ArcelorMittal to buyout Bayou Steel Corp.

The Luxembourg steelmaker ArcelorMittal said Monday it will buy Bayou Steel Corp.

One of ArcelorMittal Steel mill’s below

ArcelorMittal Steel Mill

      Bayou Steel Corp. operates a minimill on the Mississippi River in LaPlace, and has a rolling mill in Harriman, Tenn.  They also run an automobile shredder at the LaPlace plant, barge wrecking and scrap yards in LaPlace, and a plant in Harvey. they employ 630 people and in 2007 generated revenue of $331 million on 510,000 tons of finished product.
  

      ArcelorMittal North America CEO Jos Jacque, said  "We are excited by the opportunity that this acquisition represents as it further strengthens … our product portfolio, customer base and distribution network in North America."  For those that don’t know already ArcelorMittal is the worlds largest steel company and has been expanding over the last couple years and seems like they have no plans to slow down in the near future.  ArcelorMittal says it will invest 25 billion in the India steel market and is interested in expanding there operations in china as well.  On another note as long as the dollar is weak we will probably see more buyouts from foreign steel companies, because exports from the nation’s mills are more competitive.

      Bayou Steel went through bankruptcy several years ago and emerged from it in 2004. In 2006, after several months of seeking takeover bids, Bayou Steel agreed to be acquired by Black Diamond Capital Management LLC.

The purchase by ArcelorMittal is subject to regulatory approval.

Steel Industry

At the rate of growth in steel production around the world mainly in china and india we could see 2,000,000 MMT of steel produced in 2008.  The Steel industry is huge and plays a crucial role in the infrastructure and overall economic development of a country, the Steel industry is often considered to be an indicator of economic progress.

       The Boom in China and India’s economy has caused a mass increase in steel demand over the last few years and prices have risen along with the rise in the booming steel market.  The steel industry is vital to national security and economic competitiveness.  Railroads, automobiles, skyscrapers, bridges, appliances and more are all built and produced with Steel.

       With the increase in demand and the rising prices of fuel and electricity we can only expect the cost of steel to keep going up even with slower economies around the world since steels growth is higher in 3rd world countries it is not as affected to  a slow down in a few economies there is still plenty of demand in emerging economies.

       The steel industry is one of the greener industry’s with a recycling rate of 65-70% it is the most recycled material on the planet.  did you know that to make the framing for a 3000 square-foot home you would need about 9 recycled cars for the same with wood you would need to chop down approximately 60-75 trees.  As prices of steel rise I suspect recycling levels will rise as well.

Early Modern Steel

Early modern steel included Blister Steel manufactured by the cementation process which was first made around the 16th century in Italy and soon after in England were it was produced in Coalbrookdale by Basil Brooke around 1610.  Wrought iron bars was the raw material used in the process, and was still used up till the 19th century.

Another early modern steel was Crucible Steel which was melted in a crucible rather then being forged.  This resulted in a more uniform structure with better composition throughout.  Earlier furnaces could not reach high enough temperatures to melt steel.  Modern crucible steel resulted from the invention of Benjamin Huntsman in the 1740’s. Blister Steel (same as above) was melted in a crucible in side a furnace, & cast into ingots normally.

Early modern steel era ended and Modern steel making era began with the Bessemer Process named after it’s inventor Henry Bessemer who took out a patent on the process in 1855. although this process had already been used centuries before in china and other countries it was not used on an industrial scale before.  The process was independently discovered in 1851 by William Kelly. The Bessemer process was the first inexpensive industrial process for mass production of steel from molten pig iron.  The key to the process is the removal of impurities from the iron by oxidation by air being blown through the molten iron.

the Bessemer Process which revolutionized steel manufacture by cutting cost and increasing production speed and decreasing labor requirements.  this brought the price of steel down to a similar priced wrought iron, which for the first time in history made steel an affordable material for building bridges or to be used in the frame work for buildings, most manufactures switched from wrought iron to steel after this. 

below is a picture of a Bessemer converter

 

Bessemer converter used in steel making

A Master-ful Win for Rifle Shafts

TORRINGTON, CT April 15, 2004 - Viewers witnessed more than history in the making at the 68th Masters. They saw a demonstration of performance through innovative shaft design as Rifle Project X and Rifle Flighted steel shafts claimed first- and second-place respectively at the hallowed grounds of Augusta National Golf Club.

Were extremely excited that our Rifle shafts played a role in what is already being hailed as one of the best Masters tournaments of all time, says Ray Lucas, vice president of sales and marketing for Royal Precision. I think Rifles success really comes down to performance and making a winning difference. Its true that Royal Precision does not make the most steel shafts in the world, but we do make the worlds highest-premium steel shaft. And, when performance matters, the best players in the world turn to steel shafts designed for winning results.

Designed by Royal Precision Americas first steel shaft manufacturer Rifle-branded steel shafts combine four advanced technologies to produce steel shaft innovation unparalleled in the industry. Only Rifle steel shafts offer: Frequency Matching that perfectly matches a set of clubs through electronic calibration; Stepless Design Technology that eliminates the energy-robbing steps found on most other steel shafts, and provides greater accuracy and a smooth, yet solid, feel at impact; Patented Internal Rifling that transfers energy more efficiently than other steel shafts, reduces vibration and increases distance; and advanced Flighted Technology that features produces variable ball trajectories for different clubs within a single set.

Headquartered in Torrington, Connecticut, Royal Precision Inc. is a leading designer, manufacturer and distributor of high-quality, innovative golf club shafts, including the Rifle shaft which features Royal Precision’s "Frequency Coefficient Matching" technology designed to provide consistent flex characteristics to all the clubs in a golfer’s bag. Royal Precision is also a designer and distributor of Royal Grip golf club grips offering a wide variety of standard and custom models, all of which feature durability and a distinctive feel and appearance. For more information, call 800-811-2795 or visit the Royal Precision website at http://www.royalprecision.com/.

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