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Brazil's Unigel approves Petrobras deal on fertilizer plants
Petrobras confirmed a report from Friday that Brazilian chemical company Unigel had approved a Petrobras deal to settle legal disputes relating to two fertilizer factories in the northeastern Brazil. The agreement would allow Petrobras, the state-owned fertilizer company to resume operations at the two plants located in the states Sergipe and Bahia. This is part of President LuizInacio Lula Da Silva's efforts to reduce Brazil's dependence on imported fertilizer. Petrobras leased two nitrogen fertilizer facilities to Unigel under a 10-year contract in 2019. However, both plants have been closed since 2023. Unigel has cited unfeasible conditions for operating due to the high natural gas price in Brazil. Petrobras announced in a filing that the deal, which is still subject to arbitration court approval, restores Petrobras ownership of the two plants. It added that operations will resume following a bid process for contracting services to operate and maintain the plants. Reporting by Marta Nogueira, Rodrigo Viga Gaier and Gabriel Araujo. Writing by Chizu Nomiyama; Editing and proofreading by Rosalba o'Brien and Rosalba Nomiyama.
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Source: Nippon Steel executive headed to Washington next Week in order to push for US Steel agreement
Nippon Steel Vice Chair Takahiro Muri will be in Washington next week to try to get approval for its $15 billion offer to buy U.S. Steel, according to a source familiar with the situation. Semaphor reported the news first, and cited sources to say that Mori will meet with officials of the Trump administration during his trip. U.S. Steel & Nippon Steel didn't immediately respond to comments. The former president Joe Biden, citing concerns about national security that were not specified and related to the national security review conducted by the Committee on Foreign Investment in the US on the deal in January, blocked the proposed tie up. The two companies then sued CFIUS (which examines foreign investments to determine if they pose a national security risk), claiming that Biden had influenced the committee's decisions and violated their right to an impartial review. Biden, they claimed, did this in 2024 when he expressed opposition to the agreement while running for reelection in Pennsylvania (a swing state), where U.S. Steel has its headquarters. The Biden administration defended the review, claiming it was essential for protecting infrastructure, security and supply chains. In April, Donald Trump was elected President CFIUS was asked to conduct a new review The merger will be evaluated to determine if “further action” is necessary, raising the hope that the deal may finally get the green light. Since then, Trump has doubled down On comments opposing the deal, he said later that month he didn't believe a foreign company could control U.S. Steel. This dimmed hopes of approval. Reporting by Alexandra Alper and Arsheeya Bjwa, both in Washington; editing by Shilpa Majumdar and Chizu Niyama
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Sources: Brazil's Unigel approves Petrobras' deal on fertilizer factories
Two sources familiar with this matter say that the board of directors at Brazilian chemical company Unigel approved on Friday a deal proposed to them by Petrobras in order to settle legal disputes relating fertilizer plants located in the northeastern part of Brazil. The agreement would allow Petrobras, the state-run fertilizer company to resume operations at the two plants located in the states Sergipe and Bahia. This is part of President LuizInacio Lula Da Silva's efforts to reduce Brazil's dependence on imported fertilizer. Petrobras leased two nitrogen fertilizer facilities to Unigel under a 10-year contract in 2019. However, both plants have been closed since 2023. Unigel has cited unfeasible conditions for operating due to the high natural gas price in Brazil. According to Petrobras, the deal will reestablish Petrobras ownership over the two facilities, and operations are set to resume following a process of contracting services to operate and maintain them. Reporting by Marta Nogueira, Rodrigo Viga Gaier and Gabriel Araujo. Editing by Leslie Adler, Chizu Nomiyama and Leslie Adler.
