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68

J

anuary

2011

www.read-tpt.com

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