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Metals Chips

By Tom Stundza -- Purchasing, 2/14/2008

O'Neal Steel service centers in Cincinnati—AIM International and Ferguson Metals—are being consolidated into the Ferguson facility, which is now known as United Performance Metals. The consolidation is aimed at offering a larger array of flat-rolled and specialty metals, including stainless steel. O'Neal acquired both companies in 2006.

Precision Flamecutting & Steel of Houston, which processes and distributes carbon, alloy, and high strength, low alloy steel plate, has been acquired by PNA Group of Atlanta, which is comprised of former Preussag North America assets. PNA Group already is the parent company of service center groups Feralloy, Delta Steel, Infra-Metals and Metals Supply.

Galvanized steel producer Winner Steel of Sharon, Pa. is now operating as Sharon Coating. It is owned by a joint venture between Russia's Novolipetsk Steel and the multinational Duferco Group.

Reliance Steel & Aluminum Co., based in Los Angeles, has sold the assets and business of its Encore Coils division to Samuel, Son & Co. of Mississauga, Ont. Encore Coils, a unit of the former Encore Group bought a year ago by Reliance, operates out of five facilities in Western Canada, processing and distributing carbon steel flat-rolled products. Reliance will retain the U.S. and Canadian units known as Encore Metals and Team Tube.

Minnesota governor Tim Pawlenty approved $30 million in state funding for the long-delayed Minnesota Steel project, but that's half what was requested as the state's share by owner Essar Steel of India. The $1.6 billion, 2.5 million tons/year ore-to-slab project is planned for Nashwauk, Minn.

The Samuel Specialty Metals service center in Vancouver, B.C., now is called Samuel, Son & Co., Vancouver, to reflect the fact that it stocks a full range of carbon and stainless steel and aluminum products.

Blackburn, England-based specialty metals distributor Metals UK Group has been acquired by A.M. Castle & Co. of Franklin Park, Ill. More commonly known as Castle Metals, the firm distributes specialty metals and plastics.

A. M. Castle & Co. has obtained a business license for the opening of a new service center in Shanghai, China. A.M. Castle Metal Materials (Shanghai) Co. (doing business as Transtar Metals) is expected to be fully operational in the second quarter of 2008.

Initially, the Shanghai operation will be equipped to primarily service the aerospace demand in China. However, Castle Metals plans to expand into other markets in need of specialty metals and supply chain services.

China's Shanghai Baoshan Iron & Steel and Brazil's mining giant Vale (formerly CVRD or Companhia Vale do Rio Doce) will build Companhia Siderurgica Vitoria, or CSV, a 5 million metric ton/year steel mill in Brazil. The $3 billion project includes a rail line, deepwater port and electric power plant and is expected to be completed by the end of 2011.

Mining firm Vedanta Resources plans to invest $15 billion to produce one million metric tons annually each of aluminum and zinc in India by 2010, says CEO Kuldip Kaura. Currently, the company produces 400,000 metric tons/year of aluminum and 670,000 metric tons of zinc. The company also plans to increase iron-ore production to 20 million metric tons/year by 2010 and is looking for an investment partner to build a steel plant in the Indian state of Orissa.

Emirates Steel Industries is adding 1.4 million metric tons/year of steel capacity to the Mussafah facility's existing 700,000 metric tons a year. The expansion will cost $1 billion for parent company Abu Dhabi Basic Industries Corp., according to Jim White, COO.

The Norfolk Iron and Metal steel service center chain of Nebraska is opening a new warehouse and processing operation in Durant, Iowa, in 2008.

Sheet-steel service center Heidtman Steel is adding in-line tension leveling capability and a continuous defect detection system to the existing pickling line in Cleveland, Ohio.

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Monday Midday Business Report (January 15, 2008)
January 15 edition – Includes market alerts for scrap steel, iron ore, copper, steel wire rod, NAND Flash chips, DSPs, and ocean-freight rates. Plus, China may cut tin exports. Watch It Now

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