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Future Looking Bright For Corus Redcar?

Mon, 06 Sep 2010 11:43:37 +0000

It has been eerily quiet at Redcar's steel plant over the recent months, and the mighty blast furnace of Teesside Cast Products' (TCP), once at the heart of North East steel production, has stood idle...

But, there is now hope that all that will change.

Mr Kirby Adams, MD and CEO of Corus, is optimistic that a deal on the table between Corus and Thailand's SSI will soon have the proud and skilled plant thriving again.

Last week, he sat down with SSI president Mr Win Viriyaprapaikit to sign a Memorandum of Understanding for the takeover of TCP and, if successfully concluded, the deal is expected to rekindle Teesside steel making, create a significant number of new jobs and provide a long term future for the operation.

While it may take several months to finalise the small print, Mr Adams said that the marriage on the table between Corus and SSI offers the opportunity of a sustainable future for TCP. He added that...

"I have a very positive feeling about SSI. I've known the company for 10 years, they became a customer of TCP last year, which enabled us to run the plant until December (2009). They believed in the plant and quality of the product which increased their interest in having a long term relationship with the company."

TCP’s world fell apart in May 2009 when it emerged that a consortium of international buyers had walked away from a 10 year deal to buy around three quarters of output from the site. The deal, which came into effect on January 2nd 2005, had originally been unanimously welcomed for giving the site a decade of security.

Mr Adams said that news of the consortium’s decision to turn its back on TCP came as a complete shock. The bombshell dropped, on what was just his second day in the top job, with a fax delivering the news that developed into the Corus crisis.

He added that "What they did was wrong, illegal and hugely damaging to people. A 10 year commitment was terminated with no justification. It created a crisis for the company and the community. But we had to put it behind us and look to find a long term solution for Teesside."

Corus and Mr Adams have faced criticism over the last year and a half for their handling of the situation at TCP. MPs and unions are among those who had hit out at the steel boss, having accused him of doing too little and being uncommunicative.

Mr Adams was also criticized for not attending the inquiry into the Corus crisis, headed up by former Stockton MP Mr Dari Taylor. But in April 2010, TATA’s Indian steel bosses rapped former Redcar MP Ms Vera Baird for her unwarranted criticism of Mr Adams.

He said that "If you are a chief executive you have to have thick skin. A leadership role means you have to be prepared to take the blame and give the praise. When the off-takers pulled out we had to find a solution. We worked night and day to get to a point where we had a long term strategic solution. That’s what we’ve done despite the criticism and innuendo that we were doing nothing."

He added that "Some buyers thought they could get a bargain or were interested in the land rather than running the site. But people wanted to talk to us confidentially about the site. We were working behind the scenes the entire time. To get to this point it has taken longer than many people would have envisaged."

Of the Government inquiry into the Corus crisis, Mr Adams said that he was improperly criticized. He explained that "I was not formerly invited. When I was invited it was a date when I was in India. I was then asked to answer questions by letter, which I did. The criticism was unjustified and unfair."

The proposed deal with SSI will see the bulk of Corus’ Redcar and Lackenby operations in new hands, including Redcar and South Bank coke ovens, TCP’s power generation facilities and sinter plant, the Redcar blast furnace and the Lackenby steel-making operation.

Along with the Redcar Beam Mill, Corus will still own land at the huge 3,000 acre site which Mr Adams says the company is looking to open up to new opportunities. The company has announced plans for a GBP 31.5 million monopile factory for wind turbines on Teesside.

While discussions over a takeover of TCP have taken place behind closed doors, Mr Adams said that a couple of handfuls of interested parties had come forward. But Corus is now talking exclusively with SSI. He added that "We've put everyone else on hold, our aim is to get this transaction done."

SSI has said it is now finalizing the details and arranging financing for the proposed acquisition, which Mr Adams says is one of the most complex he has been involved with. He says signing the MoU with SSI is an amazing outcome for TCP against the turbulent economic backdrop seen in the last 18 months.

He added that "In the last year, TCP is the only steel making facility to be sold and we have faced a difficult world economy. The market for slab steel is still very difficult in the global market and it would be difficult for TCP if it were running the plant as a merchant. That's why it’s so crucial for Teesside to be tied up with a company that needs slab - a built in owner and customer."

SSI currently buys about four million tonnes of steel per year. It plans to produce 3.5 million tonnes of slab steel on Teesside, its full capacity, and export it all to Thailand.

Since taking up the top post at Corus, Mr Adams has cut USD 1 billion of costs out of the European operation and from a point where the company was making what he describes as unsustainable losses to the tune of GBP 100 million a month, it is now in profit. He will soon be packing up his UK home and heading to the other side of the globe for a new future in Australia and says career wise he has nothing lined up at the moment.

He said that "I'm very proud that we’re back in profit and I’m leaving the company in a better state then when I took it on. I came to the role at Corus at the height of the financial crisis but I came into it with my eyes wide open. Very strong leadership and tough decisions were needed."

He added that "A deal with SSI will deliver something better for Teesside than the off take agreement. It will create a better future for the facility. The sale of TCP will create sustainability."

In the last 18 months Mr Adams has come under fire from a number of quarters, including local MPs. In May 2010, he hit back at union criticism of his management style saying "I am a straight shooter, I don’t sugarcoat and I might irritate some people."

