World crude steel production for the 65 countries reporting to the World Steel Association (worldsteel) was 131 million tonnes (Mt) in November 2014, a 0.1% increase compared to November 2013.

China’s crude steel production for November 2014 was 63.3 Mt, a slight decrease of -0.2% compared to November 2013. Elsewhere in Asia, Japan produced 9.2 Mt of crude steel in November 2014, a decrease of -1.1% compared to November 2013. South Korea produced 5.9 Mt of crude steel in November 2014, up by 5.5% on November 2013.

In the EU, Germany produced 3.6 Mt of crude steel in November 2014, a decrease of -1.9% compared to November 2013. Italy produced 1.9 Mt of crude steel, down by -13.9% on November 2013. France’s crude steel production was 1.4 Mt, an increase of 5.8% compared to November 2013. Spain produced 1.2 Mt of crude steel, down by -1.9% compared to November 2013. Turkey’s crude steel production for November 2014 was 2.8 Mt, down by -8.6% on November 2013.

In November 2014, Russia produced 5.8 Mt of crude steel, up by 5.8% over November 2013. Ukraine produced 1.8 Mt of crude steel, a decrease of -28.6% compared to the same month 2013.

The US produced 7.2 Mt of crude steel in November 2014, an increase of 1.5% compared to November 2013. Brazil’s crude steel production for November 2014 was 2.8 Mt, up by 2.4% on November 2013.

The crude steel capacity utilisation ratio for the 65 countries in November 2014 was 73.5%. It is -2.5 percentage points lower than November 2013. Compared to October 2014, it is -1.2 percentage points lower.

Global Stainless Steel Production Up 9% in First Nine Months of 2014

The International Stainless Steel Forum (ISSF) has released figures for the first nine months of 2014 showing that stainless steel melt shop production increased by 8.9% year–on–year to 30.9 million metric tons. Production increased in all regions except for Central and Eastern Europe.

Stainless and heat-resisting melt shop steel production [‘000 metric tons]

Region	Quarter			+/- %	9 Months		+/- %
	1/2014	2/2014	3/2014	q-o-q	2013	2014	y-o-y
Western Europe/Africa	2,164	2,111	1,682	-20.3%	5,683	5,958	4.8%
Central/Eastern Europe	71	72	70	-2.3%	215	213	-1.0%
The Americas	670	717	711	-0.8%	1,824	2,097	15.0%
Asia (w/o China)	2,234	2,216	2,161	-2.5%	6,487	6,611	1.9%
China	5,084	5,603	5,336	-4.8%	14,176	16,022	13.0%
Total	10,223	10,718	9,960	-7.1%	28,385	30,900	8.9%

U.S. Steel Imports Decline for First Time in Three Months

U.S. steel imports fell by more than 18% in November, marking the first decline in three months, according to analysis from the American Institute for International Steel (AIIS).

While November’s 3.63 million net tons of imports were 18.2% lower than the October total, they were still more than 40% higher than in November 2013. Imports from Brazil showed the largest decline from October, falling nearly 39% to 396,000 net tons. The United States’ North American Free Trade Agreement (NAFTA) partners also recorded decreases, almost 26% to 263,000 net tons from Mexico, and nearly 14% to 471,000 net tons from Canada. Imports from both countries remained above their levels from a year earlier, though. China, Russia, and South Korea also showed sharp month-to-month decreases while staying above the levels of a year earlier. Imports from the European Union, however, increased 17.3% from October – and 70.6% from last November – to 713,000 net tons.

Notwithstanding the November dip, year-to-date imports of 40.64 million net tons are more than 37% higher than the first 11 months of 2013. Imports from Russia have led all countries in growth, with purchases of steel from that nation swelling more than two-and-a-half-fold to 4.31 million net tons this year. Imports from the E.U. have jumped 45.6% to 6.46 million net tons, while South Korea has sold 44% more steel to the U.S. this year, bringing its total to 5.06 million net tons. Imports from China are up 68.5% on the year, Brazil 21.5%, Mexico 17.4%, and Canada 9%.

