[Top News] from [REUTERS]
[Green Business]
John McCrank
TORONTO
Mon Dec 21, 2009 11:32am EST
Canadian auto parts makers poised for green gains
TORONTO (Reuters) - A push by U.S. automakers to build more fuel efficient vehicles is playing to a strength of Canada's auto parts makers and positions them to pick up market share as the industry emerges from recession.
The Detroit-based automakers face a simple choice: adapt or die. Foreign-based manufacturers that specialize in smaller, greener vehicles are eating their lunch in car showrooms across the country, while U.S. fuel and emissions standards have tightened, forcing innovation.
That's good news for Canadian companies such as Magna International Inc, Linamar Corp, and Martinrea, all of which could benefit from their expertise in areas like weight reduction and advanced powertrains, analysts said.
"They are very well positioned because their larger customers, particularly General Motors, Ford and Chrysler, have had no money to put into research and development for the last few years, so they have been relying on the auto parts makers to invest in research and development on their behalf," said Michael Willemse, an analyst at CIBC Capital Markets in Toronto.
Shares of Linamar have risen nearly sevenfold in value since March, when the survival of both GM and Chrysler was in doubt. Martinrea shares have climbed five and a half times in value over the same period and Magna's stock has doubled.
Magna is particularly active in developing green technology. The company, which has nearly $1 billion in net cash, has made investments in technologies for electric vehicles and fuel efficiency a priority.
"I would regard Magna as extremely strongly positioned because of its technical capabilities," said David Tyerman, an analyst at Genuity Capital Markets in Toronto.
On Friday, Magna announced a partnership with the government of Canada on a new research facility for the development of thermoplastic composites, designed to cut the weight of structural car parts and make vehicles more fuel-efficient and affordable.
"It is absolutely critical that every vehicle part and/or system be focused on making a contribution to lower emissions and better fuel economy," said Don Walker, Magna's co-chief executive.
Like Magna, Brampton, Ontario-based Martinrea uses a technique called hydro-forming to make cost-effective, strong, lightweight parts. It also uses newer metal forming technologies, like hot stamping, to make lightweight pieces.
On the components side, Magna launched a joint venture with Switzerland's Brusa Elektronik in March to develop applications to target the wave of hybrid electric, plug-in hybrid, and electric vehicles being developed by the major automakers.
Magna also has the advantage of having full vehicle engineering and developing capability, due to its Magna Steyr facilities in Austria, said Tyerman. On top of building vehicles on contract for companies like BMW and Mercedes-Benz, it produces lithium-ion battery systems for Volvo's industrial fleet vehicles.
Aurora, Ontario-based Magna, which is working with Ford to bring a lithium ion battery-powered car to North America, has already built it own electric vehicle concept car -- the Mila EV -- to showcase its expertise.
FUEL EFFICIENCY A MUST
The push toward fuel efficiency comes as the U.S. government tries to wean the country off its dependence on foreign oil, while reducing greenhouse gas emissions. The initiative will boost fuel efficiency by 40 percent over current standards by 2030.
Reducing the mass of a vehicle will help achieve those tighter standards, as will improvements in propulsion systems, said Bill Pochiluk, president of West Chester, Pennsylvania-based consulting firm Automotive Compass.
"If you could only do one thing in Canada to support the supply base ... you would really support the heck out of powertrains," he said. "It's an area where there's still lots of room to grow, lots of room for improvement."
Guelph, Ontario-based Linamar is one company that has made big strides in powertrain development, said Genuity's Tyerman.
Rather than developing hybrid or electric propulsion systems, Linamar has focused mainly on making a more efficient internal combustion engine, which is still expected to be the dominant powertrain over the next 20 years.
"Linamar may be the largest beneficiary, proportionally, of all this over the next five, 10, 20 years," said Tyerman. "They are less diversified, so what they do is directly driven by fuel efficiency, and because they are a big player, they are benefiting from the rush to new engines and transmissions."
($1=$1.07 Canadian)
(Reporting by John McCrank; editing by Rob Wilson)
[Green Business]
GENEVA
Mon Dec 21, 2009 10:00am EST
WTO sets panel on China raw material export curbs
GENEVA (Reuters) - The World Trade Organization set up a panel on Monday to rule on complaints by the United States, European Union and Mexico about Chinese curbs on exports of raw materials important to their own industries.
The three, who agreed that only one panel need to look into the issue although they filed their complaints separately, argued that the restrictions pushed up costs of materials used to produce steel, aluminum and chemicals.
China had blocked a previous request for a dispute panel, to be composed of three trade experts who will have six months to come up with their findings, but under WTO rules was not able to reject it a second time.
Most disputes at the WTO, which umpires the rules for global commerce, involve attempts to block imports unfairly.
But in this case, the complainants argue that China's export restrictions give an unfair advantage to its domestic industries which can buy the raw materials involved more cheaply.
A U.S. official told the WTO's Dispute Settlement Body (DSB) that the curbs included export quotas and duties, minimum export pricing, and limits on the right to export and other measures that pushed up export prices for the goods involved.
The official, echoed by diplomats from the 27-nation EU and Mexico, argued that the Chinese measures not only violated WTO trading rules but also the terms of the agreement under which China entered the WTO in 2000.
