Keep Us Strong WikiLeaks logo

Currently released so far... 97115 / 251,287

Articles

Browse latest releases

Browse by creation date

Browse by origin

A B C D F G H I J K L M N O P Q R S T U V W Y Z

Browse by tag

A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
ETRD EAGR ETTC EAID ECON EFIN ECIN EINV ELAB EAIR ENRG EPET EWWT ECPS EIND EMIN ELTN EC ETMIN EUC EZ ET ELECTIONS ENVR EU EUN EG EINT ER ECONOMICS ES EMS ENIV EEB EN ECE ECOSOC EK ENVIRONMENT EFIS EI EWT ENGRD ECPSN EXIM EIAD ERIN ECPC EDEV ENGY ECTRD EPA ESTH ECCT EINVECON ENGR ERTD EUR EAP EWWC ELTD EL EXIMOPIC EXTERNAL ETRDEC ESCAP ECO EGAD ELNT ECONOMIC ENV ETRN EIAR EUMEM ENRGPARMOTRASENVKGHGPGOVECONTSPLEAID EREL ECOM ECONETRDEAGRJA ETCC ETRG ECONOMY EMED ETR ENERG EITC EFINOECD EURM EENG ERA EXPORT ENRD ECONEINVETRDEFINELABETRDKTDBPGOVOPIC EGEN EBRD EVIN ETRAD ECOWAS EFTA ECONETRDBESPAR EGOVSY EPIN EID ECONENRG EDRC ESENV ETT EB ENER ELTNSNAR ECHEVARRIA ETRC EPIT EDUC ESA EFI ENRGY ESCI EE EAIDXMXAXBXFFR EETC ECIP EIAID EIVN EBEXP ESTN EING EGOV ETRA EPETEIND ELAN ETRDGK EAIDRW ETRDEINVECINPGOVCS EPEC ENVI ELN EAG EPCS EPRT EPTED ETRB EUM EAIDS EFIC EFINECONEAIDUNGAGM EAIDAR ESF EIDN ELAM EDU EV EAIDAF ECN EDA EXBS EINTECPS ENRGTRGYETRDBEXPBTIOSZ EPREL EAC EINVEFIN ETA EAGER EINDIR ECA ECLAC ELAP EITI EUCOM ECONEFINETRDPGOVEAGRPTERKTFNKCRMEAID EARG ELDIN EINVKSCA ENNP EFINECONCS EFINTS ECCP ETC EAIRASECCASCID EINN ETRP EAIDNI EFQ ECOQKPKO EGPHUM EBUD ECONEINVEFINPGOVIZ ENERGY ELB EINDETRD EMI ECONEFIN EIB EURN ETRDEINVTINTCS EIN EFIM ETIO ELAINE EMN EATO EWTR EIPR EINVETC ETTD ETDR EIQ ECONCS EPPD ENRGIZ EISL ESPINOSA ELEC EAIG ESLCO EUREM ENTG ERD EINVECONSENVCSJA EEPET EUNCH ECINECONCS ETRO ETRDECONWTOCS ECUN EFND EPECO EAIRECONRP ERGR ETRDPGOV ECPN ENRGMO EPWR EET EAIS EAGRE EDUARDO EAGRRP EAIDPHUMPRELUG EICN ECONQH EVN EGHG ELBR EINF EAIDHO EENV ETEX ERNG ED
KMDR KPAO KPKO KJUS KCRM KGHG KFRD KWMN KDEM KTFN KHIV KGIC KIDE KSCA KNNP KHUM KIPR KSUM KISL KIRF KCOR KRCM KPAL KWBG KN KS KOMC KSEP KFLU KPWR KTIA KSEO KMPI KHLS KICC KSTH KMCA KVPR KPRM KE KU KZ KFLO KSAF KTIP KTEX KBCT KOCI KOLY KOR KAWC KACT KUNR KTDB KSTC KLIG KSKN KNN KCFE KCIP KGHA KHDP KPOW KUNC KDRL KV KPREL KCRS KPOL KRVC KRIM KGIT KWIR KT KIRC KOMO KRFD KUWAIT KG KFIN KSCI KTFIN KFTN KGOV KPRV KSAC KGIV KCRIM KPIR KSOC KBIO KW KGLB KMWN KPO KFSC KSEAO KSTCPL KSI KPRP KREC KFPC KUNH KCSA KMRS KNDP KR KICCPUR KPPAO KCSY KTBT KCIS KNEP KFRDCVISCMGTCASCKOCIASECPHUMSMIGEG KNNB KGCC KINR KPOP KMFO KENV KNAR KVIR KDRG KDMR KFCE KNAO KDEN KGCN KICA KIMMITT KMCC KLFU KMSG