Latest news with #Brazil-based
Observer
4 days ago
- Business
- Observer
New iron ore concentrator project in Oman advances
MUSCAT, JUNE 17 The development of a greenfield iron ore concentrator plant is gaining momentum at Sohar Port and Freezone, with international companies announcing key contracts for the supply of critical equipment and project management services. A joint investment of approximately $627 million is being made in the Sohar Concentrator Plant by Brazil-based global mining conglomerate Vale and leading Chinese steelmaker Jinnan Iron & Steel Group. First unveiled last October, the state-of-the-art facility will produce high-quality iron ore concentrate for the manufacture of pellets and briquettes—crucial feedstock for the production of low-carbon steel via the Direct Reduction (DR) route. The concentrator plant will process 18 million tonnes of low-grade iron ore annually, yielding 12.6 million tonnes of high-grade concentrate. Vale has committed $227 million to connect the new plant to its existing pelletisation facility in Sohar, while Jinnan will invest approximately $400 million to build, own, and operate the plant. On Tuesday, Finnish industrial machinery manufacturer Metso Corporation announced it had signed an agreement to supply core process equipment for the project. The contract includes the delivery of heavy-duty grinding machinery with a total installed capacity of 25 MW, large slurry pumps, and mill discharge pumps. Commenting on the agreement, Piia Karhu, President of the Minerals business at Metso, said: 'This project marks Jinnan's first venture in Oman, a country rich in diverse mineral resources and with a strategic vision to develop its mining sector as part of broader economic diversification efforts. As a leading supplier of process technology and services for concentrator plants worldwide, Metso is pleased to partner with Jinnan Iron & Steel Group on this greenfield initiative.' Earlier, Chinese media reported that MCC Changtian International Engineering Company, a subsidiary of China Metallurgical Group Corporation (MCC Group), had been awarded a general contracting and project management contract by Jinnan Iron & Steel for the Sohar facility. MCC Changtian's scope also includes development of a supporting stockyard, long-distance slurry transport systems, and a dry tailings stacking system. MCC Changtian is a leading Chinese engineering, procurement, and construction (EPC) company specializing in metallurgical and infrastructure projects. Once operational by mid-2027, the concentrator is expected to establish Oman as a key global supplier of DR-grade iron ore. Joint venture partner Vale has indicated it intends to replicate this investment model across its proposed Mega Hubs in other locations, including Saudi Arabia, the United Arab Emirates, Brazil, and the United States. Under this model, Vale will construct and operate ore concentration and briquetting plants, while local partners develop the required logistics infrastructure. Metso is well-established as a supplier of mineral processing equipment for Oman's industrial and mining sectors. Earlier this year, the Finnish firm signed an agreement with Mazoon Mining, a wholly owned subsidiary of Minerals Development Oman (MDO), to supply key process equipment worth $30 million for its copper concentrator plant located in Yanqul.
Yahoo
06-06-2025
- Business
- Yahoo
Kimberly-Clark, Suzano form $3.4B tissue joint venture
This story was originally published on Manufacturing Dive. To receive daily news and insights, subscribe to our free daily Manufacturing Dive newsletter. Kleenex tissue maker Kimberly-Clark and pulp producer Suzano are forming a $3.4 billion global consumer and professional tissue joint venture in an effort to bolster their long-term growth strategies, the companies announced Thursday. Suzano has agreed to pay the tissue manufacturer $1.7 billion to acquire 51% of the new entity, which will be based in the Netherlands. The deal includes 9,000 employees and 22 manufacturing facilities across Europe, Asia, the Middle East, South and Central America, Africa and Oceania. Kimberly-Clark will own the remaining 49% and retain its consumer and professional entities in the United States, as well as existing joint ventures in Mexico, South Korea and Bahrain, among other countries. The transaction is expected to close in mid-2026. The joint venture is part of Kimberly-Clark's long-term growth strategy introduced last year, Chairman and CEO Mike Hsu said in a statement. The plan aims to save the company more than $3 billion through improved productivity and accelerate the growth of its brands and businesses, particularly its North America and international personal care segments. More than 40 of Kimberly-Clark's regional brands under its international family care and professional portfolio will be transferred into the joint venture. Additionally, Suzano plans to enter a long-term license with the new company for the use of global brands, including Kleenex, Scott, Cottonelle, WypAll, Viva and Kimberly-Clark Professional, the Brazil-based pulp producer said in its press release. The deal follows Suzano's acquisition of Kimberly-Clark's Brazilian tissue assets and brands in 2023, the paper maker said in its release. The pending transaction aligns with Suzano's long-term cost-effective and growth strategy that's focused on scalable businesses where it can strengthen its operational efficiency. Once the deal closes, approximately two-thirds of Kimberly-Clark's net revenues will come from its personal care categories, progressing its long-term growth, profitability and returns on investment, according to the tissue maker's press release. The joint venture is expected to reduce Kimberly-Clark's exposure to volatile input costs, improving the company's ability to deliver expected and deliverable margins and profitability over time. Kimberly-Clark anticipates $300 million in additional costs from tariffs this year, Hsu said in his remarks during an April earnings call. The majority of products sold in the U.S. are sourced and domestically produced, Kimberly-Clark CFO Nelson Urdaneta said in the earnings call. In terms of raw materials and finished goods, the company's exposure to China, Mexico and Canada was around or less than 10% of its total cost of goods. 'If we factor in all of our raw materials and finished goods imports for our US business, 80% of our total costs in the U.S. are U.S.