Source: Steelguru.com, Gazettel

Merchant Navy Officer Killed In Pirate Attack

Thu, 26 Nov 2009 08:00:00 +0000

In the early hours of tuesday morning, a Ukrainian Officer was tragically killed by pirates aboard the Monrovia flagged Cancale Star.

Pirates boarded the vessel in darkness, 18 nautical miles off the West coast of Africa. The officer was shot dead in an onboard confrontation, the pirates escaping with the contents of the ship's safe.

The tanker's Master, Captain Semenovics, reported that around six or seven pirates had approached the tanker in a speed boat.

"They came on deck" he said, "pointed a pistol to the head of one of the sailors, marched him to my cabin" (they) "asked me to open the safe and they collected all the cash"

The Master did not state directly how much money the pirates stole.

The vessel was reportedly carrying some 89,000 m3 of Crude from Nigeria's Niger Delta.

The tanker's owners Chemikalien Seetransport have issued a statement from Germany confirming that the vessel's chief officer "has tragically lost his life in a piracy attack off the coast of Benin in the early hours of November 24th"

New Home For International Marine Survey

Mon, 08 Jun 2009 08:00:00 +0000

IMS is very excited to be moving to its new home at the Abbey Road Business Centre in Durham.

All enquiries and interest may now be directed to:

International Marine Survey
Abbey Road Business Centre
Abbey Road
Durham
DH1 5JZ

The Team at IMS would like to thank everyone who has helped make the last year an exciting one and are looking forward to the months ahead.

Sims Show Their Metal

Sun, 08 Mar 2009 18:32:17 +0000

Sims Metal Management, the world's largest listed metal recycler, recently announced that it had completed its acquisition of UK based recycler All Metal Recovery Ltd (AMR).

Founded in 1986, AMR's competitive approach placed it as one of the fastest growing metal recyclers in the UK, securing supply approval from Corus as well as worldwide export custom.

Tom Bird, Sims UK Managing Director stated "We are delighted ... and look forward to welcoming the team from AMR ... We have been looking to build our presence in the strategically important central location of the West Midlands for some time ... The AMR acquisition will build upon Sims metal recycling business in Halesowen, and is consistent with our strategy to source tonnes for our major facilities in the UK."

In addition to the two metal recycling yards in Smethwick, AMR's operations include a nearby four acre dedicated rail link facility for transporting ferrous and non-ferrous metal to UK steelworks and ports.

IMS Launches Newsletter - Subscribe Today

Tue, 24 Feb 2009 13:10:57 +0000

New IMS Privacy Policy In Place

Mon, 23 Feb 2009 20:17:59 +0000

Just a quick note to all of our site visitors to advise that the IMS privacy policy has been upgraded. As always you can be assured that your information will never be passed to any third parties and we hope to continue making improvements to the site based on your feedback and changing needs.

Best Regards

The IMS Support Team

Best Wishes For 2009 From All The Team At IMS

Tue, 30 Dec 2008 12:13:42 +0000

Well, as New Years Eve approaches many of us will be taking the opportunity to look back over the last year and review our plans for the future. Despite some worrying economic times we hope that it has been a good period for all of our partners and customers and that 2009 brings you and your business a host of new opportunities.

Let us know some of the challenges you have faced this year.

What are your current marine survey bugbears?

If there is something we can do to improve the service you receive, we want to know.

Till then,

Best wishes for 2009 and a profitable New Year

International Marine Survey

Tax Relief for Indian Ship breaking Industry

Wed, 17 Dec 2008 15:21:58 +0000

Thanks to a ruling by the Supreme Court, there has been some great news for the Indian ship-breaking industry. The recent decision means that Indian ship breaking companies can now claim heavy deductions from their taxable income and it would seem that it's all down to how one interprets the small print and the question of whether 'ship-breaking is a production process or recycling'.

According to the Business Standard (India), the legal tussle related to whether the ship-breaking industry produced anything new and distinct, one of the conditions for claiming a tax deduction. In this battle between the Income Tax Department and a large ship breaking company, the prize to be won was up to 20 per cent of profits and gains.

The Income-tax Department rejected the claim for deductions, stating that ship-breaking activity does not produce new article. The Supreme Court of India however, is of the view that production has much broader connotations and includes all byproducts, intermediate products and residual products that emerge in the course of manufacturing, and thus as well as dealing with the production of new article it should also encapsulate the production of a very desirable byproduct, scrap.

MV FEDRA - You make one little mistake and they won't let you forget it

Tue, 02 Dec 2008 11:05:44 +0000

On Saturday 11th October 2008 gale force winds battered Gibraltar's Europa point. During the early hours of the morning the MV FEDRA realized she was dragging her anchor. Unable to start her own engines three tugs were dispatched to the Liberian registered vessel's assistance but were unable to prevent the ship from running aground. Fortunately Spanish and Gibraltarian authorities were able to rescue all 31, however shortly after the last crew member was hoisted to safety the ship broke in two, reportedly spilling around half of its remaining oil into the surrounding seas.

Expert photographer David Parody was on hand to capture the scene.

BONUS: Play the entire slideshow to view David's photography of the MV Flame sinking in the Gibraltar Straits early this year.

First Post for International Marine Survey!

Tue, 02 Dec 2008 10:18:15 +0000

Welcome to the InternationalMarineSurvey.com blog!

This is your opportunity to interact with us here at IMS and our opportunity to keep you informed and entertained. Each week we'll post new content so that you can stay involved with the hot stories and industry news, so why not subscribe by clicking the RSS button to the right and add a bookmark to your toolbar!