KSEC KUM KCUL KMNP KSMT KCOM KOMCSG KSPR KPMI KRAD KIND KCRP KAUST KWAWC KTER KCHG KRDP KPAS KITA KTSC KPAOPREL KWGB KIRP KJUST KMIG KLAB KTFR KSEI KSTT KAPO KSTS KLSO KWNN KPOA KHSA KNPP KPAONZ KBTS KWWW KY KJRE KPAOKMDRKE KCRCM KSCS KWMNCI KESO KWUN KPLS KIIP KEDEM KPAOY KRIF KGICKS KREF KTRD KFRDSOCIRO KTAO KJU KWMNPHUMPRELKPAOZW KEN KO KNEI KEMR KKIV KEAI KWAC KRCIM KWCI KFIU KWIC KCORR KOMS KNNO KPAI KBWG KTTB KTBD KTIALG KILS KFEM KTDM KESS KNUC KPA KOMCCO KCEM KRCS KWBGSY KNPPIS KNNPMNUC KWN KERG KLTN KALM KCCP KSUMPHUM KREL KGH KLIP KTLA KAWK KWMM KVRP KVRC KAID KSLG KDEMK KX KIF KNPR KCFC KFTFN KTFM KPDD KCERS KMOC KDEMAF KMEPI KEMS KDRM KEPREL KBTR KEDU KNP KIRL KNNR KMPT KISLPINR KTPN KA KJUSTH KPIN KDEV KTDD KAKA KFRP KWNM KTSD KINL KJUSKUNR KWWMN KECF KWBC KPRO KVBL KOM KFRDKIRFCVISCMGTKOCIASECPHUMSMIGEG KEDM KFLD KLPM KRGY KNNF KICR KIFR KM KWMNCS KAWS KLAP KPAK KDDG KCGC KID KNSD KMPF KPFO KDP KCMR KRMS KNPT KNNNP KTIAPARM KDTB KNUP KPGOV KNAP KNNC KUK KSRE KREISLER KIVP KQ KTIAEUN KPALAOIS KRM KISLAO KWM KFLOA
PHUM PINR PTER PGOV PREL PREF PL PM PHSA PE PARM PINS PK PUNE PO PALESTINIAN PU PBTS PROP PTBS POL POLI PA PGOVZI POLMIL POLITICAL PARTIES POLM PD POLITICS POLICY PAS PMIL PINT PNAT PV PKO PPOL PERSONS PING PBIO PH PETR PARMS PRES PCON PETERS PRELBR PT PLAB PP PAK PDEM PKPA PSOCI PF PLO PTERM PJUS PSOE PELOSI PROPERTY PGOVPREL PARP PRL PNIR PHUMKPAL PG PREZ PGIC PBOV PAO PKK PROV PHSAK PHUMPREL PROTECTION PGOVBL PSI PRELPK PGOVENRG PUM PRELKPKO PATTY PSOC PRIVATIZATION PRELSP PGOVEAIDUKNOSWGMHUCANLLHFRSPITNZ PMIG PREC PAIGH PROG PSHA PARK PETER POG PHUS PPREL PS PTERPREL PRELPGOV POV PKPO PGOVECON POUS PGOVPRELPHUMPREFSMIGELABEAIDKCRMKWMN PWBG PMAR PREM PAR PNR PRELPGOVEAIDECONEINVBEXPSCULOIIPBTIO PARMIR PGOVGM PHUH PARTM PN PRE PTE PY POLUN PPEL PDOV PGOVSOCI PIRF PGOVPM PBST PRELEVU PGOR PBTSRU PRM PRELKPAOIZ PGVO PERL PGOC PAGR PMIN PHUMR PVIP PPD PGV PRAM PINL PKPAL PTERE PGOF PINO PHAS PODC PRHUM PHUMA PREO PPA PEPFAR PGO PRGOV PAC PRESL PORG PKFK PEPR PRELP PREFA PNG PGOVPHUMKPAO PRELECON PINOCHET PFOR PGOVLO PHUMBA PRELC PREK PHUME PHJM POLINT PGOVPZ PGOVKCRM PGOVE PHALANAGE PARTY PECON PEACE PROCESS PLN PRELSW PAHO PEDRO PRELA PASS PPAO PGPV PNUM PCUL PGGV PSA PGOVSMIGKCRMKWMNPHUMCVISKFRDCA PGIV PRFE POGOV PEL PBT PAMQ PINF PSEPC POSTS PHUMPGOV PVOV PHSAPREL PROLIFERATION PENA PRELTBIOBA PIN PRELL PGOVPTER PHAM PHYTRP PTEL PTERPGOV PHARM PROTESTS PRELAF PKBL PRELKPAO PKNP PARMP PHUML PFOV PERM PUOS PRELGOV PHUMPTER PARAGRAPH PERURENA PBTSEWWT PCI PETROL PINSO PINSCE PQL PEREZ PBS