China says the restrictions -- on exports of bauxite, coke, magnesium, manganese and other minerals -- are needed to conserve natural resources.
A Chinese representative told the DSB that Beijing felt the decision by the three to go ahead with the panel request in the case would not help find a solution, and that continuing dialogue would have been better.
He also argued that the way the three had formulated their complaint made it difficult to prepare a defense because the legal base on which it was based was not sufficiently clear.
China would ask the panel, likely to start work in the New Year, for a quick ruling on that issue, he said.
In a move ahead of Monday's WTO dispute settlement body meeting, China announced last Wednesday that it would cut export duties in 2010 on certain forms of three other base metals -- molybdenum, indium and tungsten.
At the same DSB meeting on Monday, the United States was able to block China's request for a panel to rule on U.S. additional duties on Chinese tires imposed in September.
Under WTO regulations it will not be able to block a second request, which China could make at the next meeting of the DSB, set for January 19.
Washington imposed the 35 percent duties because unions had complained that Chinese low-price tires were flooding into the country, destroying jobs.
Global trade rules allow countries to impose temporary duties as a safeguard against sudden surges of imports.
In another development at the DSB session, the Philippines rejected a call by the European Union for a panel to examine Manila's taxes on spirits. If Brussels persists in the case, as expected, a panel will be created automatically in January.
(Reporting by Robert Evans; Editing by Alison Williams)
[Green Business]
KOLKATA
Mon Dec 21, 2009 4:45am EST
India's Tata Steel to reduce carbon emissions
KOLKATA (Reuters) - India's Tata Steel is trying to bring down carbon dioxide emissions to 1.8 tonnes per tonne of steel produced by 2012 from 2 tonnes of carbon dioxide now, a top official said on Monday.
"Our target is to bring it down to 1.8 tonnes by 2012 and to 1.5 tonnes by 2020," Managing Director H.M. Nerurkar told reporters on the sidelines of a CII conference in Kolkata.
He said Tata Steel's carbon dioxide emissions were already below global industry averages of about 2.2 tonnes per tonne of steel.
He said that while it was relatively easy to bring down carbon emissions to 1.7 tonnes per tonne of steel, it would be difficult to lower them below that.
On the prospects for Tata Steel's European unit Corus, Nerurkar said there was a slight recovery in Europe and it was expecting more orders in the infrastructure sector.
Last week Corus got a 350 million euro order ($510 million) contract to supply rail tracks to French operator SNFC.
(Reporting by Niladri Bhattacharjee; Editing by John Mair)
[Green Business]
John McCrank
TORONTO
Mon Dec 21, 2009 11:32am EST
Canadian auto parts makers poised for green gains
TORONTO (Reuters) - A push by U.S. automakers to build more fuel efficient vehicles is playing to a strength of Canada's auto parts makers and positions them to pick up market share as the industry emerges from recession.
The Detroit-based automakers face a simple choice: adapt or die. Foreign-based manufacturers that specialize in smaller, greener vehicles are eating their lunch in car showrooms across the country, while U.S. fuel and emissions standards have tightened, forcing innovation.
That's good news for Canadian companies such as Magna International Inc, Linamar Corp, and Martinrea, all of which could benefit from their expertise in areas like weight reduction and advanced powertrains, analysts said.
"They are very well positioned because their larger customers, particularly General Motors, Ford and Chrysler, have had no money to put into research and development for the last few years, so they have been relying on the auto parts makers to invest in research and development on their behalf," said Michael Willemse, an analyst at CIBC Capital Markets in Toronto.
Shares of Linamar have risen nearly sevenfold in value since March, when the survival of both GM and Chrysler was in doubt. Martinrea shares have climbed five and a half times in value over the same period and Magna's stock has doubled.
Magna is particularly active in developing green technology. The company, which has nearly $1 billion in net cash, has made investments in technologies for electric vehicles and fuel efficiency a priority.
"I would regard Magna as extremely strongly positioned because of its technical capabilities," said David Tyerman, an analyst at Genuity Capital Markets in Toronto.
On Friday, Magna announced a partnership with the government of Canada on a new research facility for the development of thermoplastic composites, designed to cut the weight of structural car parts and make vehicles more fuel-efficient and affordable.
"It is absolutely critical that every vehicle part and/or system be focused on making a contribution to lower emissions and better fuel economy," said Don Walker, Magna's co-chief executive.
Like Magna, Brampton, Ontario-based Martinrea uses a technique called hydro-forming to make cost-effective, strong, lightweight parts. It also uses newer metal forming technologies, like hot stamping, to make lightweight pieces.
On the components side, Magna launched a joint venture with Switzerland's Brusa Elektronik in March to develop applications to target the wave of hybrid electric, plug-in hybrid, and electric vehicles being developed by the major automakers.
Magna also has the advantage of having full vehicle engineering and developing capability, due to its Magna Steyr facilities in Austria, said Tyerman. On top of building vehicles on contract for companies like BMW and Mercedes-Benz, it produces lithium-ion battery systems for Volvo's industrial fleet vehicles.
