China's energy shortage to ease this year says official
China's energy shortage is expected to ease this year with the addition of additional generation capacity of 75-mlllion kw this year, says the daily South China Morning Post quoting a power industry official.

Wang Yonggan, secretary-general, China Electricity Council, said in Beijing that the country's power-generating capacity would be at a record high this year with a new power generations capacity of 75-mlllion kw this year, China's highest power sector investment in a single year.

However, regional and seasonal shortages will persist and the benefit of the additional power output would be felt only in the second half of the year, he added.

An earlier report carried by the China News Service quoted Wang as saying the power situation had improved markedly in 2005.

Wang was also quoted as having said that China's power supply has been increasing rapidly and the number of provinces experiencing power shortages had dropped from 26 at the beginning of last year to seven by the end, with power generators exceeding 500 million kW in 2005.
Back to News Review index page  

BlueScope's 1st-Half Profit Falls 38%, Prices Decline
Australia's largest steel-maker BlueScope Steel Ltd has reported a decline in first-half profits, attributing it to a 38-per cent decline in steel prices and a rise in input costs like coal.

After record sales in 2004, global majors including Mittal Steel Co, the world's largest steel maker, South Korea's Posco, which ranks fifth, BlueScope and others including Indian steel companies have borne the brunt of a global steel export glut from China, which has doubled its crude steel manufacturing in the past four years. At the same time they have been hit by a record jump in the cost of raw materials.

At A$312 million ($231 million), BlueScope's six months ended December 31, 2005, saw a decline from A$502 million ($360.24 million) in the same period last year. BlueScope has said that its full-year profit may fall as much as 53 per cent as steel prices continue to decline, though its sales had changed little at A$3.9 billion ($ 2.79 billion).

Raw material costs increased by A$172 million, and other costs jumped A$110 million for the first half, while it has also increased its dividend pay out by 11 per cent since a year ago.

In November 2005 BlueScope Steel Ltd, had signed separate share subscription and joint venture agreements with Tata Steel Ltd to form a 50:50 joint venture in India to manufacture zinc / aluminium metallic coated steel, painted metallic coated steel and roll-formed steel products and deliver pre-engineered buildings and other building solutions. (See: Tata Steel teams up with BlueScope Steel)
Back to News Review index page  

P&O partner sues over Dubai deal
Hillary Clinton and two other senators have opposed Dubai's £3.92 billion purchase of P&O citing national security concerns, in a lawsuit against the global ports operator.

P&O's 50 per cent joint venture partner in Miami, Eller & Company, has filed for $10 million in damages, claiming it was not consulted about the deal and will therefore become an involuntary partner with the state-owned Dubai Ports World.

P&O became the cause of a political storm last week on issues of national security for the US, since P&O owns significant operations at 14 ports including in New York, New Jersey, Baltimore, New Orleans, Miami and Philadelphia, five of which are deemed strategic by the US Department of Defence.

After the September 11 attacks in 2001, cargo vessels and port facilities have become the focus of security concerns. As sea transport accounts for 90 per cent of global trade, a terrorist attack could have severe implications for the global economy.
Back to News Review index page