Browse by classification

Community resources

courage is contagious

Viewing cable 08PRETORIA2402, COLUMBUS STAINLESS STEEL AND ASME NUCLEAR STANDARDS

If you are new to these pages, please read an introduction on the structure of a cable as well as how to discuss them with others. See also the FAQs

Understanding cables
Every cable message consists of three parts:
  • The top box shows each cables unique reference number, when and by whom it originally was sent, and what its initial classification was.
  • The middle box contains the header information that is associated with the cable. It includes information about the receiver(s) as well as a general subject.
  • The bottom box presents the body of the cable. The opening can contain a more specific subject, references to other cables (browse by origin to find them) or additional comment. This is followed by the main contents of the cable: a summary, a collection of specific topics and a comment section.
To understand the justification used for the classification of each cable, please use this WikiSource article as reference.

Discussing cables
If you find meaningful or important information in a cable, please link directly to its unique reference number. Linking to a specific paragraph in the body of a cable is also possible by copying the appropriate link (to be found at theparagraph symbol). Please mark messages for social networking services like Twitter with the hash tags #cablegate and a hash containing the reference ID e.g. #08PRETORIA2402.
Reference ID Created Released Classification Origin
08PRETORIA2402 2008-11-03 12:07 2011-08-24 01:00 UNCLASSIFIED//FOR OFFICIAL USE ONLY Embassy Pretoria
VZCZCXRO1609
RR RUEHBZ RUEHDU RUEHJO RUEHMR RUEHRN
DE RUEHSA #2402/01 3081207
ZNR UUUUU ZZH
R 031207Z NOV 08
FM AMEMBASSY PRETORIA
TO RUEHC/SECSTATE WASHDC 6255
INFO RUCPDC/DEPT OF COMMERCE WASHDC
RHEBAAA/DEPT OF ENERGY WASHINGTON DC
RUEHC/DEPT OF LABOR WASHDC
RUEHBJ/AMEMBASSY BEIJING 0868
RUEHBY/AMEMBASSY CANBERRA 0744
RUEHLO/AMEMBASSY LONDON 1620
RUEHMO/AMEMBASSY MOSCOW 0879
RUEHFR/AMEMBASSY PARIS 1456
RUEHOT/AMEMBASSY OTTAWA 0710
RUCNSAD/SOUTHERN AF DEVELOPMENT COMMUNITY COLLECTIVE
UNCLAS SECTION 01 OF 04 PRETORIA 002402 
 
