ThyssenKrupp Picks Alabama
for Carbon, Stainless Mill
ThyssenKrupp AG has chosen Mount Vernon, Ala., as the site for its new mill, which will produce both carbon steel and stainless steel. The $4.16 billion facility is expected to begin steel production in 2010.

The central element of the new plant will be a jointly used hot-strip mill with a capacity of up to 5.2 million tons per year. It will process 3 million tons of slabs from the new ThyssenKrupp CSA steel mill in Brazil and produce 4.1 million metric tons of flat carbon steel end products per year. Cold-rolling and hot-dip coating capacities will also be installed for premium carbon steel end products.

In addition, ThyssenKrupp Stainless will build an electric steel plant with a capacity of up to 1 million metric tons of slabs annually, which will be rolled on the hot-strip mill. A cold-rolling facility will also be erected during the first phase, which will produce 350,000 tons of cold-rolled strip and 125,000 tons of pickled hot-rolled material.

An additional 340,000 tons of stainless hot-rolled produced on the hot-strip mill will be supplied to the ThyssenKrupp Mexinox cold-rolling facility in San Luis Potosí, Mexico.

“This project is a central element of the group’s strategy for the steel and stainless segments, aimed at achieving profitable growth in Europe and North America,” says Executive Board Chairman Ekkehard Schulz. “It will considerably strengthen ThyssenKrupp’s position in North America, one of the biggest volume markets for high-grade flat carbon steel.”

The new mill in the United States is a central element of ThyssenKrupp’s stainless growth strategy. Experts predict growth rates of over 3 percent per year in the NAFTA region up to 2012.

Beyond the original model, ThyssenKrupp will install additional equipment to further diversify its product portfolio. ThyssenKrupp Stainless will increase its capacity and broaden its flat stainless steel product mix. In the future, the company will also be able to supply products in widths of 72 inches, giving it a unique position on the U.S. market, according to company officials.

Mittal Plans to Restart
Idled Gary Plate Mill
Mittal Steel USA is planning to restart the idled plate mill in Gary, Ind., due to strong market demand for plate products. The reopening of the plate mill is targeted for September 2007.

In 1990, the mill underwent a major modernization program that included automatic hydraulic gauge control. The mill has the ability to produce plate up to 150 inches in width with lengths up to 1,500 inches desired by customers for better productivity.

“The reopening of the Gary mill would allow Mittal to meet the increasing demands of the energy market, which is forecasted to be strong for the next several years,” says Shelby Pixley, CEO of Mittal Plate USA. “Largely due to the strength of this market, plate demand has grown significantly for large-diameter line pipe, wind towers, transmission towers and tank cars.”

Mittal also plans to participate in the export market to take advantage of strong global demand for plate products in the construction, machinery and shipbuilding markets. Additionally, the reopening of the Gary mill will enable Mittal to increase its heat-treat capacity for quench and temper product, which, like wide plate, is in strong demand.

IPSCO Accepts Offer
from Sweden’s SSAB
IPSCO, one of North America’s leading tubular producers, agreed to be acquired by Swedish company SSAB in a $7.7 billion transaction. Shareholders of IPSCO will be paid $160 per share by SSAB.

The Lisle, Ill.-based company had announced the possibility of an acquisition in April.

“This transaction joins IPSCO with a leading player in the global steel industry and reinforces our already solid position as a leading supplier of steel plate and energy tubulars in North America,” says IPSCO President and CEO David Sutherland. “SSAB is a highly regarded company with a first-rate work force that shares many similar values with IPSCO, including a commitment to quality products, workplace safety and manufacturing excellence. As part of this new, larger company, we will have a more diversified product offering that will enhance our ability to better serve both existing and new customers.”

The boards at both companies have approved the transaction, which still requires the approval of two-thirds of the votes cast in a special meeting of IPSCO shareholders scheduled for July 16.

