deal with Timet , in exchange to a commitment to produce 10 million pounds of flat products per year guaranteed for TIMET in exchange it will be receive 50$ million of fees.
  • In 2007 Timet signed a minimum 12-year agreement with Carpenter under which Carpenter will provide forgings to Timet and TIMET will provide melting capacity to Carpenter. The deal could be extended to 20 years maximum.
  • Haynes & Carpenter said this week that their agreements with Timet remain in effect

AA

SMC key in growing Timet’s role in Precision Castparts

LOS ANGELES — Precision Castparts Corp. will use its existing specialty alloys operations to extend the downstream product role of Titanium Metals Corp. under Timet’s future ownership by PCC. PCC chairman and chief executive officer Mark Donegan said last week that PCC plans to utilize the assets of Huntington, W.Va.-based nickel and cobalt alloys producer Special Metals Corp. to stretch Timet’s product range within its new parent company. “Where SMC was a fully integrated mill (when it was acquired by PCC in 2006),” Timet is a “fully integrated melter—they’re not a mill,” Donegan told financial analysts at a meeting in New York.

 ”Where SMC was a fully integrated mill (when it was acquired by PCC in 2006),” Timet is a “fully integrated melter—they’re not a mill,”

Mark Donegan, PCC President CEO & President

 However, PCC can “match” SMC’s down stream assets with Timet’s melt capabilities and “create a fully integrated mill” out of the Continue Reading

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US Titanium Alloys Makers Strategy : offer more than just metal to the aerospace industry (US)

17-12-2012

Category : Strategy

A heated ingot, produced from titanium sponge, is heated and transferred to a 4,000-ton open-die press at Timet’s Toronto, OH, plant, prior to further processing as mill products. (Credit Photo @ Titanium Metals Corp.)

FOCUS :

RTI

  • Sales :  $529.7 million
  • Revenu : $6.6 million
  • Last Investment : $182.5 million this year to purchase Remmele Engineering**

ATI

  • Sales :  $5.2 billion
  • Revenu : $214.3 million
  • Last Investment : $897.6 million in May 2011 to acquire Ladish

PCC

  • Sales :  $7.2 billion
  • Revenu : $1.2 billion
  • Last Investment  : $2.9 Billion in December 2012 to acquire TIMET

TIMET

  • Sales :  $1 billion
  • Revenu : $117.2 million
  • Last Investment : TIMET Opens a New European Service & Distribution Facility In France