SIPDIS 
SENSITIVE 
 
STATE PLEASE PASS USAID 
STATE PLEASE PASS USGS 
DEPT FOR AF/S, EEB/ESC AND CBA 
DOE FOR SPERL AND PERSON 
DOC FOR ITA/DIEMOND 
 
E.O.   12958: N/A 
TAGS: EPET ENRG EMIN EINV EIND ETRD ELAB SF
SUBJECT: COLUMBUS STAINLESS STEEL AND ASME NUCLEAR STANDARDS 
WORKSHOP 
 
1.  (SBU) SUMMARY: The U.S. Embassy supported the American Society 
of Mechanical Engineers (ASME) Nuclear Codes and Standards Workshop 
in Johannesburg, which successfully promoted Westinghouse's bid for 
significant new nuclear build in South Africa (septel).  Delegates 
visited Columbus Stainless Ltd., Africa's only stainless steel 
production plant and an aspiring supplier to the potential South 
African and global nuclear industry, on October 9.  Columbus is a 
fully-integrated, high-tech plant developed by Spanish stainless 
steel giant Acerinox S.A.  The plant is currently operating at 30-40 
percent of capacity due to global financial turmoil and the drop-off 
of export orders, particularly from China and Asia.  End Summary. 
 
-------------------------------------------- 
ASME Workshop on Nuclear Codes and Standards 
-------------------------------------------- 
 
2.  (SBU) Columbus Stainless Ltd. is Africa's only stainless steel 
plant and is one of three plants owned and operated by Spanish 
stainless steel giant Acerinox S.A.  Minerals and Energy Specialist 
toured the Columbus plant in Middelburg, Mpumalanga as the final day 
of the ASME Nuclear Codes and Standards Workshop held in 
Johannesburg on October 7-9, 2008 (septel).  The program was a 
cooperative initiative promoted by U.S.-based ASME (American Society 
of Mechanical Engineers) and the Johannesburg-based U.S. Commercial 
Service in support of Westinghouse's bid for new nuclear build and 
the potential localization and globalization of the South African 
nuclear industry. 
 
3.  (SBU) The SAG plans to construct an ambitious 20,000 MW of new 
nuclear power capacity over the next 20 years.  The initial tender 
is for 3,000 MW, representing two-three individual reactors.  The 
larger fleet is intended to comprise a mix of conventional 
pressurized water reactor (PWR) plants and locally-developed Pebble 
Bed Modular Reactor plants of 165 MW each.  The ASME workshop was 
co-sponsored by Westinghouse and Areva of France, which are the two 
preferential bidders for the supply and construction of the 
conventional PWRs. 
 
4.  (SBU) Some 400 delegates from South Africa's supplier and 
services industries attended the ASME workshop, showing strong 
interest from potential nuclear suppliers in adopting ASME 
standards.  ASME is a U.S.-based, independent organization that sets 
globally-recognized performance, testing, safety and numerous other 
codes and standards for engineering structures and products.  ASME 
also provides testing services that enable products manufactured and 
built under local or other international codes and standards to be 
certified compliant with ASME standards and codes.  The workshop 
covered most aspects of ASME's work and the requirements for 
potential certification of South Africa's Pebble Bed Modular Reactor 
power plant now under development, plus products used in a nuclear 
plant that may be exported. 
 
---------------------- 
Global Stainless Steel 
---------------------- 
 
5.  (SBU) The global long-term growth rate for stainless steel has 
averaged more than 6 percent per year, equivalent to 1.7 million 
Qaveraged more than 6 percent per year, equivalent to 1.7 million 
tons of new steel each year.  Production for 2008 is estimated to be 
28-29 million tons.  Global production and South African exports of 
stainless steel in millions of tons are: 
 
 
Production 
Country        2008(6-mths)  2007        2006 
W Europe       4.862         8.669       9.972 
C-E Europe       194           364         363 
Americas       1.357         2.604       2.951 
Asia           8.344        16.200      15.074 
Total         14.776        27.836      28.359 
 
