TATA Motors not eyeing Ford\’s Mazda stake
Reuters reported that TATA Motors is not in talks to buy Ford’s stake in Japan’s Mazda Motor Co.
Mr Debasis Ray spokesman of TATA Motors said that “There have been reports in the media that TATA Motors is among potential buyers for shares in Mazda Motors. TATA Motors clarifies that the report is incorrect.”
TATA Steel helping flood victims in Bihar and Orissa
It is reported that TATA Relief Committee supported by TATA Steel and other TATA Companies of Jamshedpur have made all efforts in the relief and rehabilitation work required for the flood victims in the states of Bihar and Orissa. It has not only provided temporary shelters and homes to the homeless at the relief camps but is also assisting the two state governments in the rehabilitation and reconstruction process.
The havoc created by the floods when Kosi River digressed from its normal course, was a natural calamity that struck North Bihar. TATA Relief Committee came forward and assisted the State Government in the rehabilitation work by constructing 50 semi-permanent relief shelters in the flood affected areas. Materials such as Tata Shaktee sheets and TATA MS pipes worth several crores, was used for building the shelters.
TRC has been working in Orissa with the district administration in the five affected districts of Cuttack, Kendrapara, Jagatsinghpur, Puri and Jajpur. It provided immediate temporary shelter to the victims by distributing 30,000 tarpaulin sheets amongst the affected families. The fund for the reconstruction work undertaken by TRC in the flood affected areas of Bihar and Orissa have been collected by TATA Steel and numerous other associations, local bodies and individuals from across the country. Read more
TATA Motors acquires stake in Miljo Grenland Innovasjon
Project today reported that TATA Motors’ subsidiary TATA Motors European Technical Center Plc has acquired 50.3% majority stake in Norway’s Miljo Grenland Innovasjon.
Miljo will produce electric vehicles based on TATA Motors’ products, besides manufacturing of state of the art super polymer lithium ion batteries and the development of related technologies.
The first such vehicle to be developed by the company will be the electric version of Indica. It is scheduled for launch in Europe by 2009. The car Indica EV will be capable of carrying four people with a predicted range of up to 200 kilometer and acceleration of 0 to 60 kilometer per hour in less than 10 seconds.
Mr Paswan assures to safeguard Indian steel makers
Statesman News Service reported that Mr Ram Vilas Paswan Union steel minister assured the people in Bhubaneswar that government will definitely protect the interest of steel companies as they had held the price line and even lowered costs when inflation was skyrocketing.
Mr Paswan said that “I am meeting them on October 18th to discuss certain issues including those concerning the export and import duty in view of the slowdown in international market. Interest of the consumers as well as the industry needs to be safeguarded.”
Baosteel triples Steel supply to Dongfeng Nissan in 2008
It is reported that Baosteel’s steel products supply to Dongfeng Nissan Passenger Vehicle Company has topped 0.1 million tonnes for the year, recording a historical high and up by 300% YoY.
Dongfeng Nissan is one of the key strategic cooperators of Baosteel in terms of auto sheet as well as the mill’s first partner among Japanese automakers. These days, most of its outer body steel sheet is purchased from the largest mill in China. Meanwhile, Baosteel united its sales group, Dongfeng Nissan and auto parts suppliers to jointly issue a mode for joint steel products purchase. The Chinese top mill has further expanded supply varieties and scope to its customers, and increased HR auto sheet supply to Dongfeng Nissan at the moment in addition to the stable major species provision like HDG and common carbon CR products.
Malaysian steel industry eying Middle East steel market
Bernama reported that Malaysian steel companies are eyeing the lucrative market of the Middle East where, the construction sector a main consumer of steel, still holds out the promise of good business despite a slight weakening caused by the global financial meltdown.
A number of Malaysian steel executives had just concluded a 2 day conference called the Middle East STEEL 2008 which ended here yesterday. The conference hosted by MEED Middle East Business Intelligence attracted most of the key steel players in the region.
Mr Tai Hean Leng MD & CEO of Malaysia Steel Works KL Bhd of Petaling Jaya said in an interview with Bernama that “We expect the Middle East region to be a very promising market after the recent slowdown in the region due to a number of factors including the recent Ramadan, when business activities limp at a much slower pace.”
Dubai is seen by many Malaysian steel suppliers as one gigantic construction site, boasting the highest per capita density of construction cranes. This concentrated presence of construction cranes on a relatively small piece of real estate is unique and not seen in such concentration elsewhere in the world.
But Mr Tai said that Iran and Saudi Arabia are also interesting markets for Malaysia’s steel industry. He said that “Iran is an interesting market despite the difficulties one encounters. Letters of credit opened by Iranians are not always accepted by many banks. Secondly, Iran has problems with some countries which have imposed sanctions against it.”
Mr Tai was bullish about Malaysia’s steel industry because of what he attributed to the Malaysian government’s fiscal prudence reflected in the allocation of MYR 210 billion for infrastructure projects under the 5 year Ninth Malaysia Plan which will run until 2010. Only 30% of the allocations have been spent and the rest needs to be spent within the next 2 years.
He said that “We hope the new government will expeditiously push the projects in the next 18 months or so. He added that Railways, hospitals, highways and bridges are included for development in the 5 year plan.”
As per report, Malaysia with only about 9 million tonnes steel production capacity currently could increase its capacity if demand in the Middle East rises. Masteel with a half a million tonnes capacity, exports 50% of its production mix to a number of countries.
Mr Tai said that “Because of the slump in demand in several developed countries, which are in a state of near recession, demand will come mainly from the Middle East. But he was also bullish about Malaysia which seemed to have benefited from the government’s prudent and farsighted policies.”
He said that “Malaysia’s demand will hold well because of the short time left for the government to exhaust its allocation. Indeed, Malaysia’s banks and consumption have been insulated against the current global turmoil. He added that our banks are lending because of the cautious and prudent banking regulations devised by the government which has not caused the hemorrhage seen elsewhere.”
Mr Tai added that steel companies in Malaysia have been fairly successful and amassed reserves which would help insulate them now. He further said that “They can easily shut down their operations for some time until the situation improves and live on their past earnings, instead of producing and building up unnecessary stocks, they can always increase production once demand rises.”