Semi-finished imports increased 11.4% over last November to 756,000 net tons. Year-to-date, they are up by nearly one-third to 8.91 million net tons.

No one should be surprised that the United States is importing much more steel this year, AIIS said. As The Wall Street Journal noted on 24 December 2014, the economy is gaining momentum, growing at a 5% seasonally adjusted annual rate in the third quarter, its most robust advance in 11 years. Economic growth spurs demand for steel. With domestically produced steel selling at much higher than global prices, expansion-minded companies naturally are looking to buy beyond the border. This value-oriented approach maximizes efficiency, frees up more money for capital investment, job growth, and wage increases, and promotes continued economic expansion, AIIS said.

Iron Ore Price Surges 5% on Chinese Stimulus Measures

The iron ore price roared ahead at the end of 2014 with Northern Chinese import prices surging nearly 5% on an improving outlook for the Chinese economy in 2015. Iron ore lost 50 per cent of its value in 2014, falling below $67 (U.S.) a tonne, attributable to weak demand from China and a supply surplus. The world’s biggest producers, Rio Tinto Group, BHP Billiton Ltd., Vale SA and Fortescue Metals Group continued to increase production, despite the low prices for the steel-making ingredient.

The 62% Fe benchmark import price including freight and insurance at the port of Tinjian tracked by The SteelIndex added $3.30 or 4.9% to $71.20 a tonne, the highest since November 18. The price of the steelmaking raw material has now climbed back 8.5% since hitting levels last seen May 2009. Despite the slowest growth rate since 1990, China would still be adding some $700bn to GDP in 2015.

Iron ore's resurgence is thanks to stimulus measures announced by the People's Bank of China over the weekend that is set to free up some $800 billion in funds available for loans at commercial banks. On top of the new lending and bank deposition rules, interest rates in the world's second largest economy is also on course for further cuts in the new year while the scrapping of housing purchase limits targets the troubled property sector directly.

China imports more than two-thirds of the global seaborne trade expected to hit 1.4 billion tonnes in 2015 and forges nearly as much steel as the rest of the world combined.

The country's decades long urbanization push and construction boom has made it the driving force behind commodity price rises over the last decade or more.

But growing fears of a property bubble and overinvestment in infrastructure, coupled with a flood of new iron ore supply, have seen prices slide 47% since the start of the year.

Beijing is attempting to accelerate the slowest GDP growth rate in decades, expected to hit 7% in 2015. Despite the tepid economy, the country would still be adding some $700 billion to gross domestic product in 2015 (excluding Hong Kong).

AMERICAS

U.S. Steel Idles Ohio Plant That Makes Pipes for Oil Exploration, Drilling

Citing the collapse in global oil prices, U.S. Steel Corp. will idle its plant in Lorain, Ohio, laying off 614 workers, a company spokeswoman said in January, the Wall Street Journal reports.

The plant makes steel pipe and tube for oil-and-gas exploration and drilling. With oil prices currently around $50 a barrel, their lowest level since 2009, energy companies have far less incentive to drill for new supply, reducing demand for the plant’s products.

“The company has suddenly lost a great deal of business because of the recent downturn in the oil industry,” Tom McDermott, president of United Steelworkers local 1104 wrote to workers, in a letter reviewed by The Wall Street Journal. “What appeared just a few short weeks ago as being a productive year, [with new hires in December and extra turns going on], has most abruptly turned sour.”

Layoffs will begin on March 8, “with additional layoffs occurring through May 2015,” a U.S. Steel official wrote to the union.

The so-called oil country tubular goods, or OCTG, industry has been built up massively in the past few years to provide pipe and tube for the boom in drilling for shale gas and new oil in the Gulf of Mexico.

U.S. Steel, which is trying to reverse five straight years of losses, has bet heavily on OCTG. The company’s tubular division posted an operating profit of $140 million during the first nine months of 2014, up from $23 million over the same period in 2010.

