Sberbank and MMK sign credit facility agreement

It is reported that Mr Herman Gref chairman of the board and CEO of Sberbank and Mr Victor Rashnikov chairman of the board of directors of OAO signed a nonrenewable 2 year credit facility for RUB 3.0 billion.

The credit facility is provided to finance the construction of the plate mill complex at MMK with a design capacity of 1.5 million tonnes of plates per year. The plates are intended for production of pipes, building of ships, vessels and bridges.

The implementation of the plate mill complex is bound to further significantly strengthen the general operational efficiency of MMK. It will secure state of the art production of high quality plates meeting international standards and capable to successfully compete both in the domestic and export markets.

In its turn, Sberbank considers the credit line for MMK as another major step towards effective support of Russian strategic enterprises.

Thainox to halt production for 1 month on weak demand

Thainox Stainless PCL, Thailand's largest stainless steel producer, said on Tuesday it planned to stop production for one month due to weak global demand.

The shutdown would help the firm save costs at its plant in Rayong on Thailand's eastern seaboard, and allow it to carry out maintenance work, it said in a statement. It had sufficient inventory to serve the market, it added.

"However, during this period, the customers will still be able to place an order and we continue to deliver the finished products as usual as the Bangkok office and other departments not directly related to production continue to work," it said.
Thainox, Southeast Asia's largest stainless steel maker, has an annual capacity of 300,000 tonnes of stainless steel, widely used in the construction, automobile and household sectors.

Around 60 percent of its output is sold on the domestic market and the rest exported, according to the company's website. Thainox gets its raw materials, including hot-rolled coils, from abroad.

Kim Eng Securities said in a research note the company was now running at a low utilisation rate of 53 percent, mainly due to a lack of hot-rolled coils.
Thailand's Mahagitsiri family, which founded the company, recently raised its stake to 58 percent. South Korea's POSCO owns 15 percent, and other major shareholders include Nippon Steel .

Mr Paswan lays foundation for steel processing unit in Gaya

It is reported that Mr Ramvilas Paswan union minister for steel, fertilizer and chemical has laid the foundation stone of a steel processing unit at Eru in Gaya.

Steel Authority of India Limited’s Eru steel processing unit would start production in August 2010 with a target of 100,000 tonne of TMT bars annually.

Addressing the gathering after laying the foundation stone, Mr Paswan said that there was no future for youths in Bihar and they are forced to go to other states to appear for job recruitment examinations and become victims of regionalism as in Mumbai and Assam.

Mr Paswan said that his ministry is ready to open the closed steel unit at Anjhor which would be possible only if the state government transferred the land.