Severstal Challenges Essar’s Acquisition of Esmark
Moscow’s Severstal is making a bid for Esmark Inc. following the United Steelworkers’ rejection of Esmark’s original plan to sell the Wheeling, W.Va.-based company to India’s Essar Steel. Severstal has proposed acquiring all of the outstanding shares of Esmark for $17 per share, in an offer set to expire June 26.

The Russian steelmaker claims it is best positioned to optimize the value of Esmark by creating complementary product lines, geographical alignment and operational synergies. Further, Severstal has developed a restructuring plan designed to derive maximum value from Esmark, including a five-year capital improvement plan that carries the full support of the United Steelworkers. Together, the combined company will become one of the North American leaders in flat-rolled steel, Severstal claims.

In mid-May, the USW demanded that Esmark repudiate its April 30 agreement with Essar, claiming the deal was in direct violation of the company’s collective bargaining agreement. The USW contends that Esmark breached the legal protections granted in its right-to-bid clause by entering into the memorandum with Essar and closing on related financing without first providing the Steelworkers with appropriate notice and an opportunity to bring forward an alternative proposal.

“The USW’s rights under the right-to-bid clause clearly prohibit the company from entering into these agreements, and we will take whatever action is necessary to protect these rights,” says David McCall, director of USW District 1, which covers Ohio where many of the Esmark plants are located. “We used our contractual protections to prevent CSN from taking over Wheeling-Pitt, which opened the door for Esmark to acquire the company. You would think they would have learned something from that transaction.”

Under another section of the USW labor agreement—the successorship clause—Esmark and Essar cannot close the proposed transaction until Essar has entered into a collective bargaining agreement with the USW. The Steelworkers say they plan to use that power to block the Essar deal. 

Esmark executives deny the claims made by the USW, stating that the company has observed both the spirit and the letter of the right-to-bid process under the collective bargaining agreement.

“The Esmark proposed transaction was unanimously approved by the company’s board of directors. Essar is a fine company with the resources and management commitment to invest significantly in the Ohio Valley. Esmark brought Essar management to Pittsburgh early in the negotiation process to meet with union officials, and we consistently invited the USW’s involvement in and support of the Essar transaction,” says Esmark Chairman and CEO James P. Bouchard.

“The USW is attempting to challenge a transaction that would maximize value for our shareholders and revitalize Wheeling-Pittsburgh Steel and the Ohio Valley,” Bouchard adds. “Essar Steel Holdings, which owns Algoma Steel, Minnesota Steel and the Essar DRI project in Trinidad and Tobago, has the potential to become a leading low-cost steel producer in North America.”

In contrast to the proposed Essar Steel transaction, Severstal’s proposal has the support of the USW. Severstal and the USW have also entered into an agreement that satisfies the successorship clause of the labor agreement.

“While we hope to work together with Esmark and its board of directors to negotiate a mutually acceptable merger agreement, we believe that it is critical to give Esmark’s stockholders a chance to decide for themselves. They will find Severstal’s proposal much more compelling than the Essar Steel transaction,” says Gregory Mason, CEO of Severstal International and chief operating officer of OAO Severstal.

Severstal believes it is in the best position to grow Esmark’s assets, including one claim previously used by Bouchard when his company was targeting Sparrows Point for acquisition. Severstal says the supply of slabs from Sparrows Point could substantially increase the utilization of Esmark’s hot-strip mill. Additionally, Severstal officials say, the company offers synergistic opportunities between its facilities in Dearborn, Mich., and Columbus, Miss., while the supply of hot-band from Esmark to Dearborn could broaden the customer value proposition of the combined companies. The potential synergies could be even further enhanced upon successful closing of Severstal’s recently announced acquisition of WCI in Warren, Ohio.

If successful, Severstal would acquire Wheeling-Pittsburgh Steel Corp., the Esmark Steel Services Group and the remaining 50 percent ownership of joint venture Mountain State Carbon, a blast furnace coking coal production facility in West Virginia.

In mid-May, Severstal announced plans to purchase WCI, a manufacturer of value-added steel products. According to terms of the agreement, Severstal will acquire all outstanding equity of WCI for a total cash consideration of $140 million. WCI’s board of directors has recommended the transaction, which has union support, to its shareholders. WCI’s total annual steelmaking capacity of 1.22 million metric tons is focused on custom flat-rolled steel for use in demanding applications.