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Greenland's quest for special status intensifies as the US considers it
U.S. Officials are discussing a plan that would bring Greenland under the sphere of America's influence. This is a similar agreement the United States used to maintain close ties with a number of Pacific Island Nations, according to U.S. Officials and a person familiar with these discussions. According to the plan under consideration, the Trump Administration would suggest that Greenland's leadership enter into an agreement with the United States called a Compact of Free Association (COFA). COFA agreements vary according to signatory but the U.S. government provides most essential services. This includes everything from emergency management and military protection to mail delivery. In exchange, U.S. troops can operate freely in COFA nations and the trade between the U.S. and COFA is mostly duty-free. Donald Trump, who floated the idea to acquire Greenland during his first term, has been even more insistent since he took office in January. He refuses to rule out the possibility of taking the island with force. Denmark, the country that governs Greenland, has strongly rejected the idea. A COFA would not allow Trump to achieve his goal of making the island, which has 57,000 residents, a part the United States. The sources say that this is not the only Greenland proposal on the table and that it would have to overcome many practical obstacles. Before Trump's election, it was reported that some advisors had suggested the idea informally. It was not previously disclosed that White House officials had begun discussions about the logistics of such a proposal. Two sources confirmed that some officials from the National Security Council as well as the National Energy Dominance Council (both of which Trump created) are involved in these talks. One of the sources said that the National Economic Council was also involved. COFA agreements were previously signed with independent countries. Greenland, however, would need to be separated from Denmark in order for this plan to move forward. Greenlanders may be interested in independence but they are also not keen on being part of the U.S. Markus Thomi is one of the people involved in these discussions, according to the two sources. He is the acting senior director of the National Security Council Western Hemisphere Section. One of the sources stated that David Copley is the key mining official for the NEDC. The White House, the Danish Embassy and Greenland's Washington representative office did not respond to our request for a comment. Interior Department also didn't respond. The Office of Insular Affairs of the Interior Department plays a major role in implementing COFA agreements. COFA DEALS TROUBLES The existing COFA agreements between Washington and Palau, Marshall Islands and Micronesia is seen as crucial by all political parties in the United States to counter China's increasing influence in Asia Pacific. Yet, in the past, these agreements have run into problems. Republican lawmakers have sometimes opposed budget elements allocated to fund COFA agreement, causing deep frustration in countries that depend on the funds. A COFA does not guarantee that the United States will not use influence to try and influence a country. Reports in April indicated that Chinese nationals were able to establish close relationships with senior political figures on Palau. This alarming U.S. government officials. One senior European official stated that the White House has not approached the Danish government about the COFA plan and they have had no substantive discussions about Greenland’s future status. Danish officials publicly rejected the notion of the U.S. buying Greenland and insisted that Greenlanders should determine their own future. Officials in the administration claim that the island is vital to the U.S. because of its mineral deposits, which have high-tech and other military applications but are not tapped due to labor shortages and lack of infrastructure. A senior administration official said that the U.S. is helping Greenland to diversify its economy, and achieve greater economic independence with Denmark. Officials from the U.S. Development Finance Corporation and Export-Import Bank could both play a part in this process. According to the official, the Tanbreez project, where rare earths will be extracted and processed on the island, but then shipped back to the U.S. for processing, is a bright spot in Greenland's relations. New York's Critical Metals Corp has a stake of 42% in the project. However, that stake may increase as part a complex deal expected to be finalized later this year. The official stated that a COFA could be "an elegant way to address certain concerns we have in regards to Greenland's security," but made no other comments on the possible existence of such an agreement. Reporting by Gram Slattery and Valerie Volcovici; Editing Don Durfee, Alistair Bell
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Investors warn EU against data reductions in green rule review
The political drive to reduce EU sustainability regulations should not result in investors losing valuable information about material risks, or forcing them to rely on third party data providers more often. This was the message from Europe's leading asset management trade association on Friday. The European Commission is reviewing the planned rules for corporate disclosures, amid concerns that they are preventing European companies from competing against other regions. This is especially true in light of a tariff war driven by the United States. The Commission has proposed changes in February that will exempt thousands of smaller European companies from the rules and reduce the obligations on larger firms to monitor their supply chains and check for environmental and human rights problems. The European Fund Managers' Association, EFAMA said that it supported the Commission in its efforts to reduce regulatory burden, but warned against removing key information about sustainability risks, which could harm the EU's broader climate objectives. Ilia Békou, policy adviser at EFAMA said that simplifying disclosure requirements can help EU competitiveness, by promoting innovation and growth in key technological areas across the EU's economy. EFAMA's proposal stated that it was preparing a list of data points which companies could report. It estimated this would reduce the reporting requirements by 80%. This could be supplemented with additional voluntary disclosures. The report also cautioned against reducing too much the number of green companies that are covered by the regulation, as this could make it more difficult for European investors and businesses to invest in smaller green enterprises. Another suggestion is to ensure that the changes are in line with an upcoming review of sustainability reporting for asset managers. (Reporting and editing by Simon Jessop, Susan Fenton and Virginia Furness)