AA

November 18, 2012 – Market pundits have observed that the $2.9 billion that Precision Castparts, which supplies castings and other components to the aerospace industry, is paying for Titanium Metals is equal to the value investors place on all of the stock of Allegheny Technologies. The compelling comparison aside, the combination will have a profound effect on Allegheny Technologies and another Pittsburgh-based titanium producer, RTI International Metals. Aerospace and defense accounted for about 30 percent of Allegheny Technologies’ business and 87 percent of RTI’s revenue last year. The transaction, announced Nov. 9, will give Precision a secure source of raw materials and the integrated supply chain — from melting titanium to making forged components from the high strength metal — the aerospace industry demands. Boeing, Airbus and other aerospace companies prefer dealing with one supplier who can do it all instead of buying metal from one company, then negotiating with others to shape the metal into the components they need.  Consequently, their suppliers “want to sell a system or solutions rather than something that costs so many cents a pound,” said John Tumazos, an industry analyst from Holmdel, N.J.
Boeing, Airbus and other aerospace companies prefer dealing with one supplier who can do it all instead of buying metal from one company, then negotiating with others to shape the metal into the components they need. Consequently, their suppliers “want to sell a system or solutions rather than something that costs so many cents a pound”
Precision already has such an arrangement in the high-performance nickel alloys business — another market where it competes with Allegheny Technologies — thanks to its 2006 acquisition of Special Metals.  How much are such arrangements worth? Precision values the possibilities so much that it is willing to acquire the shares of Dallas-based Titanium Metals, also known as Timet, for a 43 percent premium. “The potential for value creation is vast,” Mark Donegan, Precision chairman and CEO, said in the press statement announcing the acquisition. Investors agreed. While the shares of companies making an acquisition typically fall on the news, Precision’s stock jumped 5 percent Monday, the first day of trading after the announcement. They retreated after that but finished Friday at $174.05, up $2.72 for the week. The increase reflects investor confidence that Precision, which has made seven significant acquisitions over the last three years, can deliver on the Timet synergies it is touting. The Precision-Timet marriage is a larger-scale version of a strategy Allegheny and RTI are pursuing. Both metals producers are moving downstream in order to offer more than just metal to the aerospace industry.
The Precision-Timet marriage is a larger-scale version of a strategy Allegheny and RTI are pursuing. Both metals producers are moving downstream in order to offer more than just metal to the aerospace industry.
Allegheny paid $897.6 million in May 2011 to acquire Ladish, a Cudahy, Wis., company that forges and casts metal supplied by its new parent into products for aerospace, defense and other industries. And Moon-based RTI spent $182.5 million this year to purchase Remmele Engineering, a New Brighton, Minn., company that makes precision engineered and machined titanium and aluminum parts for the aerospace, medical device and other markets. To put things in perspective, Precision, which posted net income of $1.2 billion for the fiscal year ended April 1 on sales of $7.2 billion, is buying a company that had 2011 earnings of $117.2 million on sales of $1 billion. Precision accounted for 15 percent of Timet’s revenue last year. Allegheny had 2011 net income of $214.3 million on sales of $5.2 billion while RTI earned $6.6 million on sales of $529.7 million last year. Davenport & Co. analyst Lloyd O’Carroll believes the transaction will have a significant impact on the titanium and aerospace industries as well as on companies that compete with Precision and Timet. He expects it will be a few years before those changes are apparent. “It takes time for all companies to adapt to a new situation where [Precision] is potentially a supplier, competitor and customer to many other companies all at once,” he wrote in a note to investors Monday. Allegheny, RTI and other companies in the market “will likely tread carefully to avoid damaging commercial relationships with Precision, but will look for their own strategic moves,” he wrote.
 ”It takes time for all companies to adapt to a new situation where [Precision] is potentially a supplier, competitor and customer to many other companies all at once,” Allegheny, RTI and other companies in the market “will likely tread carefully to avoid damaging commercial relationships with Precision, but will look for their own strategic moves,”
 Allegheny, which is a supplier to Precision as well as a competitor through its Ladish unit, could seek more contracts like the one that it has with General Electric, which mandates that suppliers buy their metals from Allegheny, Mr. O’Carroll wrote.  He said the major impact on RTI could come from what happens to the titanium scrap market. Each stage of production generates scrap metal that provides a source of material for making more titanium and sells for a high enough price to boost the profit margins of the company that controls it. RTI could be hurt if Precision controls a greater portion of scrap following the acquisition, control that could increase RTI’s raw materials costs, Mr. O’Carroll wrote.
Each stage of production generates scrap metal that provides a source of material for making more titanium and sells for a high enough price to boost the profit margins of the company that controls it. RTI could be hurt if Precision controls a greater portion of scrap following the acquisition, control that could increase RTI’s raw materials costs
The fact that Precision is paying $2.9 billion for a company that produces about the same amount of titanium as Allegheny Continue Reading
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Ratan Tata : No layoffs to cut costs in Europe (US)

17-12-2012

Category : Strategy

Tata Group’s Chairman Ratan Tata(Credit  Photo @ Star Media)

MUMBAI: Fighting economic downturn in Europe, Tatas are working to lower costs at its Jaguar Land Rover and steel operations there including a possible sale of any “piece of business” but will try not to cut any jobs, says the outgoing group Chairman Ratan Tata.  The salt-to-software conglomerate’s head also took on those who criticise the group’s prized acquisitions of JLR and Corus as “stupid moves” due to huge cash outgo involved and said they seem to forget that an economic downturn happened soon after these takeovers.  “…. The steel company is really suffering because of the downturn in Europe and the UK. All we are trying to do now is to reduce our cost base so that when we come out of that recession we will have a leaner company,” Tata told PTI in an interview.
 The steel company is really suffering because of the downturn in Europe and the UK. All we are trying to do now is to reduce our cost base so that when we come out of that recession we will have a leaner company,”
 
Tata Group’s Chairman Ratan Tata
“In the case of JLR, we are also told the same thing, it was a stupid thing you did because a fter we bought the company we infused more working capital into the company than the cost of the company,” he said.  Things have changed since then and “Jaguar and Land Rover are today doing very well”, he said.  Talking about the need to cut costs in its operations in Europe, Tata said, “We are trying not to have a (job) reduction, we are trying to reduce cost by rationalising units and if we can reduce cost by selling off any piece of business as we did last year.” 
“We are trying not to have a (job) reduction, we are trying to reduce cost by rationalising units and if we can reduce cost by selling off any piece of business as we did last year.”
 