“This acquisition is aligned with Severstal’s disciplined approach to growing our U.S. business while creating shareholder value. It solidifies our position as the fourth largest steel producer in the U.S. by raising Severstal’s total U.S. capacity to just under 11 million metric tons per year,” says Mason. “The addition of WCI to Severstal’s family will enhance our custom product capabilities and create opportunities to increase profitability in both the short- and long-term.”

While fending off the move from Severstal, Esmark officials were also defending themselves against a lawsuit from another steel giant, ArcelorMittal. The Luxembourg-based company filed suit claiming a breach of its August 2007 contract to purchase Sparrows Point for $1.35 billion. The suit seeks in excess of $540 million.

Esmark officials dispute the merits of the suit, claiming ArcelorMittal failed to meet various conditions of the transaction and did not resolve outstanding issues with the United Steelworkers.

In Big Departure from Minimill Roots,
Nucor Eyes Iron-making Facility in La.
Nucor Corp., Charlotte, N.C., is exploring construction of an iron-making facility in St. James Parish, La., a facility that could serve as a precursor for a new, integrated steel mill. The new company, if completed, would be called Nucor Steel Louisiana.

A third phase of the project, according to a report in the Baton Rouge Advocate newspaper, could include the addition of a furnace and rolling mill at the site. Plans for a possible third phase were not announced publicly, but were included in an air permit application submitted by Nucor.

According to the Advocate report, Nucor officials wrote, “In Phase III, Nucor may ultimately construct a basic oxygen furnace and rolling mill, completing an integrated steel-making operation. Phase III will follow should the steel market justify its construction.”

Over the past two years, Nucor has evaluated multiple sites both in the United States and abroad. In its analysis, Nucor considered many factors, including the features of each site, transportation, permitting, the commitment of the state’s leadership to the project and proposed incentives. The competitiveness of Louisiana’s incentive package, including significant infrastructure improvements and the state’s ability to move quickly, were very important in the analysis, say Nucor executives. After taking into account all of these factors, the only U.S. location still under consideration is a large site on the Mississippi River in St. James Parish. Sites outside of the U.S. are still under active consideration, however, add company officials.

If the project is located in St. James Parish, Nucor will build a new high-capacity port on the river capable of handling ocean vessels, as well as barges of coal and pig iron. The project’s first phase would require $2 billion. If the second phase is built, Nucor would invest an additional $1 billion for a second blast furnace.

The project is not a certainty. Permits must be secured, and Nucor’s board must approve the final site and the capital investment. But if the facility is ultimately greenlighted in the U.S., it will be the first greenfield pig iron facility built domestically in more than 30 years.

“Nucor would build one of the most modern iron-making facilities in the world to produce three million tons of pig iron, employing the latest technologies to reduce emissions. This facility would create hundreds of good jobs for American workers and demonstrate the effectiveness of new technology to protect the environment,” says Nucor Chairman and CEO Daniel R. DiMicco. “At the same time, this project would help Nucor achieve our long-term goal of increasing control over our raw materials supply.”

Nucor has selected advanced heat-recovery coke technology to be used in this facility. Unlike conventional coke facilities, this coke plant would capture waste heat and use it to produce power, making the operation self-sufficient. The coke-making facility would likely outperform current best-available control technology requirements, Nucor claims.

Nucor’s furnaces would have the latest designs for emissions controls and energy efficiency, capturing waste energy to produce power over and above the company’s requirements. By the second phase of this project, the facility would be producing 500 MW of power, half of which would be supplied to the grid, completely offsetting the emissions that would have been released had a facility been constructed to generate this new source of power, Nucor officials say.

Additionally, the proposed facility will have slag granulation technology that produces a valuable by-product used by the cement industry.

On the international front, Nucor is again expanding its European presence with a planned joint venture agreement with Greek steelmaker Sidenor. The venture follows Nucor’s partnership with Italy’s Duferco, a combination finalized in May.

Nucor will purchase a 34 percent share of a joint venture for the production of long steel products and plate in the Balkans, Turkey, Cyprus and North Africa. The contemplated joint venture will include all of the steelmaking and related activities of Sidenor, excluding the activities and assets of Corinth Pipe Works.