Oversupply in the market has been exacerbated by huge flows of steel imports into the U.S. Overall steel imports rose 35% to 38 million tons during the first 10 months of 2014, according to Global Trade Information Services.

Last summer, U.S. Steel and others won import tariffs on imports of OCTG from South Korea and other exporting countries. But that won’t be enough to prop up the industry amid falling oil prices.

Magnetation Announces First Production at New Iron Ore Concentrate Plant

Magnetation LLC has successfully produced its first iron ore concentrate at its new plant, Plant Four, located near Grand Rapids, Minn. Magnetation said the new plant has begun operations one quarter ahead of schedule and three quarters ahead of the original project schedule.

"The Plant Four design and construction effort is one of the finest project executions I have seen in my 40 years in the industry. Despite significant weather and engineering challenges, the Plant Four team along with our contractor partners has achieved first concentrate production less than ten months after the first concrete pour. The project was completed in world class speed with no lost time accidents," said Larry Lehtinen, CEO of Magnetation. "Plant Four will be our largest concentrate production plant and we expect that it will also be our lowest cost concentrate operation. We anticipate it being a flagship operation providing high paying jobs on the Iron Range for many decades to come."

Plant Four will have a production capacity of 2.0 million metric tons of concentrate per year once it's fully operational. The iron ore concentrate from Plant Four will supply Magnetation's new pellet plant facility located in Reynolds, Ind., which began operating in September 2014. Magnetation now employs approximately 500 people between its Minnesota and Indiana operations.

Magnetation LLC is a joint venture between Magnetation Inc. (50.1% owner) and AK Steel (49.9% owner). Magnetation LLC recovers high-quality iron ore concentrate from previously abandoned iron ore waste stockpiles and tailings basins. Magnetation LLC owns three iron ore concentrate plants located in Keewatin, Bovey, and Grand Rapids, Minn., and a 3.0 million metric ton per year iron ore pellet plant in Reynolds, Ind.

Minnesota Pellet Project on Track for 2015 Production

Essar Steel Minnesota reported in late October that construction of its 7-million-mt/y iron-ore mining, crushing, and pelletization project near the town of Nashwauk on the western end of the Mesabi Iron Range in northern Minnesota was 50% complete and remained on schedule to start pellet production in the second half of 2015. When completed, the $1.8 billion project will include an open-pit iron ore mine; crushing, concentrating and pelletizing facilities; and a rail line and train-loading system.

Essar Steel Minnesota is a subsidiary of Essar Steel, a multinational steelmaker headquartered in Mumbai, India. The Minnesota project has an aggregate of approximately 2 billion mt of measured, indicated, and inferred magnetite iron resources, of which approximately 1.7 billion mt are classified as proven and probable reserves.

Essar Steel Minnesota stated that it expects to be the lowest-cost producer of taconite pellets in North America and will be the only pellet producer in the United States to have the flexibility and production capability to produce standard blast furnace pellets as well as fluxed and DR grade pellets. Through firm long-term off-take agreements in place with ArcelorMittal USA and Essar Steel Algoma, Canada, Essar Steel Minnesota already has customers committed over the long-term to purchase its entire 7 million mt/y of planned production.

The Essar Steel Minnesota project has access to rail lines serviced by Burlington Northern Santa Fe Railway and Canadian National Railway. In addition, the project has the option to export to customers in the future via the Atlantic Ocean by transshipping through the St. Lawrence Seaway to the ocean-loading port of Quebec City.

The Essar Steel Minnesota project area totals approximately 19,000 acres, of which 4,360 acres are mineral lease land. Environmental permits are in place for construction and operation of the project.

Cliffs Closes Bloom Lake Iron Ore, Sells Coal Assets

Cliffs Natural Resources (NYSE:CLF) announced recently that active production at its Canadian Bloom Lake iron ore mine has completely ceased as the firm continues its plans to exit Eastern Canada.