Tata Group’s Chairman Ratan Tata
 ”We sold off the slab making activity to a Thai company where the jobs get saved. We have been trying to do that, which why job losses have been somewhat small,” Tata said.  Tata SteelBSE 2.33 % had acquired Europe’s largest steelmaker Continue Reading
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Firth Rixson given go-ahead for 19,000-tonne steel forging press (US)

10-12-2012

Category : Strategy

On January 21, 2011, -David C. Mortimer, CEO of Firth Rixson, speaks to an audience of customers at the new Firth Rixson Forgings LLC facility in Midway as Firth Rixson Vice President and General Manager Chris Bohlmann steps down behind Mitsuhiro Takekawa, assistant general manager for IHI Corporation, who received an award for his company’s partnership with Firth Rixson. (Credit Photo @ Seraine Page – Coastal Courrier)

A scheme to build a new 19,000-tonne steel forging press at Firth Rixson has been given the green light by councillors. 

Some 60 new jobs are to be created at the well-established steel company, on Meadowhall Road in Lower Don Valley. The plans were approved at a city centre, south and east planning and highways committee meeting on Monday. The new unit will be built on land which is currently used as the employees’ 90-space car park, and will have four tempering forges and other infrastructure like cranes, storage and control areas as well as the forging press. A new 132-space car park would subsequently be created on land which is currently an overgrown railway embankment on Continue Reading

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Sheffield Forgemasters £50 million of investments since 2005 (US)

10-12-2012

Category : Strategy

 
Monday 19 November -Sheffield Forgemasters has passed a £50 million milestone. That is the amount that has been invested in the Brightside Lane-based steel and engineering business since the buy-out in 2005 which put the company into the hands of it management and a large proportion of its 800 strong workforce. Following the buyout, none of the new owners has taken a dividend from the company’s profits which, instead, have been used to fund the investment programme. Chief financial officer Neil Maskrey said: “Fifty million pounds is a great milestone for us and it is already paying dividends in terms of the level and complexity of innovative projects that we are geared up to undertake. “The decision to maintain our levels of investment into plant and equipment during these harsh economic times is a strategic measure to enable us to capitalise on improved trading conditions when the global economic downturn starts to reverse. “It is a very bold strategy and of course, it carries some risk, but a reduction in reinvestment is not an option for us. “The capital investment initiative is not just essential in a business with this kind of material heritage, it is paramount to keep up with the cutting edge work of our research and development team in seeking out state–of-the-art engineering solutions and creating new products.” Major investments have included a 4,000 tonne press costing £9.1 million, a £15.5 million investment in ‘loose tooling’, including moulds for higher integrity ingots, and tooling to create more diverse forged products on the company’s 4,000 and 10,000 tonne presses.
” Major investments have included a 4,000 tonne press costing £9.1 million, a £15.5 million investment in ‘loose tooling’, including moulds for higher integrity ingots, and tooling to create more diverse forged products on the company’s 4,000 and 10,000 tonne presses ”
Forgemasters has also invested in research equipment, new businesses and environmental improvements, including improved dust extraction and a wildlife area.

Source: The Star

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Aperam accélère sa restructuration pour encaisser la crise

03-12-2012

Category : Strategy

(Credit Photo @ Traces Ecrites News)

  • à 2015, le spécialiste de l’Inox veut économiser 271 millions d’euros.

Nouvelle étape dans la restructuration d’Aperam, l’ex-filiale du numéro un mondial de l’acier ArcelorMittal. Le spécialiste de l’Inox a finalisé la modernisation de l’une de ses lignes de production à Gueugnon (Saône-et-Loire). Grâce à un investissement de près de 50 millions d’euros, le groupe espère économiser, dès 2013, près de 19 millions d’euros sur ses coûts de production. Début 2011, Aperam a quitté le giron du géant de l’acier, avec à ses côtés la famille Mittal comme principal actionnaire. Depuis, la société s’est engagée dans un vaste plan de restructuration pour encaisser le ralentissement économique en Europe. L’an dernier, le groupe a fini dans le rouge, affichant une perte nette de 46 millions d’euros, pour un chiffre d’affaires de 4,8 milliards de dollars. L’accent est donc mis sur la restructuration. L’objectif : réduire les coûts de 25 % d’ici à 2015, soit l’équivalent de 271 millions d’euros d’économies. Pour ce faire, le spécialiste de l’Inox a déjà fermé son usine située dans le Gard et mis en sommeil une partie de ses installations à Isbergues (Pas-de-Calais). Avec la toute nouvelle ligne de production de Gueugnon, dédiée à la transformation des bobines d’acier, le groupe fait un pas de plus vers l’optimisation. 50 euros seront économisés sur chaque tonne d’acier produite sur le site. Mais l’enjeu principal réside dans les gains en termes de flexibilité : la ligne, qui remplace des installations datant des années 1970, peut redémarrer à la demande. «  Rien à voir avec un haut-fourneau », indique Frédéric Midy, directeur de l’usine de Gueugnon. Un atout de taille alors que la consommation d’Inox subit de fortes variations. En avance sur son objectif, Aperam a déjà économisé 194 millions d’euros et espère atteindre son but dès la fin 2013, soit deux ans avant la date prévue. Pour les 77 millions d’euros restants, Philippe Darmayan, directeur général du groupe, va tailler dans les frais généraux dès 2013. A l’instar du Continue Reading