Sidenor is the largest producer of steel in Greece, while maintaining steelmaking, rolling and reinforcing mesh operations in Bulgaria and the former Yugoslavian Republic of Macedonia. The main steel plants are located in Thessaloniki and Almyros in Greece, in Pernik, Bulgaria, and in Dojran, Macedonia.

In addition, Sidenor operates steel distribution centers throughout the Balkans, either alone or with partners. The company’s total 2007 steel production was nearly two million tons, which is expected to grow significantly in the near future. Sidenor recently began operation of a new rolling mill at its plant in Bulgaria, which will bring Sidenor’s total steel rolling capacity to more than 3.6 million metric tons per year by 2009.

“We are pleased that a company with the reputation and capabilities of Nucor has agreed to join with Sidenor to further its strategic growth in the rapidly developing markets of southeastern Europe, and we strongly believe that this cooperation will bring many benefits to both companies,” says Sarados Milios, CEO of Sidenor.

Also, Nucor has entered into an agreement to acquire 50 percent of Duferdofin-Nucor S.r.l., a new joint venture being created with Duferco S.A. for the production of beams in Italy and the distribution of beams in Europe and North Africa. The joint venture will include the Duferco Group’s Italian long product production assets and associated distribution companies.

“Since our earliest contacts with Nucor, we have experienced a complete agreement on business vision, which is a fundamental basis for the success of any venture. Nucor’s recognized operating skills will greatly assist in improving the performance of the joint venture and also assist in the future design of the plants,” says Bruno Bolfo, Duferco chairman.

Steel Dynamics Acquires
Another Scrap Company
Steel Dynamics Inc.’s upstream expansion has continued with the acquisition of another scrap processing business. OminSource Corp., an SDI subsidiary, has acquired the remaining equity interest of Recycle South, Spartanburg, S.C. OmniSource already owned 25 percent of Recycle South. It will acquire the remaining interest for approximately $500 million.

“This transaction significantly expands our recycled metals business platform created by the acquisition of OmniSource in October 2007. It demonstrates SDI’s strategic commitment to the continued expansion of ferrous and nonferrous recycling, which is an important element of our overall growth plan,” says Keith Busse, chairman and CEO of Steel Dynamics.

Recycle South was formed in August 2007 through the merger of Carolinas Recycling Group and Atlantic Scrap and Processing. The company has annualized revenues of approximately $670 million, processing 1.4 million tons of ferrous scrap and 150 million pounds of nonferrous scrap. The acquisition will increase Steel Dynamics’ annual ferrous scrap processing capacity to approximately seven million tons.

Recycle South will operate as a division of OmniSource, known as OmniSource Southeast. The company’s existing management team will remain in place.

U.S. Steel Breaks Ground
on Coke-making Venture
U.S. Steel Corp. has broken ground on a $570 million joint capital investment program at its Granite City (Ill.) Works facility. U.S. Steel is embarking on the venture with SunCoke Energy Inc. to construct heat recovery coke ovens with an annual coke-making capacity of 650,000 tons.

U.S. Steel will provide $280 million in the investment, while Gateway Energy and Coke Company, a SunCoke Energy subsidiary, will build, own and operate the ovens. A cogeneration facility to be owned and operated by U.S. Steel also will be built. Construction of these facilities is expected to take 18 months. 

The new coke facility will use SunCoke Energy’s low-emission technology to process coal into coke, a key ingredient in steelmaking. The technology has been recognized by the U.S. Environmental Protection Agency as setting the standard for coal processing ovens. The energy generated in the coke-making process will be used in a cogeneration plant that will provide electricity to Granite City Works.

Minimill Operator MacSteel Acquired by Gerdau Group
The Gerdau Group, Porto Alegre, Brazil, has completed the acquisition of the MacSteel business from Quanex Corp., Houston. MacSteel is the second-largest producer of SBQ in the United States.

MacSteel operates three minimills, in Jackson and Monroe, Mich., and Fort Smith, Ark., plus six downstream operations in Michigan, Ohio, Indiana and Wisconsin. The company has an installed capacity of 1.2 million tons of crude steel and 1.1 million tons of rolled products annually.