The company, which is the U.S.’s biggest iron ore miner, also said it has conclude the sale of part of its struggling coal division for $174 million, in cash, to Coronado Coal II LLC.

The Cleveland-based miner's move aims to fully exit higher-cost operations to focus only on its iron ore business in the U.S. As most of its peers, Cliffs has been struggling as a consequence of tumbling prices for iron ore and metallurgical coal, triggered by a slowdown in the Chinese steel industry.

Thyssenkrupp Metallurgical Concludes Off Take Agreement with Niocorp

ThyssenKrupp Metallurgical Products last month has expanded its product portfolio and concluded an off take agreement for ferro niobium, a rare heavy metal, with NioCorp Developments Ltd.

Under the 10 year agreement, ThyssenKrupp Metallurgical Products will purchase 3,750 tonne of ferroniobium per year, which equates to approx. 50% of NioCorp's total production. Niobium is mainly used in metallurgy in the manufacture of special steels and to improve weldability.

This off take agreement makes the raw material trading experts the exclusive European distribution partner to NioCorp, which is developing the only primary niobium deposits in the USA at its Elk Creek project in Nebraska. The term of the agreement is scheduled to begin in 2017 when production starts.

With the conclusion of the off take agreement, ThyssenKrupp Metallurgical Products has also acquired the unilateral option of purchasing warrants for USD 5 million at the current price of CAD 0.67 each within 1 year.

Kai-Norman Knotsch, chairman of the Management Board of ThyssenKrupp Metallurgical Products said, “As there are very few suppliers of niobium and NioCorp is developing the only deposits in the USA, this is a highly attractive product for us. We are looking forward our future cooperation and hope to develop new sales markets in Europe as a result.”

Mark Smith, CEO of NioCorp said, “We are extremely pleased to have one of the world's leading commodity trading companies as a significant customer. Our team looks forward to building a long-term and mutually beneficial relationship with ThyssenKrupp Metallurgical Products.”

Nucor Completes Acquisition of Gallatin Steel Company

Nucor Corporation (NYSE: NUE) announced recently that it has closed on its purchase of all the equity of Gallatin Steel Company for approximately $770 million.

"We are pleased to welcome the Gallatin team to the Nucor family. This addition will allow us to better serve our customers by offering them a wider range of products and further enhancing our reliability," said John Ferriola, Chairman, CEO and President of Nucor Corporation. "The timing of the closing is beneficial as it enables us to capitalize on synergies between the two companies during the current contract negotiation season for raw materials, alloy and consumables and steel sales."

Nucor Steel Gallatin has an annual capacity of approximately 1,800,000 tons, increasing Nucor's total flat-rolled production to about 13 million tons annually. The acquisition strengthens Nucor's position serving flat-rolled customers in the growing pipe and tube segment.

The mill's location on the Ohio River expands Nucor's footprint in the Midwest market, which is the largest flat-rolled consuming region in the U.S, and gives the company access to all the key markets on the U.S. river system. The mill also complements Nucor's raw materials strategy with its ability to receive DRI from the company's plant in Louisiana.

John Farris has been named Vice President and General Manager of Nucor Steel Gallatin. Farris previously served as Vice President and General Manager of Nucor Steel Texas, a bar mill in Jewett.

Adjusting for the net present value of the anticipated tax benefits, the realized effective purchase price for Nucor is approximately $630 million. The purchase is expected to be immediately accretive to cash flow and accretive to earnings after working through purchase accounting-valued finished goods inventories.

Nucor and affiliates are manufacturers of steel products, with operating facilities primarily in the U.S. and Canada. Products produced include: carbon and alloy steel -- in bars, beams, sheet and plate; steel piling; steel joists and joist girders; steel deck; fabricated concrete reinforcing steel; cold finished steel; steel fasteners; metal building systems; steel grating and expanded metal; and wire and wire mesh. Nucor, through The David J. Joseph Company, also brokers ferrous and nonferrous metals, pig iron and HBI/DRI; supplies ferro-alloys; and processes ferrous and nonferrous scrap. Nucor is North America's largest recycler.