“The acquisition of IPSCO represents a further step in SSAB’s 2010 strategy towards global leadership in value-added steel. Through this transaction, SSAB will accelerate its growth and acquire a platform for future expansion and market presence in North America,” says SSAB President and CEO Olof Faxander.

IPSCO, a producer of energy tubulars and steel plate, has an annual steelmaking capacity of 4.3 million tons. SSAB is a publicly traded company in Sweden with a leading European position in quenched and tempered heavy plate and EHS/UHS steel sheet. Its metals group consists of four divisions, including its sheet and heavy plate operations with shipments of 3.1 million tons in 2006. It also has processing and trading divisions.

Alcoa Launches Hostile Bid to Acquire Alcan
Pittsburgh-based Alcoa Inc. remains determined to acquire rival aluminum producer Alcan after the Canadian company’s board of directors unanimously rejected Alcoa’s takeover offer.

The American company launched a takeover effort in early May after two years of talks about a friendly merger broke down. Alcoa has offered $73.25 per share in cash and stock in a transaction estimated at $33 billion.

The Alcan board quickly rejected the offer. “Alcan’s board of directors has thoroughly evaluated Alcoa’s offer and concluded that it fails to meet the best interests of Alcan shareholders,” says Yves Fortier, chairman. “It does not adequately reflect the value of Alcan’s extremely attractive assets, strategic capabilities and growth prospects, does not offer an appropriate premium for control of Alcan, and is highly conditional and uncertain.”

Yet Alcoa Chairman and CEO Alain J. Belda says his company saw nothing in Alcan’s response that would lead Alcoa to reevaluate its offer.

“We are pleased that Alcan recognizes both the strategic rationale of this combination and the unique opportunity to achieve $1 billion in annual synergies. Alcoa is the most logical partner for Alcan, and our proposed combination is driven by an unquestionable strategic and industrial logic. We continue to believe that our offer is full and fair, providing substantial value to Alcan’s shareholders.”

Alcoa has proposed that the merged company would have dual headquarters in New York and Montreal, with strategic management functions in each city. Montreal would become the headquarters for the global primary products business.

According to Alcoa, in 2006 the combined company’s alumina capacity would have been approximately 21.5 million tons and its aluminum capacity would have been 7.8 million tons. 

Wheeling-Pitt Reports
1Q Loss of $59.9 Million
Wheeling-Pittsburgh Corp., Wheeling, W.Va., reported a net loss of $59.9 million during the first quarter of 2007, compared to a loss of $2.1 million during the same period in 2006.

Steel shipments for the first quarter of 2007 totaled 603,893 tons or $659 per ton vs. 620,668 tons or $680 per ton for the first quarter of 2007. Net sales for the first quarter of 2007 totaled $397.7 million as compared to net sales of $437.0 million for the first quarter of 2006. Net sales for the first quarter of 2006 included $14.8 million from the sale of coke to the company’s joint venture partner.

“The company’s first quarter results were significantly impacted by a very low January production level, which was a result of the anemic order book inherited in December 2006,” said James P. Bouchard, chairman and CEO.  “The loss, while a bit higher than expected, includes approximately $4 million in accruals for a workforce reduction implemented in March. The eventual reduction of over 90 salaried employees represents an important step in improving the cost competitiveness of Wheeling-Pitt as it is expected to save approximately $9.0 million on an annualized basis.”

Company officials said the decrease in net sales compared to the first quarter of the previous year was due to a decrease in the volume of steel products sold and an average selling price decline of $21 per ton. This reflects lingering effects from the service center inventory overhang, as well as the absence of coke revenue in first-quarter 2007 due to deconsolidation of the Mountain State Carbon joint venture, effective Jan. 1.

Bouchard said Wheeling-Pitts’s proposed combination with Esmark has entered the review process with the Securities and Exchange Commission. He expects the transaction to close during the summer.

Kaiser Reports Record
Sales in First Quarter
Kaiser Aluminum Corp., Foothill Ranch, Calif., reported net income of $17 million for first-quarter 2007, down from the $38 million posted during the same period in 2006.

