TPT January 2011

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68 January 2011 ›
Global Marketplace
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 15th
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