ASIA

SAIL Seeks Odisha Government's Support to Expand Capacity for Rourkela Plant

With an aim to expand the capacity of its Rourkela Steel Plant (RSP), SAIL has sought Odisha government's support for its raw material requirements in the coming days. "We have plans to invest Rs 30,000 crore to Rs 35,000 crore for expansion of RSP's capacity from 4.5 mtpa to 10 mtpa by 2025-26. Therefore, we require adequate iron ore and seek support of the Odisha government," SAIL Chairman CS Verma told reporters after attending the review meeting by Union Steel Secretary Rakesh Singh.

The Maharatna PSU has already undertaken expansion of its 2 mtpa steel plant at Rourkela to 4.5 mtpa by investing Rs 12,000 crore, Verma said, adding that it plans to further expand the capacity of RSP, which has the biggest blast furnace of 460 cubic meter capacity in the country.

SAIL, which already has two major iron ore reserve clusters at Balani and Barsuan, now seeks more such raw material linkage in view of its proposed expansion. Replying to a question, Verma said the company is presently working out how much more iron ore would be required after expansion of its RSP project. "We hope the state government will support and provide the required amount of raw material," he said.

The steel and mines department of Odisha government has, however, estimated that iron ore mines with SAIL have the total reserve of 512 mt against its requirement of 480 mt over 30 years after expansion of RSP's capacity to 10 mtpa.

On SAIL's proposed acquisition of Nilachal Ispat Nigam Limited at Kalinga Nagar in Odisha, Verma said the company is keen to acquire the facility. "The major stake lies with MMTC under the Ministry of Commerce. If SAIL is given adequate stake, it would be able to run NINL," he said.

Hebei Looks to Relocate Its Largest and Most Polluting Industries Abroad

Hebei Province is attempting to shift its heavy industries overseas, Global Times recently reported. With larger steel production capacity than Japan, Hebei is home to the most polluted cities in China.

China's largest overseas iron and steel project was officially launched this September, when China's biggest steel maker, Hebei Iron & Steel Group (HBIS), and South Africa's Industrial Development Corporation signed a memorandum of understanding in Beijing.

The project, with HBIS's expertise and ability to operate steel-making facilities, says it will be located in South Africa's Limpopo province and supply steel at competitive prices in South Africa's downstream steel processing industry, currently constrained by uncompetitive steel prices and a lack of certain steel products.

By 2017, the iron and steel facility in South Africa is expected to churn out 3 million tons in production each year. Two years later, the production capacity will grow to 5 million tons.

Yu Yong, CEO of HBIS, said at the signing ceremony, "We will try to make the international market a new growth point for the company."

The project is just the latest indication of the northern province of Hebei's ambitious plans to relocate steel, cement and glass factories to countries in Africa, South America, East Europe and the rest of Asia, pressured by overcapacity in the domestic market and growing concerns over industrial pollution.

According to a Hebei Province government notice issued last month, by 2017, it plans to move capacity for 5.2 million tons of steel, 5 million tons of cement and 3 million units of glass abroad. The targets for 2023 is more ambitious, with capacity for 20 million tons of steel, 30 million tons of cement and 10 million units of glass waiting to be relocated abroad.

Many projects are already underway. In the following two years, Hebei's State-run companies will help set up a 600,000 ton steel project in Thailand, a 350,000 ton capacity steel facility in Indonesia and a 1.5 million ton iron powder factory in Chile. On the cement front, two one-million ton capacity projects, one in South Africa and one in Myanmar, will be established with investments from the Tangshan-based Jidong Development Group and its local partners.

HBIS's acquisition of a controlling stake in Swiss-based steel trader Duferco this November is another sign that the province will expand overseas investment.

The choice of going abroad is largely driven by China's domestic production cut after years of overproduction and a glut in the market that has seen steel prices fall to drastic new lows.