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Firth Rixson plans a new hydraulic steel forging press at Meadow (US)

26-11-2012

Category : Strategy

 
Firth Rixson’s new 200,000-square-foot closed-die forging facility is in Tradeport East, just east of Midway, in Georgia (USA) . The site specialises in Nickel and Titanium based Critical Rotating Discs for New Generation Narrow and Wide Body Aircraft Engines, Military and Aero-Derivative Engines as well as Industrial Gas Turbines.  (Credit Photo @ Seraine Page)
 
20th Nov 2012 | -High tech engineering business Firth Rixson’s plans to add a new hydraulic steel forging press at its Sheffield steelworks have been recommended for approval. The new forge is expected to create 60 new jobs as well as have knock-on effects for other businesses which currently supply Firth Rixson. The application site is at Firth Rixson Forgings steelworks on Meadowhall Road in the Lower Don Valley. The location occupies a 0.6 acre parcel of land and has a prominent position close to a Chesterfield Special Cylinders facility and overspill land associated with the Meadowhall Shopping Centre owned by British Land. This application seeks planning permission to erect a large industrial unit to house a hydraulic steel forging press – one of the largest of its type – four tempering forges, and associated infrastructure including cranes, storage and control areas. The building will be constructed on land that currently makes up the employee car park. The proposal also includes the erection of an additional building to house the pump room which generates the energy to power the machines in the new forge and the relocation of the existing staff car parking to provide 110 new car parking spaces. The existing site is a functioning steelworks and operations currently occur in three large factory buildings. In a report to be scrutinised by councillors, the proposal is described as a “significant investment into Sheffield” and is recommended for approval, subject to conditions. The main forge building is rectangular in shape with a shallow pitched roof to reduce the speed of rainwater run-off. Overall it measures about 50m by 35m and is 23m high to the eaves. Founded in the early 1800s, Firth Rixson makes forged metal parts at 12 factories in the UK, US, China and Hungary and is a world-leading provider to the aerospace market. US private equity firm Oak Hill Capital Partners acquired a majority stake in the business for £945m in 2007. Led by chief executive David Mortimer, the company employs almost 2,000 workers worldwide.

Source : Insider –  Laurence Kilgannon, Yorkshire Correspondent-

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Voestalpine to develop American Headquarter of Böhler-Uddeholm (US)

19-11-2012

Category : Strategy

American Headquarter of Böhler-Uddeholm, located in Elgin, Illinois ( Credit Photo @ Böhler-Uddeholm )

The global Austrian manufacturer of steel products Voestalpine is expanding its operations in the US after announcing they were investing in developing the American Headquarter of Böhler-Uddeholm that they acquired five years ago in Elgin, Illinois. Located around 60 km north-west of Chicago there are around 160 workers from six companies belonging to Voestalpine that are currently working according to Michael Brandl, US-sales director of the company’s smelting division. Elgin is in the middle of America on the famous Rust Belt where the main car manufacturers are located. But it also means they can speedily deliver to the new manufacturing centres in the south. The special steel and tin products from Kapfenberg and Mürzzuschlag are delivered directly to end users but they can now be finished off by the company in America. The tendency in America towards energy-efficient cars with lighter but nevertheless robust tin means evermore efficient machines which means that the stainless steel of the Austrian company is increasingly popular according to Brandl. The crisis of 2008 and 2009 caused the market to drop by 35% making the Continue Reading

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Voestalpine Groundbreaking Ceremony in the USA