With the acquisition, South Africa’s Gerdau Group will become the world’s largest producer of long specialty steel for the automotive industry, the company claims. Its U.S. presence will further consolidate its position as a global supplier.

The $1.46 billion acquisition does not include Quanex’s building products business. Quanex has announced plans to spin off that segment of its business into Quanex Building Products Corp.

Latrobe Keeps Producing, Despite Labor Lockout
Despite a labor dispute, Latrobe Specialty Steel is continuing production, finishing and delivery operations at the company’s Latrobe, Pa., facility with supervisors and temporary workers.

About 375 hourly workers represented by the United Steelworkers Local Union 1537 walked off the job May 1, and were subsequently locked out by management. The striking workers agreed to return to work one week later, but the company had withdrawn its offer.

“Latrobe Specialty Steel, facing mounting competition from foreign and domestic non-union companies, must be able to win in global markets. We must prudently manage the increasing costs affecting every phase of the business. We need to have a contract with the Steelworkers that will keep the company competitive for the long term,” says Hans Sack, president and CEO.

The USW filed an unfair labor practice charge with the National Labor Relations Board, claiming the company unlawfully terminated workers’ health insurance benefits, engaged in surveillance of picketing activities, failed to provide relevant information to the union and bargained in bad faith.

The company also operates facilities in other locations that are not affected by the issues at the Pennsylvania mill.

Latrobe Specialty Steel’s capacity expansion project continues on schedule. The company predicts output of the first hot metal in the third quarter of 2008 and full production in the first quarter of 2009.

Gerdau’s Sales, Income Jump in First Quarter
Gerdau Ameristeel Corp., Tampa, Fla., reported net income of $163.0 million during the first three months of 2008, a 22.1 percent increase over the same three months of the previous year. Net sales for the quarter jumped 53.8 percent to $2.0 billion from the $1.3 billion in the similar time period of 2007.

Finished steel shipments increased 25.5 percent during the quarter, primarily due to the acquisition of Chaparral Steel in September 2007. Compared to the fourth quarter of 2007, which included the Chaparral facilities, shipment volume increased 9.5 percent.

Average mill finished steel selling prices were up 24.4 percent over the same period in 2007, and a 7 percent increase over fourth-quarter 2007 selling prices.

“Gerdau Ameristeel delivered another quarterly earnings record as strong global demand for steel has driven selling prices higher and provided us the opportunity to export our product globally,” says Mario Longhi, president and CEO of Gerdau Ameristeel. “We offer a well-

balanced steel product mix of rebar, merchant and structural shapes, wire rod and flat-rolled sheet, which when combined with our expanding downstream business has allowed us to deliver these attractive results.”

For the three months ended March 31, metal spread, the difference between mill selling prices and scrap raw material costs, was $458 per ton, an increase of $84 per ton from the same period in 2007. The increase is primarily attributable to the higher-margin Chaparral products.

“Our outlook for the near term remains positive despite the unprecedented level of volatility in raw material costs. Certain grades of scrap have increased over $200 per ton since the end of the first quarter. However, with captive scrap operations that supply approximately one-third of our scrap needs and announced selling price increases, we remain focused on keeping metal spreads robust,” Longhi says. “Import levels remain lower than historical highs, global steel demand and prices are creating export opportunities, and inventory levels in North America appear to be at low levels throughout the system.”

At quarter’s end, Pacific Coast Steel, a majority owned and consolidated joint venture of Gerdau’s, acquired all the assets of Century Steel Inc., a reinforcing and structural steel contractor, for approximately $151.5 million. “We are focused on the integration of the recent Century Steel fabrication business acquisition, which will continue to expand our market presence in the western United States,” Longhi says.

ArcelorMittal’s Sales Grow in First Quarter
ArcelorMittal saw improved performance in sales for the first quarter of 2008 compared to both the previous quarter and the same three months of 2007. Profits were mixed in a comparison with those same quarters.

The world’s largest steel company reported first-quarter sales of $29.8 billion, up 6.4 percent from the previous quarter and 21.6 percent higher than the same quarter in 2007.

In contrast, the company’s net income of $2.37 billion was down 2.6 percent from the previous quarter, though up 5.4 percent from the first three months of 2007.