Net sales for the first quarter increased 17 percent to $392 million, compared to $336 million for the first quarter of 2006. The company attributes the increase to the pass-through to customers of significantly higher metal prices, as well as improved value-added pricing in fabricated products.

“The company continues to deliver strong results, led by robust demand for aerospace and defense applications partially offset by soft demand in ground transportation and other industrial applications for fabricated products,” said Jack A. Hockema, Kaiser chairman, president and CEO.

The company credited recently added capacity for record heat-treat plate shipments for the fifth consecutive quarter. Two heat-treat plate furnaces in the Trentwood expansion became operational during the quarter.

“The project remains on schedule, and in early 2008 we expect the new stretcher and third heat-treat furnace to provide additional product capabilities and further increase capacity,” Hockema said.

Revenue Up, Profit Down
at Aleris in First-Quarter
Aleris International Inc., Beachwood, Ohio, reported revenues of more than $1 billion during the first quarter, but a heavy impact from special charges resulted in a net loss of $53.1 million. Aleris totaled first-quarter revenues of $1.6 billion, up 88.7 percent from the same quarter in 2006. The revenue boost was driven by the August 2006 acquisition of Corus Group plc.

“Our plan to diversify our portfolio through acquisition has begun to pay off,” Chairman and CEO Steven J. Demetriou told investors and analysts. “While the North American economy has slowed in early 2007, we’ve experienced very strong results in Europe along with our continued excellent execution related to the integration of our previous acquisitions and company-wide productivity initiatives.”

The company’s net loss of $53.1 million was fueled by a $66.7 million charge for the recording of previously acquired assets at fair value. Another $7.2 million was the result of restructuring and other charges.

“In light of some volume weakness in the U.S., we are aggressively focusing on productivity improvements and reduction of working capital to ensure optimization of earnings and cash flow targets,” Demetriou said. “We remain pleased with the stability of margins in the North American Rolled Products business given the temporary reduced demand.”

Algoma’s Income Declines
Despite Increase in Sales
Algoma Steel Inc., Sault Ste. Marie, Ontario, reported net income of $23.1 million (Canadian) for the first quarter, down from the $50.4 million posted in the fourth quarter. It was also 41.6 percent behind the $32.7 million recorded during the same quarter of 2006.

Officials cited lower average selling prices and higher natural gas and iron ore costs for the decrease.

“The impact of a return to stronger sales volumes was mitigated by pricing that averaged $22 per ton lower than the previous quarter as price increases did not take full effect until late in the quarter,” said Denis Turcotte, president and CEO. “Manufacturing costs in the quarter were impacted by a 7 percent decline in raw steel production as compared to the prior quarter, due primarily to unplanned downtime in our steelmaking operations.

Sales for the first quarter of 2007 were $479.5 million, $61.1 million higher than the previous quarter and $20.1 million lower than the comparable period in 2006. The increase from the previous quarter was the result of significantly higher shipments, partially offset by lower average selling prices.

“We are confident going into the second quarter as volumes remain strong, price realizations are increasing consistent with industry trends and our production levels have returned to more normalized levels,” Turcotte said.

Briefs
Five U.S. producers of steel nails have filed antidumping duty petitions alleging that dumped imports of nails from China and the United Arab Emirates are causing material injury to the domestic industry. The petitioners allege antidumping margins of 59 percent to 136 percent for China and 98 percent to 114 percent for the UAE. The producers filing the complaint were Mid Continent Nail Corp., Poplar Bluff, Mo.; Davis Wire Corp., Irwindale, Calif.; Gerdau Ameristeel Corp. (Atlas Steel & Wire Division), Tampa, Fla.; Maze Nails, Peru, Ill.; and Treasure Coast Fasteners Inc., Fort Pierce, Fla.