19-11-2012

Category : Strategy

Voestalpine Groundbreaking Ceremony in the USA

15 November 2012 - On November 14, the voestalpine Group held a groundbreaking ceremony for the Metal Forming Division’s new US plant in Cartersville, Georgia. The most recent US investment into the future production of automotive components is worth around EUR 50 million and the plant will already be operational by June 2013. Once fully up and running, the plant will provide jobs for around 220 employees. Over the coming years voestalpine will invest significantly more than EUR 100 million into new plants in China, the USA, South Africa, Romania and Germany as part of its comprehensive globalization strategy in the automotive sector. The new US site is the first step in the deliberate global expansion in the premium automotive sector. voestalpine Stamptec Inc. will start with press activities and assembly; investments into hot forming and laser-welded blanks will follow. “The USA is an key automotive market, making it an important cornerstone of our globalization strategy. The new plant in Cartersville will form the basis for our automotive activitites in North America. This investment is only a first step and further expansion is already being planned”, explains Kurt Hinterhölzl, Management Board member of the voestalpine Metal Forming Division, in his opening speech. “This expansion is also our first step in meeting increasing customer demand for our presence in their local markets. Our aim is to provide our usual high standards of quality to all our main customers in the premium sector, and in their own relevant regions”, adds Peter Bernscher, Head of the Automotive Body Parts business unit in the Metal Forming Division. Commissioner Clarence Brown, Cartersville Mayor Matt Santini and Joint Development Authority Chairman James Jarrett, all present at the groundbreaking ceremony, were unanimous in their outlook: “We are very pleased about the investment being made by voestalpine, an outstanding and well-respected Austrian company. We’re sure that the representatives of Cartersville and Bartow County will be delighted with their new neighbors and that Georgia offers voestalpine the ideal location and framework conditions”.

Massive expansion of the global presence in the automotive sector

The steel processing and technology group voestalpine is constantly expanding its global presence. voestalpine sites on four continents are currently being expanded or newly established close to the production facilities of renowned Continue Reading

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Boeing and VSMPO agreed JV extending and R&D cooperation (US)

12-11-2012

Category : Strategy

Ray Conner, president and CEO of Boeing Commercial Airplanes  (left) and Mikhail Voevodin, CEO of VSMPO-AVISMA  (Credit Photo @ VSMPO-AVISMA )

Largest Russian titanium producer, VSMPO-AVISMA, Rostekhnologii subsidiary company, and American Boeing signed a memorandum to extend titanium procurement cooperation by Ural Boeing Manufacturing (UBM) joint venture expansion. Parties will also continue the R&D interaction regarding new technologies and alloys.

Currently the parties are processing 2 new alloys, which might be also used for Russian aero-space industry. Lately Boeing and AVISMA worked out 3 new technologies. Thus Ti5553 high-tensile alloy, created by VSMPO-AVISMA, allows to considerably lower aircraft weight. It is employed by Boeing-787 Dreamliner and may also be used for Russian airplanes. “The decisions made by VSMPO-AVISMA reduce fuel consumption due to weight cutting,” says Rostekhnologii CEO, Sergey Chemezov, “This would enhance cost effectiveness and air carriage reliability,  and environment performance improvement. Our developments will be applied to various international commercial aircrafts. Boeing cooperation expansion will help us to make better decisions for international aero-industry.” Rostekhnologii is Boeing’s reliable and valuable partner in Russia for many years. Together we achieve results that allow us to grow our businesses,” said Ray Conner, president and CEO of Boeing Commercial Airplanes. “Today’s agreements will allow Boeing and Rostekhnologii to further expand our partnership and our mutually beneficial cooperation.” Boeing and AVISMA will expand the UBM joint venture. The expansion will provide JV with increased capacity for machining the 737 landing gear beams. Supporting Boeing’s 737, the most popular commercial jet in the aviation history, is a significant milestone and business opportunity for UBM. The 4 new advanced technology machines have been purchased and are scheduled for installation at UBM in 2013 to be ready to support the 737 production rate increases. “Cooperation with the leading commercial aircraft manufacturer requires world-level specification, quality parameter and techno-economic instruction abidance,” marks Mikhail Voevodin, CEO of VSMPO-AVISMA, “Due to R&D center and high manufacture technologies implementation we reduced the cost of titanium parts and made them affordable for commercial aircraft-building. Earlier titanium could be used only for military-purpose equipment.” In 2012 VSMPO-AVISMA produced 29.5 thousand tons of titanium, 18% of which were Continue Reading

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