“ArcelorMittal has again delivered a strong set of numbers for the quarter, with EBITDA of $5.0 billion. Despite global economic uncertainties, we are continuing to see strong demand for steel and a healthy pricing dynamic,” says Lakshmi N. Mittal, chairman and CEO. “This global demand is supported by the continued industrialization of a number of key emerging economies, and ArcelorMittal is well positioned to continue to take advantage of these dynamics.”

ArcelorMittal’s shipments for the first three months totaled 29.2 million metric tons, up 8 percent compared with  first-quarter 2007.

In the company’s Flat Carbon Americas business unit, shipments totaled 7.8 million tons for the quarter, compared to 7.3 million tons the previous quarter. The average selling price also escalated during the quarter.

Also during the quarter, the company finally completed its court-ordered divestiture of the Sparrows Point mill to OAO Severstal for $810 million.

“We have now fully captured the $1.6 billion of synergies that we announced we expected from our successful merger with Arcelor,” Mittal says. “Looking forward, we expect EBITDA in the second quarter to be higher than in the first quarter and exceed $6.5 billion, largely on account of strong demand for our products across all regions.”

Kaiser’s Net Income Jumps 129% in 1Q
Kaiser Aluminum Corp., Foothill Ranch, Calif., reported net income of $39 million for the first quarter of 2008, more than doubling its income from the same period one year earlier. In the first quarter of 2007, Kaiser reported net income of $17 million.

Net sales for the first quarter increased 2 percent to $399 million, due primarily to an increase in sales from the company’s fabricated products unit, up 8 percent. The bump there offset lower shipments in the primary aluminum segment and lower realized prices in both segments.

“Continuing strong demand for aerospace and defense applications and restocking at service centers led to increased shipments,” says Jack A. Hockema, president, CEO and chairman of Kaiser Aluminum.

Operating income in fabricated products was $40 million for first-quarter 2008 compared to $41 million in the prior-year period, reflecting a favorable net impact from volume, mix and value-added price. This was offset by unfavorable energy costs, planned major maintenance expense, currency exchange rates and depreciation.

Plate shipments in first-quarter 2008 were at a record level despite an unfavorable product mix and a short unplanned outage of a light-gauge heat-treat furnace.

“Shipments for aerospace, defense and general engineering applications remained strong, and we continue to realize the benefit of new online capacity at Trentwood,” says Hockema. “We expect our strong overall shipments trend to continue throughout the year despite soft business conditions for ground transportation applications.”

Operating income in primary aluminum was $41 million for first-quarter 2008, compared to $4 million for first-quarter 2007. Additionally, the favorable impacts of higher realized aluminum prices and improved alumina costs were partially offset by the unfavorable currency exchange rates.

The company reported that the first two phases of its $139 million expansion of heat-treat capacity were delivering results, and the remainder of its $244 million organic growth initiative was continuing as planned. Equipment installation for phase three of the company’s heat-treat plate expansion at Trentwood begins later this summer and is expected to become operational by the end of the year. Additionally, the Kalamazoo rod/bar project is on track for completion by late 2009, and equipment upgrades will be completed this year at the Los Angeles, Sherman and Chandler facilities, Kaiser officials reported.

Expectations Decline, But Economic
Growth Sustainable for 2008
Economic growth in the United States is sustainable throughout the remainder of 2008, say the nation’s purchasing and supply executives in their spring 2008 Semiannual Economic Forecast from the Institute for Supply Management, Tempe, Ariz.

While 42 percent of respondents predict revenues to be 9.2 percent greater in 2008 than in 2007, the overall expected revenue increase is only 1 percent for manufacturing, as 31 percent expect a 9.3 percent decline and 27 percent expect no change. This represents a significant decline in expectations from December 2007 when the panel of supply management executives predicted a 6.8 percent increase in 2008 revenues.

With operating capacity at 78.6 percent, expected capital investment growth at 1 percent and prices expected to increase 8.5 percent during 2008, manufacturers will need to focus on cost cutting to offset lower revenue growth and higher input prices, says Norbert J. Ore, chair of ISM’s Manufacturing Business Survey Committee. “On average, respondents are concerned about their organizations’ prospects for 2008.”