China now produces half of the steel in the world. According to a report by the World Steel Association, China produced 779 million tons of crude steel in 2013, accounting for 48.5 percent of the world's total.

"Steel production is China's most competitive industry in the global market. From planning to production to management, every step of the industry is highly efficient," said Li Xinchuang, deputy secretary general of the China Iron and Steel Association and head of the China Metallurgical Industry Planning and Research Institute.

Hebei produces the most steel in China. The province produced a quarter of the country's crude steel in 2013, statistics from the Hebei Metallurgical Industry Association shows. That's more than the entire production of Japan, the second largest steel producing country in the world after China.

Apart from steel, cement and glass production have also been the driving forces of Hebei's economy. The three industries contribute to almost a third of the province's GDP, part of China's construction-fuelled decades of growth.

But they are also regarded as major sources of pollution in China's highest emitting province. According to Hebei's Department of Environmental Protection, steel, electricity, cement and glass industries account for 65 percent of the province's sulfur dioxide emissions and 61 percent of its smoke and dust emissions.

Last September, China's environmental department, along with five other national authorities, issued detailed rules on fighting pollution. Hebei, home to the most polluted cities in China, was its main target. According to the rules, Hebei should cut 60 million tons' production of steel, 61 million tons' production of cement, 40 million tons' coal and 36 million weight cases of glass by 2017. The amount is about a third of Hebei's annual production. In an interview with China Central Television, Zhang Qingwei, governor of Hebei Province, said, "If an extra ton of steel is produced, local officials will have to take responsibility and be sacked."

Hebei's economy is already feeling the power of Beijing's campaign. Since last year, a province-wide campaign has seen over 8,000 companies closed, 35,000 coal-burning furnaces demolished and cement production to shrink by 22 million tons. "For each 10 million tons' cut of steel production, steel companies lose 30 billion yuan and thousands of people lose their jobs," Zhang Qingwei told People's Daily this June.

In the first half of this year, Hebei's annual economic growth was a mere 5.8 percent, last but one of China's 31 provinces and regions.

Guo Bing, environment professor at Hebei University of Science & Technology and a member of Hebei's Chinese People's Political Consultative Conference, is a staunch supporter of Hebei factories going abroad and said the economic downturn from the steel cut can be partially made up by the international investment of Hebei's factories.

"The 60 million ton cut in steel production is going to have a profound impact on Hebei's economic development. The space for development in Hebei is small due to environmental constraints. And yet as one of the most important industries in Hebei, we cannot allow it to stop developing," he said. "This applies to the cement and glass industries as well."

"This is why we have to let them go abroad, to countries where this production is most needed."

Guo said moving factories to countries in Africa and East Europe also saves shipping costs for iron ores and other raw materials, since China previously had to import them from these countries for the production of steel.

EUROPE

ArcelorMittal Invests $7m for New Dust Filters at Zenica Steel Plant

ArcelorMittal Zenica, the steel producer located in Bosnia and Herzegovina (B&H), recently announced the start of a major project to install advanced new dust filters in its basic oxygen furnace (BOF) Steel Plant.

Using “Best Available Techniques”, the BOF secondary de-dusting system is the latest in a series of technical investments aimed at reducing the ecological impact of the plant, which was restarted in 2008 following almost two decades of disuse after the conflict of the 1990s. Work on the new filters is expected to be completed by early 2016.

The BOF Steel Plant project follows the successful completion in November 2013 of a US$8m investment in filters at the site’s blast furnace, and brings the company’s total investments in ecological projects at Zenica to more than US$6m since 2005.

When fully operational, the BOF secondary de-dusting system will meet all relevant B&H and EU standards and eliminate visible ‘red dust’ emissions from the plant. More than 95% of fumes from production operations will be captured and cleaned in the bag filter, which will result with dust emissions below 10 mg/Nm3.

