Stelco, Canada

 Stelco, Canada’s last domestically owned steel maker, said Friday that it was in early talks that might lead to its sale.While foreign buyers have gradually taken control of Canada’s other steel companies, including Dofasco, Stelco remains independent, largely because it is unprofitable and some of its plants are outdated. Stelco emerged from a prolonged period of bankruptcy restructuring in March 2006 burdened with debt and pension obligations.

Stelco’s most attractive operation is its Lake Erie mill at Nanticoke, Ontario, which completed a renovation and expansion late last year at a cost of 270 million Canadian dollars ($252 million). While Mr. Mott has been working to reduce costs, the company’s much older traditional base of operations at its headquarters in Hamilton, Ontario, is unprofitable.

Over all, Stelco reported a net loss of 39 million Canadian dollars in the first quarter of this year and a net loss of 145 million Canadian dollars in the preceding quarter.

As part of its restructuring, Stelco agreed to make up, over 10 years, a pension shortfall of 675 million Canadian dollars. The company is also carrying about 738 million Canadian dollars in debt.

The company has long had a strained relationship with the United Steelworkers union. That situation has only been made worse by recent job reductions in Hamilton.

Stelco declined to comment beyond its statement, which did not identify the potential buyers. But the trend toward steel industry consolidation suggests that any new owner will not be Canadian.

Severstal of Russia, which owns a former Ford steel mill in Dearborn, Mich., tried to acquire Stelco during its restructuring.

Brookfield Asset Management of Toronto is Stelco’s largest shareholder, with about 36 percent of its stock. It did not respond to requests for comment

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in Kolkata.

The Rupees One Lakh Car of Tata Motors- a new year gift to Kolkata.

This project will see the musrooming of auto ancilliaries in Kolkata. The eastern region was lagging far behind in this segment and was not getting the feel of the auto boom in the Indian Market.  With the plant of TELCO, lots of auto ancilliaries will come up in and around Kolkata. Presently, 85% of these ancilliaries are situated in North and South India. Kolkata was having a very few units, which can be counted on fingers. Now the market of this region will get a massive boost and the overall economy will grow.

Being a trader of Steel Strips, I feel that the demand of Steel Strips, which is highly consumed for making auto componants, will show a rapid growth in future. 

Russian company agrees to buy Claymont Steel for $564.8 million

The hulking steel plant tucked in the northeastern corner of the state never has been much to look at. Monday, it started looking a whole lot better to some people.

In fact, Claymont Steel has become alluring enough to attract a suitor all the way from Russia.

If all goes as expected, the 87-year-old mill will be bought for $564.8 million by coal and steelmaker Evraz Group SA, which began its push into the United States last year with the $2.3 billion purchase of Oregon Steel Mills.

Claymont Steel’s board of directors unanimously recommended that shareholders accept Evraz’s offer. H.I.G. Capital, the private investment firm that bought Claymont Steel’s predecessor in 2005 and now owns about 42.6 percent of its common stock, has committed to tender its shares.

“The price is a good one,” analysts at Aton Capital, including Dmitry Kolomytsyn, wrote in a research report Monday. “Evraz Group has a history of successful and value-accretive acquisitions. The latest purchase will be just as successful.”

Claymont Steel executives could not be reached for comment Monday.

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