South African Exports 
       Total        Asia       W Europe   NAFTA 
2007   506,000      220,000    132,000    92,000 
2006   515,000      175,000    218,000    73,000 
 
PRETORIA 00002402  002 OF 004 
 
 
 
6.  (SBU) Stainless steel represents a family of chromium and 
nickel-containing alloys that are corrosion-resistant and retain 
tensile strength at high temperatures.  These alloys contain at 
least 11 percent chromium, which forms a chrome-oxide layer on the 
metal that makes stainless steel corrosion resistant.  This metal 
surface layer regenerates itself if damaged as long as oxygen is 
available.  The stainless steel family comprises four main branches 
and Columbus Stainless manufactures the two most commonly used 
types, namely ferritic and austenitic steels.  Ferritic steels 
contain 12-18 percent chromium, while the austenitic steels have an 
additional 8-10 percent nickel.  Some steels also have titanium, 
molybdenum, and other elements added in minor quantities to enhance 
properties such as resistance to pitting corrosion and 
stress-corrosion cracking. 
 
---------------------------------------- 
Columbus Stainless - Africa's Lone Plant 
---------------------------------------- 
 
7.  (SBU) Columbus Stainless is a technologically advanced, fully 
integrated operation, situated in Middleburg in Mpumalanga Province. 
 Columbus began life as a South African-owned, ferro-chrome smelter 
and was converted into a stainless steel plant in 1966.  Spanish 
stainless steel giant Acerinox bought a 64 percent share in 2002 and 
increased this to 76 percent in 2005.  Other shareholders are the 
state-owned Industrial Development Corporation (IDC) and private 
company Samancor, each with 12 percent.  Acerinox has spent about 
$310 million since 2002 to expand and upgrade Columbus' cold-rolling 
facilities.  It also has plants in Spain and Kentucky (U.S.) and 
produces some 10-11 percent of global stainless steel.  Columbus 
Stainless was catapulted into the major league of stainless steel 
producers by Spanish company Acerinox S.A.'s take-over of the 
company.  Acerinox invested $310 million to introduce new technology 
and skills into Columbus and to expand its capacity to produce 
world-quality, higher-valued, cold-rolled steel.  Columbus 
Management says that Columbus' productivity and steel quality is 
slightly below that of the Kentucky plant, but ahead of the Spanish 
mother plant, and still improving. 
 
8.  (SBU) Stainless steel offers unique properties needed in nuclear 
plants for piping and tubing in heat exchangers and for containers 
for the long-term storage of spent nuclear fuel and other highly 
radioactive materials.  Columbus intends to tender for the supply of 
stainless steel materials and components for the nuclear facilities. 
 It also seeks to have its products compliant with ASME codes and 
standards in order to market to the international nuclear industry. 
 
9.  (SBU) Columbus has the capacity to produce 1 million tons of 
stainless steel per year, but would require additional capital and a 
20-30 MW furnace to reach this production level.  Implementation 
depends on demand growth and the availability of power.  Columbus 
has a maximum cold-rolling capacity of 600,000 tons of value-added 
stainless steel and 150,000 tons of hot-rolled steel plate, both 
Qstainless steel and 150,000 tons of hot-rolled steel plate, both 
subject to demand.  Final cold-rolled products include coil 
(5.8-0.25 millimeters thick) and sheets in various lengths and 
widths.  A lower-value hot-rolled product is also produced as sheet, 
slab, or coil according to customer specifications.  Exports account 
for 80 percent of production.  Feed for the smelter consists mainly 
of some 600,000 tons of carbon-steel scrap, 250-300,000 tons of 
ferro-chrome supplied by the neighboring Samancor plant, and 
50-70,000 tons of nickel ingots supplied locally and from imports. 
 