Aurora, Ontario-based Magna, which is working with Ford to bring a lithium ion battery-powered car to North America, has already built it own electric vehicle concept car -- the Mila EV -- to showcase its expertise.
FUEL EFFICIENCY A MUST
The push toward fuel efficiency comes as the U.S. government tries to wean the country off its dependence on foreign oil, while reducing greenhouse gas emissions. The initiative will boost fuel efficiency by 40 percent over current standards by 2030.
Reducing the mass of a vehicle will help achieve those tighter standards, as will improvements in propulsion systems, said Bill Pochiluk, president of West Chester, Pennsylvania-based consulting firm Automotive Compass.
"If you could only do one thing in Canada to support the supply base ... you would really support the heck out of powertrains," he said. "It's an area where there's still lots of room to grow, lots of room for improvement."
Guelph, Ontario-based Linamar is one company that has made big strides in powertrain development, said Genuity's Tyerman.
Rather than developing hybrid or electric propulsion systems, Linamar has focused mainly on making a more efficient internal combustion engine, which is still expected to be the dominant powertrain over the next 20 years.
"Linamar may be the largest beneficiary, proportionally, of all this over the next five, 10, 20 years," said Tyerman. "They are less diversified, so what they do is directly driven by fuel efficiency, and because they are a big player, they are benefiting from the rush to new engines and transmissions."
($1=$1.07 Canadian)
(Reporting by John McCrank; editing by Rob Wilson)
[Green Business]
GENEVA
Mon Dec 21, 2009 10:00am EST
WTO sets panel on China raw material export curbs
GENEVA (Reuters) - The World Trade Organization set up a panel on Monday to rule on complaints by the United States, European Union and Mexico about Chinese curbs on exports of raw materials important to their own industries.
The three, who agreed that only one panel need to look into the issue although they filed their complaints separately, argued that the restrictions pushed up costs of materials used to produce steel, aluminum and chemicals.
China had blocked a previous request for a dispute panel, to be composed of three trade experts who will have six months to come up with their findings, but under WTO rules was not able to reject it a second time.
Most disputes at the WTO, which umpires the rules for global commerce, involve attempts to block imports unfairly.
But in this case, the complainants argue that China's export restrictions give an unfair advantage to its domestic industries which can buy the raw materials involved more cheaply.
A U.S. official told the WTO's Dispute Settlement Body (DSB) that the curbs included export quotas and duties, minimum export pricing, and limits on the right to export and other measures that pushed up export prices for the goods involved.
The official, echoed by diplomats from the 27-nation EU and Mexico, argued that the Chinese measures not only violated WTO trading rules but also the terms of the agreement under which China entered the WTO in 2000.
China says the restrictions -- on exports of bauxite, coke, magnesium, manganese and other minerals -- are needed to conserve natural resources.
A Chinese representative told the DSB that Beijing felt the decision by the three to go ahead with the panel request in the case would not help find a solution, and that continuing dialogue would have been better.
He also argued that the way the three had formulated their complaint made it difficult to prepare a defense because the legal base on which it was based was not sufficiently clear.
China would ask the panel, likely to start work in the New Year, for a quick ruling on that issue, he said.
In a move ahead of Monday's WTO dispute settlement body meeting, China announced last Wednesday that it would cut export duties in 2010 on certain forms of three other base metals -- molybdenum, indium and tungsten.
At the same DSB meeting on Monday, the United States was able to block China's request for a panel to rule on U.S. additional duties on Chinese tires imposed in September.
Under WTO regulations it will not be able to block a second request, which China could make at the next meeting of the DSB, set for January 19.
Washington imposed the 35 percent duties because unions had complained that Chinese low-price tires were flooding into the country, destroying jobs.
Global trade rules allow countries to impose temporary duties as a safeguard against sudden surges of imports.
In another development at the DSB session, the Philippines rejected a call by the European Union for a panel to examine Manila's taxes on spirits. If Brussels persists in the case, as expected, a panel will be created automatically in January.
(Reporting by Robert Evans; Editing by Alison Williams)
[Green Business]
KOLKATA
Mon Dec 21, 2009 4:45am EST
India's Tata Steel to reduce carbon emissions
KOLKATA (Reuters) - India's Tata Steel is trying to bring down carbon dioxide emissions to 1.8 tonnes per tonne of steel produced by 2012 from 2 tonnes of carbon dioxide now, a top official said on Monday.
"Our target is to bring it down to 1.8 tonnes by 2012 and to 1.5 tonnes by 2020," Managing Director H.M. Nerurkar told reporters on the sidelines of a CII conference in Kolkata.
He said Tata Steel's carbon dioxide emissions were already below global industry averages of about 2.2 tonnes per tonne of steel.
He said that while it was relatively easy to bring down carbon emissions to 1.7 tonnes per tonne of steel, it would be difficult to lower them below that.
On the prospects for Tata Steel's European unit Corus, Nerurkar said there was a slight recovery in Europe and it was expecting more orders in the infrastructure sector.
Last week Corus got a 350 million euro order ($510 million) contract to supply rail tracks to French operator SNFC.
(Reporting by Niladri Bhattacharjee; Editing by John Mair)
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