The manufacturing industries expecting the greatest revenue increases in 2008, listed in order, are: Electrical Equipment, Appliances & Components; Primary Metals; Miscellaneous Manufacturing; Machinery; Food, Beverage & Tobacco Products; Paper Products; Plastics & Rubber Products; and Chemical Products.

Forty-three percent of non-manufacturing purchasing and supply executives expect their 2008 revenues to be greater than in 2007. Overall, respondents currently expect a 2.7 percent net increase in revenues, greater than the 2 percent increase that was forecast in December 2007.

Non-manufacturing industries expecting increases in revenue at or above the average of 2.7 percent in 2008 are: Construction; Professional, Scientific & Technical Services; Wholesale Trade; Agriculture, Forestry, Fishing & Hunting; Retail Trade; and Utilities.

Manufacturing purchasing and supply managers report that their companies are currently operating at 78.6 percent of normal capacity, representing a decline from the 82.9 percent reported in December 2007 and the 82.8 percent reported in April 2007. This is the lowest operating rate reported since December 2001 when the manufacturing-operating rate was 77.5 percent.

Non-manufacturing purchasing and supply executives report that their organizations are currently operating at 85.9 percent of normal capacity. This is lower than the 86.4 percent reported in December 2007, but higher than the 84.4 percent reported in April 2007.

Outokumpu Expanding
in the United Kingdom
Finland-based Outokumpu has announced an investment in long products finishing facilities in Sheffield, U.K. The $15.5 million investment will enable Outokumpu to offer a broader long-products portfolio in Europe and the rest of the world.

The project will create an integrated manufacturing route for small bar and rebar, complementing the existing melt shop and the wire rod mill, both in Sheffield. This involves the installation of coil to bar drawing lines as well as de-coiling and straightening equipment for stainless rebar.

“With this investment we will take an important step in the long products business in Europe by moving downstream into drawn bar and rebar products. The low-nickel, lean duplex rebar is a particularly exciting new product. By selectively substituting traditional carbon steel rebar, it can dramatically extend the life of reinforced concrete structures,” says Tommy Grahn, head of Outokumpu’s long products business unit.

The new equipment is scheduled to be in production by mid 2009.

Briefs
The United Steelworkers Local 7054 and Kentucky Electrical Steel have reached agreement on a new labor contract. The new five-year agreement covers the 118 hourly personnel at the minimill near Ashland, Ky.

Broner Metals Solutions will provide planning, scheduling, MES and warehouse management systems for the steel processing facilities at ThyssenKrupp’s planned carbon steel plant in Alabama. Broner will provide its services for TK’s hot-strip mill, cold- and hot-rolling mills and galvanizing mills.

UC Rusal will invest $50 million to expand into cast-house production at its Irkutsk aluminum smelter. The expansion is required due to the introduction of two new potrooms, which increased capacity of the smelter by 170,000 tons of aluminum annually.

Wheeling Corrugated, a division of Esmark Inc., Wheeling, W. Va., will supply the steel decking requirements in the construction of the new arena for the Pittsburgh Penguins hockey team. The award involves approximately 1,000 tons of steel deck and accessory products, expected to be produced out of the Beech Bottom, W. Va., and Emporia, Va., facilities. 

The International Aluminium Institute honored Alcoa, Pittsburgh, for best safety performance in the worldwide aluminum industry during the organization’s annual general meeting in Cape Town, South Africa. The institute evaluated data from 18 mines, 35 refineries and 102 smelters.

Carpenter Technology Corp., Wyomissing, Pa., has increased base prices an average of 7 percent on all premium-melted alloys and 3-6 percent for specialty stainless steels in all product forms. The increases went into effect June 1.

Toyoda Machinery, Arlington Heights, Ill., has chosen McClain Tool and Technology to represent its horizontal machining, vertical machining, grinding equipment and flexible manufacturing systems in Kansas, Missouri and Southern Illinois. 

SA Recycling, a joint venture between Sims Group and Adams Steel, has purchased Long Beach, Calif.-based Pacific Coast Recycling LLC from Mitsui & Co. Ltd. PCR operates seven facilities in California, including locations in the Port of Long Beach, San Diego, Fontana, and South Gate, processing both ferrous and nonferrous scrap metal with annual shipments of approximately one million metric tons.