--------------------------------------------- ------ 
Impact of the Global Downturn on Columbus Stainless 
--------------------------------------------- ------ 
 
10.  (SBU) Columbus' output has declined to 30-40 percent of 
capacity since August.  China was a major purchaser of stainless 
steel from Columbus prior to the Olympic Games, but has since not 
placed an order.  Columbus only produces on order and is therefore 
immediately affected by any downturn in economic activity. 
Discussions with management indicate that this cut in output is not 
the worst that the company has seen over its history and no layoffs 
are anticipated.  Management states that Columbus has not retrenched 
 
PRETORIA 00002402  003 OF 004 
 
 
staff in the last ten years, if ever.  The price of benchmark "304" 
stainless steel has dropped from $5,500 to $3,500 per ton over the 
last three months.  Nickel's price has dropped from $55,000 to 
$13,000 per ton during the same period.  At its peak price, nickel 
accounted for 70-80 percent of Columbus' production costs.  Much of 
the nickel is purchased on consignment and is costed using the LME 
price when consumed.  The current commodity downturn is expected to 
be short as China (and Asia) is likely to return to the market 
within the next few months.  Prices for stainless steel have fallen 
by some 36 percent, but Columbus is still profitable.  The 60-70 
percent volume decline is a concern, and Columbus is looking to 
increase penetration into Africa and to increase sales into the 
nuclear industry. 
 
--------------------------- 
The Stainless Steel Process 
--------------------------- 
 
11.  (SBU) Columbus management presented details of the stainless 
steel process.  Normal carbon steel scrap is melted in an electric 
arc furnace (EAF) with measured quantities of ferro-chrome and 
nickel, plus other "ingredients" as required to match the 
specification of the stainless steel product ordered.  The molten 
metal is refined and cast into slabs of 900 mm to 1,600 mm wide and 
200 mm thick, and then cut into lengths of between 4 and 12 metres. 
The slabs are hot-rolled at about 1,250 degrees Celsius to the 
desired thickness and then either coiled (black coil) or cut into 
plate (black plate).  Each coil weighs between 20 and 30 tons and 
the steel thickness can be between 8.0 mm and 3.0 mm.  Plate 
thickness ranges between 65.0 mm and 3.0 mm.  After a clean-up 
treatment, these products can be sold or cold-rolled to produce a 
higher-value product.  Cold rolling and finishing takes place on a 
heavy gauge cold mill to produce a smooth, shiny-finished, stainless 
steel.  The thickness range of the cold-rolled product is between 
5.8 mm and 0.25 mm.  The steel may be further treated to produce a 
brighter, flat surface or a bright, permanent finish.  The coils can 
then be cut and polished as required by the customer. 
 
 
--------------------------------------------- ---- 
Opportunities for Stainless Steel in South Africa 
--------------------------------------------- ---- 
 
12.  (SBU) Columbus management have identified specific growth areas 
within the South African market to grow the company's sales.  These 
include: 
 
-- the stadiums for the 2010 FIFA World Cup, where stadiums are 
being built from scratch and are steel-intensive; 
 
-- the rapid-rail (Gautrain) mass transit project as a significant 
user of stainless steel, plus other rail and rolling stock 
expansions; 
 
-- the power sector, where Eskom has a massive program to build new 
generation capacity, including two or three 4,800 MW coal-fired 
plants and new nuclear plants; 
 
-- the resource sector where new mines, plants, smelters and 
refineries are being established or planned, both in South Africa 
and elsewhere in Africa; and 
 
-- the manufacturing sector, including vehicle exhaust systems and 
Q-- the manufacturing sector, including vehicle exhaust systems and 
catalytic converters (currently at 15 percent of the global market) 
and bulk tank containers (which account for about 50 percent of the 
world's output.) 
 
13.  (SBU) Columbus is an eager potential supplier to the nuclear 
industry and graciously stepped up to offer a tour for delegates of 
the ASME Nuclear Codes and Standards Workshop.   This provided 
delegates an opportunity to observe challenges and opportunities in 
bringing South African industry up to ASME standards for the nuclear 
industry.  Columbus is not there yet, but they are making the effort 
and embraced the spirit of the ASME event. 
 
 
PRETORIA 00002402  004 OF 004 
 
 
LALIME