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China's Tsingshan has not given up on Chile's lithium plans, despite the plant's retreat
Tsingshan, a Chinese metals company, said it was still interested in investing in Chile's lithium downstream sector on Friday. This follows reports that the group had abandoned plans to build a lithium cathode factory in Chile. This week, it was reported that Tsingshan (a Chinese automaker) and BYD (a Chinese automaker) had withdrawn from plans to build large lithium cathode factories in Chile. The report cited the Chilean economic development agency as well as Tsingshan. The two Chinese giants' retreat was a blow for Chile in its efforts to increase domestic processing of lithium - a metal that is essential to electric vehicle batteries. Chile is the No. The world's No. 2 lithium producer is Chile. Tsingshan's Friday statement referred to the plans it had for a Chile cathode factory in the past, but did not say that they were scrapped. The company said that it valued Chile's investment climate and was not going to miss the chance to explore ways to add value to Chile's lithium. China's Embassy said in a post on social media Thursday that Tsingshan & BYD had never stated they would stop investing in Chile and they will "continue the dialogue" with Chilean officials. The report also mentioned a "close friendship" between the two nations. Tsingshan had previously stated that it had withdrawn plans for a cathode-plant. BYD didn't immediately respond to an inquiry for comment. Corfo, Chile's investment agency, said on Wednesday in a press release that Tsingshan had withdrawn their plans through its subsidiary Yongqing and that BYD had rejected in January an offer of land it had selected previously for the project. (Reporting and editing by Daina-Beth Solomon and Kylie Madry, Anthony Esposito, Richard Chang and Aida Pelaez Fernandez)
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Congo gold miner suspends operations over tax dispute with M23 rebel administration
Twangiza Mining is a gold mining company operating in the rebel controlled South Kivu Province of eastern Democratic Republic of Congo. According to a letter sent to the entire company, the rebel administration has ordered the suspension of operations. In a letter dated 8 May, the company, managed by Hong Kong registered Shomka Resources informed its employees that they would be forced to stop work immediately. Twangiza Mining has been ordered to suspend operations by the South Kivu Province administration, according to a letter signed by Chao Xianfeng, the General Director. The letter also stated that all equipment and vehicles had been placed in standby mode. The decision highlights tensions regarding resource control in Congo’s mineral-rich east regions where M23 rebels have advanced and placed strategic mining assets into a new administration. This has created uncertainty for international operators as well as commodity markets. Rwanda-backed rebels have taken control of Congo's mineral-rich eastern provinces in the first half of this year and are now consolidating their control. Manu Birato who recently became the M23 Governor of South Kivu Province said Twangiza Mining has to adapt to new rules and pay taxes that they had not been paying. Birato said, "We're in discussions with them to show them that they have to start paying taxes now." The country received no taxes at all from this company. He said that the money was transferred to private accounts. The administration did not order the closure of the operations. "We told them they would have to pay taxes." Birato explained that the people are struggling to adjust to this new requirement because they have been used to not paying taxes. Birato's claims were not addressed by a spokesperson from Twangiza. Twangiza Mining, a joint venture, is owned by Congolese Shomka Capital, with 65.5% of the shares, and Baiyin International Investments Ltd., with 34.5%. (Reporting and writing by Yassin Kobi; Editing by Bill Berkrot).
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UK steel industry wants clarity on timeline for US 0% tariffs
The British steel industry demanded clarity on Friday regarding the date when U.S. Tariffs will be removed under a historic first agreement to remove President Donald Trump’s levies against the sector. Britain announced a deal on Thursday with the United States that would lower steel tariffs from 25% to 0%, allowing British producers to continue exporting to the United States. Details released late Thursday revealed that both sides still have to formalise security requirements and quotas for the steel industry, which leaves sector representatives unsure of when levies are going to be implemented. Chrysa glystra, Director of Trade and Economic Policy for industry body UK Steel, said: "It is not just a formality. There are still many things that haven't yet been determined and defined." Glystra said that companies did not know what conditions they had to meet in their supply chains to be eligible for the tariffs. We don't know when it will go into effect or what the timeline will be. The steel industry in Britain contributed £1.7 billion, or 0.1%, to the UK's economy in 2024. Its future has been a little uncertain. Last month, the UK government intervened in order to maintain the blast furnaces at the UK's final producer of virgin steel by seizing control from the Chinese owners. The British government released details of the U.S. agreement. It showed that the access to zero tariffs was conditional on Britain's commitment to "work quickly to meet U.S. demands on the security supply chains of steel products and aluminium intended for export into the United States, and on the ownership of relevant production plants." The General Terms of the Agreement stated that "understanding the United Kingdom would meet these requirements, United States will quickly construct a quote." The Office of the United States Trade Representative stated that the U.S., UK and Canada "will negotiate a different arrangement" regarding the steel tariff. The British trade ministry refused to provide a timeline for the formalisation of the steel deal. Glystra, from UK Steel, said that the ongoing engagement between UK Steel and the British government has been constructive. She said, "The fact we have now a better foundation than before is positive." It's not as good as if you told us that there are no tariffs on steel as of today. That would be better." (Reporting and editing by Toby Chopra; Alistair Smout)
Which Volkswagen factories in Germany could be hit by layoffs or closed?