The Fabtech International & AWS Welding Show will make its first appearance in Las Vegas this fall. The event, dedicated to showcasing the full spectrum of metal forming, fabricating, stamping, tube and pipe, and welding equipment, is scheduled Oct. 6-8 at the Las Vegas Convention Center. 

AK Steel, West Chester, Ohio, has added a $640 per ton surcharge to orders for electrical steel products. The surcharge increase went into effect on products shipped this month.

ArcelorMittal, Luxembourg, is donating $155,000 to the Save The Children NGO to help the victims of the Myanmar disaster, and another $144,000 to the Chinese Red Cross Foundation to help the relief efforts in China following the earthquake that struck May 12.  

American Metalco, Longwood, Fla., has become a joint venture operation with Ohio Gratings to focus on the Florida architectural market. American Metalco provides architectural systems for grilles, screens, awnings, canopies and other building products.

Novelis Corp., Cleveland, announced a price increase of two cents per pound on all 1000, 3000, 5000, and 6000 series aluminum alloy products. The increase, which applies to all products for the distribution, OEM and building and light gauge markets, went into effect with all new orders booked after June 1.

Talley Metals, a subsidiary of Carpenter Technology Corp., will increase base prices approximately 3 percent on all stainless products to help offset rising manufacturing costs. The increase is effective on all shipments beginning July 1.

Gallatin Steel, Ghent, Ky., has been recognized as one of the “Healthiest Companies in America” by Interactive Health Solutions, Chicago. The IHS recognition program measures year-over-year improvement in aggregate employee health metrics including blood pressure, cholesterol and glucose levels.

People
Alcoa President and Chief Operating Officer Klaus Kleinfeld has been elected president and CEO by the company’s board of directors. He succeeds Alain Belda, who will continue as chairman of the board. Prior to joining Alcoa, Kleinfeld served as president and CEO of Siemens AG. “Klaus has extraordinary energy, a keen understanding of global issues, is committed to continuing the strong operating performance of Alcoa and embraces our values,” Belda says. Additionally, Mike Schell has joined Alcoa as executive vice president, business development and law. Schell will assume responsibility for all of Alcoa’s corporate development and legal matters.

Nucor Corp., has promoted Rex Query to the position of president of Nucor Europe, a new senior management position. Query, who has been vice president and general manager of Nucor’s sheet mill in Decatur, Ala., will be responsible for Nucor’s growth initiatives in Europe.

U.S. Steel Corp., Pittsburgh, has announced several executive appointments. J. James Kutka Jr. has been named senior vice president-strategic planning and business development; Joseph R. Scherrbaum Jr., has been named vice president-sales and customer service for North American flat-roll operations; Larry G. Schultz has been named senior vice president and controller; and Gregory A. Zovko is the new vice president-accounting.

Larry W. Holley has been named president and general manager of Gramercy Alumina and St. Ann Bauxite, joint ventures of Monterey, Calif.-based Century Aluminum Co. and Noranda Aluminum Holding Corp., Franklin, Tenn. He had been president of El Dorado Chemical Co.

John Bagnuolo has been appointed chief operating officer of Indalex Holding Corp., Lincolnshire, Ill., responsible for the company’s manufacturing and supply chain operations. Additionally, Jeffrey Knapton has joined Indalex as the company’s vice president of marketing.

Robert Bangasser has been appointed corporate sales manager for Jet Edge Inc., St. Michael, Minn. Bangasser will be responsible for worldwide sales activity for the high-pressure waterjet manufacturer.

ESAB Welding & Cutting Products, Florence, S.C., has announced the appointments of four vice presidents. David Abe is the vice president of sales, Western zone; George Learmonth is the vice president of strategic accounts for ESAB North America; Greg Stauffer is vice president of sales support operations; and Jerry Gleisner is vice president of sales, Eastern zone.

Jon Owens has been appointed vice president of business development and global products for ESCO Corp., Portland, Ore. Owens had been ESCO’s vice president of mining and construction products.

Ronald Schneider has been promoted to vice president of global project management for MG Systems & Welding, Menomonee Falls, Wis. Also, Joerg Toberna has been named the company’s marketing manager.