y the end of 2015, Noranda Aluminum Bwill complete a third redraw rod mill at its New Madrid, Missouri facility, chief

executive Kip Smith said in a conference call recently to discuss the company's fourth-quarter 2014 earnings. Noranda said in November it had suspended construction on the mill, which the company had previously expected to begin production by the second quarter of 2015, after its request for an electricity rate cut was denied.

The third rod mill will increase Noranda's redraw rod capacity to 220 million pounds annually, up more than 40 percent from its current capacity of 155 million pounds, the company said in its 2013 annual report. Spokesman John Parker confirmed those figures were still accurate.

Redraw rod, used to make electrical wire and cable, accounted for 28 percent of Noranda's sales in 2013, its second-largest category after extrusion billet. The company said in its 2013 report that it had obtained customer commitments for 220 million pounds. Noranda has continued to pursue negotiations for a lower electricity rate, and the case is expected to be decided by May 2015, Smith said.

Chief financial officer Dayle Boyles added that higher aluminum prices last year, primarily due to an increase in the average Midwest premium (AL-PREM) to 19 cents a lb in 2014 compared to 11 cents a lb in 2013, boosted the company's earnings. The rise in premiums to record highs is widely attributed to prolonged logjams at London Metal Exchange warehouses due to financing deals that have drawn scrutiny from lawmakers and regulators.

In the call, Smith said he expected the premium to remain high in 2015, noting that the main driver was robust demand due to strength in the United States economy.

Noranda third rod mill to be completed by 2015 end

Despite extremely poor sales, Chennai-based truck and bus maker Ashok Leyland

has not given up on its maiden car venture, for which it piggybacked on Japanese giant Nissan as per reports.

The multi-seater van Stile saw sales of just 311 units in the April-January period, which has more than halved compared to the same period

previous year that witnessed sales 694 units.

This is the first time that India's second largest heavy truck maker has plunged into the car segment. The company said in the past that it will restrict itself to the Stile and will not go any further in the personal vehicle space. The van is built on the same Nissan platform that makes the Evalia. While the Nissan Evalia is targeted at the personal vehicle segment, the Stile is primarily targeting the taxi segment. However, the Stile is also used as a personal vehicle.

Mr. Gopal Mahadevan, CFO Ashok Leyland said, "We have deeply realised that fact that we have not done well (with the Stile). It is the only product in our portfolio where we had a challenge. We are looking at having a relaunch of the product, bring its back with some renewed vigor but nothing is planned as of now.”

One of the main reasons why Stile has not done well is because of the distribution strategy adopted by Ashok Leyland. The company set up retail outlets of the car within its existing truck showrooms, most of which are located outside limits of most cities.

According to the Society of Indian Automobile Manufacturers, the van segment produces annual volumes of about 125,000 units, registering growth of 19%. Maruti Suzuki is the market leader with a near monopoly. The Delhi-based company has a share of 92% in this segment followed by Mahindra & Mahindra and TATA Motors.

Ashok Leyland will give car venture a second shot

n order to tap opportunities in the energy sector, TATA Power has Isigned a memorandum of understanding with Siberian Coal Energy Company.

SUEK is an exclusive exporting company of Open Joint Stock Company and the largest Russian coal producer. The company delivers coal to over 30 countries. As part of the agreement, both TATA Power and SUEK will cooperate in identifying and targeting opportunities in Russia and other geographies of common interest.

A TATA Power spokesperson said, “SUEK is known to be reliable and a world class player in the mining business and TATA Power looks forward to working with them on identifying opportunities across the energy chain. The signing of this MoU is a major milestone for TATA Power and we endeavour to be a significant player in the international energy market.”

TATA Power sign MoU with Siberian Company

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