Shareholders for Atlanta-based Novelis Inc. overwhelmingly approved the planned acquisition by India’s Hindalco Industries Ltd. Under the terms of the deal, Hindalco, through its subsidiary AV Metals Inc., will acquire Novelis for $44.93 per common share in cash. The deal is estimated at $6 billion, including the assumption of debt. Novelis will serve as a subsidiary of Hindalco.

North American Stainless recently completed the installation of two Red Bud precision multi-cut blanking lines at its Minooka, Ill., and Pendergrass, Ga., locations. Both lines are designed to process 0.130-inch thick, 60-inch wide stainless steel coils “mark free” with Red Bud’s dual motor grip feed system.

Behringer Saws Inc., Morgantown, Pa., has finished its first Behringer Saw completely assembled in the United States. Behringer has been supplying German-engineered manufactured horizontal and vertical band saws to the U.S. market for 20 years. “Since we have been building material handling systems and conveyors here in Pennsylvania for many years, the transition to machine assembly was a natural progression, and an excellent utilization of the skill sets we have in our company,” says Joe Dick, president Behringer Saws USA. The company plans to expand its Morgantown facility to accommodate the assembly process.

The Hampton Company, Plano, Texas, has been named as Trumpf’s new machine tool distributor for Louisiana, representing Trumpf’s line of fabricating machinery. Trumpf has also named BGI as its new machine tool distributor in 16 counties in Central Michigan.

Metal Management Inc., Chicago, has acquired the assets of Mars Industries Inc., a full-service metals scrap processor and supplier serving the Detroit area. Mars handles approximately 360,000 tons of ferrous scrap metals per year.

Novelis Inc., Atlanta, has launched an updated online ordering tool and expanded its web offerings for internet orders. Access Novelis from the company’s specialty products group has added new features to simplify the process of ordering common aluminum alloys from its stocks at www.ipg.novelis.com.

Gerdau Ameristeel Corp., Tampa, Fla., has reached an agreement with the United Steelworkers at its Manitoba mill. The five-year contract went into effect May 24.

Sandmeyer Steel Co., Philadelphia, has appointed ITC Group as the company’s representative office and sales support center in China. ITC, with offices in Guangzhou and Hong Kong, will assist Sandmeyer in penetrating the Chinese market for stainless steel and nickel alloy plate products.

Can Art Aluminum Extrusions Inc., Windsor, Ontario, has selected Granco Clark to supply heating and handling equipment for its new 3,300-ton press line. A hot jet billet furnace will provide heating for the line with the intent to process 9-inch diameter billets, while also accommodating a billet taper quench.

People
Retired Nucor executive Robert W. Johns has been named the recipient of the American Iron and Steel Institute’s Market Development Achievement award. Johns was honored for his contributions in advancing the applications of steel in the construction market.

Roger Allen has been appointed a commissioner for the Port of Longview, replacing the retired Larry Larson. He will serve as port commissioner until November, when he will seek election for the remaining two years of a six-year term.

David Kornblatt has resigned as senior vice president of finance and chief financial officer of Carpenter Technology Corp., Wyomissing, Pa. Richard L. Simons, vice president and corporate controller, was appointed interim CFO until a permanent successor can be found. 

Mark Overmann Jr. has been hired as chief metallurgist at National Bronze & Metals, Lorain, Ohio. Overmann has more than 21 years of experience as a metallurgist and process engineer, working in the defense, aerospace and automotive industries.

Jason Richter has been hired as architect specialist for Ohio Gratings Inc., Canton, Ohio. He will be responsible for managing architectural sales accounts, monitoring quality standards and assisting with promoting the architectural metal products division.

Obituary: Zbigniew Uzarowicz
Zbigniew Uzarowicz, senior vice president of Independence Tube, died on May 19 at the age of 75. Uzarowicz was born in Poland, was deported to Russia in 1940 with his mother and brothers, and later served in the Polish Army.

He spent 18 years as a manual worker in the steel industry while studying to be an electrician. He came to Chicago in 1968, and began work at Independence Tube in 1972.

He is survived by his wife Betty and two children, Teresa and Piotr, plus numerous grandchildren.