ArcelorMittal Provides 310,000 Tonnes of Steel for Gas Pipeline to Europe

To enable the construction of one of the largest oil and gas pipelines in the world – the Trans Anatolian Natural Gas Pipeline (TANAP) – ArcelorMittal is providing 310,000 tonnes of hot rolled coils from its production site in Bremen, Germany, more than one third of all the hot rolled coils needed for the TANAP project. It is also the largest order ever placed with ArcelorMittal Europe – Flat Products, by a company in the oil and gas industry.

TANAP is a 2000km natural gas pipeline that will cross Turkey, from the Shah-Deniz field in Azerbaijan to the European border, helping to secure the supply of energy to Europe.

Construction is expected to be complete by 2018, at a total cost of around US$7bn. Once complete, the new pipeline will be able to transport more than 16 billion cubic metres of natural gas a year.

"We have provided steels for the global oil and gas pipeline industry for more than 30 years. ArcelorMittal has a proven track record in this field ensuring proximity to the customer and continuous technical support - in combination with the high quality products provided by our mill in Bremen", said Stéphane Tondo, chief marketing officer for packaging and energy pipes at ArcelorMittal Europe - Flat Products.

"This is an exciting and challenging project for us. Deliveries will start in 2015 and last for two years. It is the largest single order ever for Bremen - it shows our ability to supply the required high quality products, and to ensure punctual delivery. It also underlines ArcelorMittal`s commitment to Bremen", added Dietmar Ringel, CEO of ArcelorMittal Bremen.

The TANAP pipeline will be subject to very high operating pressures and atmospheric conditions along its route. The latest technologies have therefore been applied on this project, using ArcelorMittal`s innovative steel products. The steel used is an X70, high-end grade for pipeline applications that has a very high thickness - Bremen is one of the few mills in the world that can make this product.

Italian Government Steps in to Save Ilva Steel Plant

The Italian government is intervening in the management of Europe's biggest steel plant, in an attempt to reform the beleaguered business. A commissioner will be appointed to manage the site in Taranto and could have the task of preparing its sale.

Ilva, which is a major employer in southern Italy, has faced criticisms over its environmental record. Toxic emissions from the Ilva plant have been blamed for unusually high rates of cancer in the area.

Privately-owned by Gruppo Riva, Ilva is Europe's biggest steel plant in terms of output capacity and employs at least 14,000 people. The plant has been making a loss for years and was placed in special administration last year.

The European Commission said in October that the Tamburi area of the town in particular was contaminated and urged the government to take action. Italy's Prime Minister Matteo Renzi said that the government would consider nationalising the plant and selling it on, if a buyer could be found who promised to protect jobs.

The international steel giant ArcellorMittal has reportedly expressed an interest in acquiring Ilva.

The plant, owned by the Riva family, was partially closed in 2012 because of the high levels of pollution.

Tosyali and Toyo Kohan Break Ground for USD 500m Steel Unit in Turkey

Hurriyet Daily News reported that Turkey’s Tosyalı Holding and Japan’s Toyo Kohan held the ground breaking ceremony for a new flat steel production facility in the southern province of Mersin on January 3, in an investment worth over USD 500 million.

Some 51% of the huge new facility is owned by Tosyalı Holding and 49% by Toya Kohan. The facility, which covers an area of 250,000 square meters in the organized industrial zone of the Osmaniye district in Mersin, is Tosyalı Holding’s 17th such facility, after recent investments in Montenegro and Algeria. The group aims to create a total of 10,000 jobs over the next three years.

The production of Turkey’s highest added value flat steel will start in 20 months.

Tosyalı Holding Chairman Mr Fuat Tosyalı said “Our aim is to decrease Turkey’s dependency on foreign countries in high tech steel products. We plan to produce such products with higher added value in Turkey. We’ll be creating over USD 300 million of additional annual export income to Turkey after the facility is completed.”

He added that the products made at the facility will primarily be for the electronic and electrical sectors, followed by the construction and mechanical sectors.

Tosyalı Holding made exports worth a total of around USD 550 million in 2014 and aims to reach USD 805 million in exports in 2015.

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