Volkswagen prepares to shut a minimum of 3 factories in Germany, the carmaker's works council head said on Monday, without specifying which plants would be affected but saying this would suggest layoffs of countless personnel.
Volkswagen stated in early September it plans to end its job security program - which has been in place since 1994 and avoids task cuts till 2029 - as it deals with pressure from Asian rivals.
Germany's most effective union IG Metall had formerly recognized the following German factories as possibly impacted by Volkswagen ending its job security scheme, while experts have in the past called VW sites in Osnabrueck and Dresden, as prospective targets for closure.
All are in the north-western state of Lower Saxony, apart from the Kassel plant which is in Hesse, in main Germany, and Dresden in the eastern German state of Saxony.
BRUNSWICK
Volkswagen's earliest plant employed about 7,400 workers since 2022, in a city of about 250,000 people. It produces components such as front and rear axles, steering and battery systems as well as equipment, devices, tools and moulds. It has actually also been making batteries for Volkswagen's brand-new modular electric drive matrix MEB lorries given that 2019.
EMDEN
Founded in 1964 to take advantage of its nearby seaport, the plant initially specialised in producing the VW Beetle, it now makes models such as the VW Passat and the VW electric ID.4.
More than 8,000 workers operate at the factory, which produces around 180,000 automobiles a year, compared to a. population of around 50,000 in the city of Emden.
HANOVER
The factory uses around 14,000 individuals in Lower Saxony, a. area of 8 million which is likewise Volkswagen's second largest. investor.
It is where production of the VW 'Bulli' started in 1956 and. now produces the sixth-generation T-Series of the camper van,. making up vans and minivans, in addition to the Amarok pickup.
Apart from automobiles, it likewise makes parts such as cylinder. heads and inlet manifolds.
KASSEL
Part of the Volkswagen group considering that 1958, the Kassel plant is. VW's greatest components plant worldwide and produces more than. four million handbook and automated transmissions a year.
The plant is the biggest employer in northern Hesse,. Volkswagen says, using around 16,500 people. The overall. population of Kassel is around 200,000.
The components produced in Kassel are used in the core VW. brand name, in addition to in Volkswagen Commercial Vehicles, SEAT, Audi,. Škoda, Porsche and Lamborghini cars.
SALZGITTER
Opened in 1970 for the production of VW's K70 design, the. factory in Salzgitter employed around 7,500 workers as of 2023,. in a city of just over 100,000 people.
It now makes engine versions as well as elements. for electric lorries, and Volkswagen announced a 2 billion euro. ($ 2.21 billion) investment in 2021 to change the primary engine. plant into the primary battery cell plant for the group.
WOLFSBURG
The large plant in Wolfsburg, Lower Saxony is at the heart of. the group's production and is Volkswagen's headquarters.
VW states the plant, which covers an area around the exact same size. as 910 soccer pitches, uses approximately 70,000 people.
Developed in 1938, shortly after the company was founded. under the Nazis, it produced nearly half a million automobiles in. 2023, including the VW Golf.
DRESDEN
Opened in 2001, Volkswagen's factory in Dresden, Saxony,. employed, as of December 2023, 340 individuals, consisting of trainees. and those on dual work and research study programmes.
Having actually produced automobiles such as the sedan Phaeton and the. Bentley Flying Spur, it pivoted to electrical lorries in 2017,. starting with the e-Golf, and now producing its ID.3 design.
OSNABRUECK
In 2009, Volkswagen took control of the former Karmann factory,. which now produces lorries and body parts for the VW, Skoda,. Porsche, and Bentley brand names. This site specialises in. small-series production, such as convertibles and roadsters.
The Porsche Cayman, Porsche Boxster, and T-Roc Cabriolet are. made in Osnabruck, a city with around 160,000 citizens. The. plant's 2,300 workers work throughout the entire automobile value. chain, from technical advancement to tool and plant building and construction. to lorry production.
However Porsche has actually revealed plans to develop the next generation. of the Cayman and Boxster designs at its Stuttgart-Zuffenhausen. plant, and Volkswagen will stop production of the T-Roc. Cabriolet next year, creating a potential production issue for. Osnabrueck.
(source: Reuters)