ID :
22379
Fri, 10/03/2008 - 09:20
Auther :
Shortlink :
http://m.oananews.org//node/22379
The shortlink copeid
Essar to inject $160mn into Canadian ops; step up production
M Karthikeyan
Sault Ste. Marie (Canada), Oct 2 (PTI) Essar Steel is pumping in USD 160 million (nearly Rs 740 crore) into its Canadian operations to ramp up production to 3.6 million tonnes per annum to feed demand in North America, set up a captive power plant and clean up the environment.
Algoma Steel, which was acquired by Ruias-promoted Essar
Group last year and renamed Essar Steel Algoma, is firing on
all cylinders after the USD 42.3 million revival of its second
blast furnace. The furnace was brought back into operation on
August 12, this year and has helped increase output from to
2.6 MT from 2.1 MT.
"We are delighted that we have successfully implemented
the best technological and engineering practices from across
both the organisation. This has resulted in a 30 per cent
improvement in productivity. I am happy to say the integration
has produced extremely positive results, with both
organisations aligned with a view to growth," Essar Steel
Algoma's COO Armando Plastino said.
The company would spend USD 160 million to further
increase production by 1 MT in the 12 months to March 31,
2009. "Most of the (funds for) capital expenditure will come
from self generated cash," Essar Steel Algoma Vice President
(Finance) Sandeep Dixit told visiting Indian reporters here.
A chunk of the investment would go towards setting up a
co-generation power plant that would cut the steel plant's
energy requirements by half. The captive power plant would use
waste fuel from the steel plant to produce electricity and is
expected to be commissioned by January next year.
Essar Steel Algoma also hopes to achieve greater
synergies once its sister concern Essar Steel Minnesota, an
integrated plant with its own iron ore reserves in the U.S.,
starts feeding it with the key raw material.
Dixit said the company hopes to achieve synergies once
ore supplies start from Minnesota, as part of the vertical
integration strategy adopted by the parent company in India.
The Algoma plant currently sources ore from Cleveland Cliffs
and coal from Massey in West Virginia in the US.
The company last month announced an USD 1.6 billion
investment in its Minnesota operations, where it would be
setting up a 2.5 M.T.P.A. steel plant. This would complement
Essar Steel Holdings Ltd's plan to shore up capacity in Asia
and the Americas to 20 to 25 M.T.P.A. by 2012. The company's
Indian operations have a capacity of 4.6 M.T.P.A. and would go
up to 10 M.T.P.A. by 2010.
The Canadian market accounts for 49 percent of Essar
Steel Algoma's total sales, while the majority 51 per cent of
the products are shipped to the U.S. Estimates suggest that
demand for the alloy in North America would grow by 3 percent,
although according to the International Iron and Steel
Institute, consumption in the US fell by 11 percent in 2007
from year ago levels.
The company's product mix is made of 20 percent plate
and 80 per cent sheet, which includes 28 percent to the auto
industry.
The Indian group, which acquired the over 100-year-old
plant that governs the fortunes of this industrial city's
75,000 strong population, is also investing USD 84.7 million
to clean up the environment over 18 months ending December
next year so that residents do not suffer any longer. Part of
this funds would come from the USD 160 million capital
expenditure.
Last week, a group from a US city described the air in
the city as carrying the "distinct smell" of industry.
"We might be on their backyard, pretty soon we hope they
won't know it," said Jerry Freeman, Manager, Environmental
Control Services, Essar Steel Algoma, which is located just
500-700 metres away from a residential area.
Essar Steel has already made significant reduction in air
particulate emission and noise and plans to further reduce
emissions by 15.7 per cent by end of 2009.
The investment is part of Essar's demonstration of
commitment to the community, which a year ago viewed the USD
1.7 billion acquisition with a lot of apprehension but has
since changed its perception about the foreign player coming
into the country. PTI KM
Sault Ste. Marie (Canada), Oct 2 (PTI) Essar Steel is pumping in USD 160 million (nearly Rs 740 crore) into its Canadian operations to ramp up production to 3.6 million tonnes per annum to feed demand in North America, set up a captive power plant and clean up the environment.
Algoma Steel, which was acquired by Ruias-promoted Essar
Group last year and renamed Essar Steel Algoma, is firing on
all cylinders after the USD 42.3 million revival of its second
blast furnace. The furnace was brought back into operation on
August 12, this year and has helped increase output from to
2.6 MT from 2.1 MT.
"We are delighted that we have successfully implemented
the best technological and engineering practices from across
both the organisation. This has resulted in a 30 per cent
improvement in productivity. I am happy to say the integration
has produced extremely positive results, with both
organisations aligned with a view to growth," Essar Steel
Algoma's COO Armando Plastino said.
The company would spend USD 160 million to further
increase production by 1 MT in the 12 months to March 31,
2009. "Most of the (funds for) capital expenditure will come
from self generated cash," Essar Steel Algoma Vice President
(Finance) Sandeep Dixit told visiting Indian reporters here.
A chunk of the investment would go towards setting up a
co-generation power plant that would cut the steel plant's
energy requirements by half. The captive power plant would use
waste fuel from the steel plant to produce electricity and is
expected to be commissioned by January next year.
Essar Steel Algoma also hopes to achieve greater
synergies once its sister concern Essar Steel Minnesota, an
integrated plant with its own iron ore reserves in the U.S.,
starts feeding it with the key raw material.
Dixit said the company hopes to achieve synergies once
ore supplies start from Minnesota, as part of the vertical
integration strategy adopted by the parent company in India.
The Algoma plant currently sources ore from Cleveland Cliffs
and coal from Massey in West Virginia in the US.
The company last month announced an USD 1.6 billion
investment in its Minnesota operations, where it would be
setting up a 2.5 M.T.P.A. steel plant. This would complement
Essar Steel Holdings Ltd's plan to shore up capacity in Asia
and the Americas to 20 to 25 M.T.P.A. by 2012. The company's
Indian operations have a capacity of 4.6 M.T.P.A. and would go
up to 10 M.T.P.A. by 2010.
The Canadian market accounts for 49 percent of Essar
Steel Algoma's total sales, while the majority 51 per cent of
the products are shipped to the U.S. Estimates suggest that
demand for the alloy in North America would grow by 3 percent,
although according to the International Iron and Steel
Institute, consumption in the US fell by 11 percent in 2007
from year ago levels.
The company's product mix is made of 20 percent plate
and 80 per cent sheet, which includes 28 percent to the auto
industry.
The Indian group, which acquired the over 100-year-old
plant that governs the fortunes of this industrial city's
75,000 strong population, is also investing USD 84.7 million
to clean up the environment over 18 months ending December
next year so that residents do not suffer any longer. Part of
this funds would come from the USD 160 million capital
expenditure.
Last week, a group from a US city described the air in
the city as carrying the "distinct smell" of industry.
"We might be on their backyard, pretty soon we hope they
won't know it," said Jerry Freeman, Manager, Environmental
Control Services, Essar Steel Algoma, which is located just
500-700 metres away from a residential area.
Essar Steel has already made significant reduction in air
particulate emission and noise and plans to further reduce
emissions by 15.7 per cent by end of 2009.
The investment is part of Essar's demonstration of
commitment to the community, which a year ago viewed the USD
1.7 billion acquisition with a lot of apprehension but has
since changed its perception about the foreign player coming
into the country. PTI KM
