TPT January 2011

G lobal M arketplace trucks had been assembled at a factory at Tullamarine in Victoria, but Caterpillar advised the union that it was closing down the facility before the New Year. The AMWU national secretary Dave Oliver said that the production was to be shifted to Mexico. He told ABC Rural, “This unfortunately highlights the pressure that manufacturing is under now by an appreciated Australian dollar.”

a 50% stake in the plant; POSCO, 30%; Dongkuk Steel Mill, 20%. Construction is to begin early this year, with production set for two phases: 3 million tons of steel slabs initially, then 6 million tons. Vale, one of the world’s largest producers and exporters of iron ore and pellets, has said it will spend some $24 billion on projects in 2011. POSCO has recently sought growth through joint ventures with Krakatau Steel, of Indonesia; the acquistion of Daewoo International, the South Korean conglomerate; and the purchase of stakes in Australian iron ore and coal mines. Dongkuk Steel Mill manufactures steel plates, beams, sections and bars. According to the World Steel Association, global demand for steel will show an increase of 13.1% for 2010, after contracting by 6.6% in 2009. In 2011, demand is forecast to grow by 5.3% to reach a record 1,340 million metric tons.

EADS adjusts its heading

The largest aerospace and military contractor in Europe looks toward emerging-market countries for its future growth

“EADS was created as a European company, exporting mainly to European countries and to the United States. Now we are in a new world. We know growth in our company will not come from Europe or the United States. Growth will come from emerging countries.” The speaker was Louis Gallois, chief executive of European Aeronautic Defense & Space, parent company of Airbus. The occasion was an interview in Paris with the International Herald Tribune , in advance of the 12 November publication of EADS’s third-quarter results, in which Mr Gallois echoed the strong view of President Nicolas Sarkozy that emerging markets are key to securing Europe’s future prosperity. In reference to EADS specifically, Mr Gallois said that shrinking military budgets and lacklustre growth in civilian air traffic in the West was requiring the group to shed some of its European identity. In fact, Mr Gallois told the Tribune ’s Nicola Clark, he hoped to appoint at least one top manager from Asia to the EADS executive committee by 2013. Another of his goals is the creation of an Asian headquarters on a par with EADS’s considerable North American outpost in Washington. (“EADS Chief Sees Future in Emerging Markets,” 12 November) Lakshmi N Mittal, the Indian-born founder and chief executive of Luxembourg-based ArcelorMittal, which has steel making operations in 20 countries on four continents, joined the EADS board as an independent director in 2007. Mr Gallois told the Tribune that Mr Mittal’s presence was helping EADS “to change our mind-set, because he is not thinking locally.” EADS has already seen the benefits of its emerging-market thrust, notably an $8 billion sale to China, announced in November, of 66 new Airbus jets. This was the latest in a string of major deals in 2010 that included an $11 billion order by the airline Emirates for 32 Airbus A380 jets, bringing the Dubai-based carrier’s commitment to 90 of the superjumbo planes.

Dannemora Mineral AB have signed another big deal with ArcelorMittal

Steel › Dannemora Mineral AB, of Sweden, in October signed a second agreement with Luxembourg-based ArcelorMittal, this one for delivery of 10,000 metric tons of iron ore. Earlier in the year, the companies concluded an agreement for 15,000mt of another grade of ore, also scheduled for delivery by the end of 2010. The product of the revived mine, which was worked at least as early as the 15 th Century, was slated for a full-scale trial at ArcelorMittal’s plant in Bremen, Germany. The world’s largest steel company is not the sole customer for the Swedish ore known historically for its high manganese content. Since the 2009 reopening of the mine, idled in 1992, Dannemora Mineral has signed delivery agreements with five other European steel makers: Voestalpine, of Austria; the German companies Salzgitter, ThyssenKrupp and Rogesa; and SSAB, of Sweden. Staffan Bennerdt, CEO and president of Dannemora Mineral, said that the company’s iron ore has already been tested by other, potential, customers, and that development financing for the Dannemora mining project is being negotiated. › The Brazilian mining company Vale SA and the steel producers POSCO and Dongkuk Steel Mill Co, both of South Korea, plan to construct a steel plant in the state of Ceara, Brazil. Vale will hold

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J anuary 2011

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