-based, so only 20% of our U.S. costs are exposed to tariffs,' Urdaneta said. The volatile tariff backdrop is affecting Kimberly-Clark on three fronts. The 145% duty on China drives about two-thirds of the $300 million, Urdaneta said. The U.S.'s reciprocal tariffs account for 10% and retaliatory tariffs from other countries represent 25% of the impact costs, he added. The company is working fast to mitigate the costs, Urdaneta said. Still, he added that Kimberly-Clark is in a much better position to handle many of these headwinds. 'You can't solve that overnight because we're having to reaccommodate some of the elements of our supply chain, and we intend to already be able to address about a third of the impact this year,' Urdaneta said. 'Now it'll take us through 2026 to pretty much be able to address the whole element in a consistent manner based on what's been enacted today.' The joint venture is one of many actions Kimberly-Clark has taken to make progress on its strategy and alleviate tariff costs. Last month, the Scott paper towel maker announced plans to invest more than $2 billion over the next five years in its North America segment, expanding its U.S. manufacturing capacity and modernizing its supply chain. Recommended Reading Kimberly-Clark to invest over $2B in US operations
Yahoo
05-06-2025
- Politics
- Yahoo
Supreme Court strikes down Mexico's lawsuit against US gun manufacturers
The United States Supreme Court has rejected a lawsuit from the government of Mexico that argued American gun manufacturers like Smith & Wesson failed to prevent illegal firearm sales to cartels and criminal organisations. In one of a slew of decisions handed down on Thursday, the top court decided that the Protection of Lawful Commerce in Arms Act shielded the gun manufacturers from Mexico's suit. The court's decision was unanimous. Writing for the nine-member bench, Justice Elena Kagan explained that even 'indifference' to the trafficking of firearms does not amount to willfully assisting a criminal enterprise. 'Mexico's complaint does not plausibly allege that the defendant manufacturers aided and abetted gun dealers' unlawful sales of firearms to Mexican traffickers,' Kagan wrote (PDF). 'We have little doubt that, as the complaint asserts, some such sales take place — and that the manufacturers know they do. But still, Mexico has not adequately pleaded what it needs to: that the manufacturers 'participate in' those sales.' The Mexican government's complaint, she added, 'does not pinpoint, as most aiding-and-abetting claims do, any specific criminal transactions that the defendants (allegedly) assisted'. The case stems from a complaint filed in August 2021 in a federal court in Boston, Massachusetts. In that initial complaint, the Mexican government — then led by President Andres Manuel Lopez Obrador — argued that the sheer volume of firearms illegally smuggled into its country amounted to negligence on the part of gun manufacturers. Those firearms, it said, had exacted a devastating toll on Mexican society. The country has some of the highest homicide rates in the world, with the United Nations estimating in 2023 that nearly 25 intentional killings happen for every 100,000 people. Much of that crime has been credited to the presence of cartels and other criminal enterprises operating in Mexico. The Igarape Institute, a Brazil-based think tank, estimated that Mexico's crime cost the country nearly 1.92 percent of its gross domestic product (GDP) from 2010 to 2014. The US is the largest arms manufacturer in the world — and also the largest source of illegally sourced firearms. The stream of firearms that pour into Mexico and the broader Latin America region, for instance, has been dubbed the 'iron river'. Nearly 70 percent of the illegal guns seized in Mexico from 2014 to 2018, for instance, were traced to origins in the US, according to the Department of Justice. That has led countries like Mexico to demand action from the US to limit the number of firearms trafficked abroad. In its lawsuit, Mexico targeted some of the biggest names in gun manufacturing in the US: not just Smith & Wesson, but also companies like Beretta USA, Glock Inc and Colt's Manufacturing LLC. But the firearm companies pushed back against the lawsuit, arguing they could not be held responsible for the actions of criminals in another country. The Supreme Court itself cast doubt on some of Mexico's arguments, including the idea that the gun manufacturers designed and marketed their products specifically for cartel buyers. 'Mexico focuses on production of 'military style' assault weapons, but these products are widely legal and purchased by ordinary consumers. Manufacturers cannot be charged with assisting criminal acts simply because Mexican cartel members also prefer these guns,' Justice Kagan wrote. 'The same applies to firearms with Spanish language names or graphics alluding to Mexican history,' she added. 'While they may be 'coveted by the cartels,' they also may appeal to 'millions of law-abiding Hispanic Americans.'' On Thursday, an industry trade group, the National Shooting Sports Foundation (NSSF), celebrated the Supreme Court's decision as a 'tremendous victory' against an unfair charge. It had filed an amicus brief in support of the defendants in the case. 'For too long, gun control activists have attempted to twist basic tort law to malign the highly-regulated U.S. firearm industry with the criminal actions of violent organized crime, both here in the United States and abroad,' the group's senior vice president, Lawrence G Keane, said in a statement. Keane added that he and others in the firearm industry felt 'sympathetic to plight of those in Mexico who are victims of rampant and uncontrolled violence at the hands of narco-terrorist drug cartels'. But he said the issue was about 'responsible firearm ownership', not the actions of gun manufacturers.
Business of Fashion
05-06-2025
- Business
- Business of Fashion
Farm Rio Raises Prices, Slows Exports to US
A Brazilian fashion company that's known for colourful prints sported by celebrities including Justin Bieber and Beyoncé is selectively raising prices to cushion the impact of tariffs while scaling back exports to the US. Azzas 2154 SA, owner of the Farm Rio brand, has already increased some prices in the US and is considering shifting parts of its production to Europe from China, chief executive officer Alexandre Birman said during an interview at Bloomberg's headquarters in New York. 'We don't know where tariffs will stop, but we've temporarily slowed US-bound imports,' Birman said. Azzas, one of Brazil's largest apparel exporters, is navigating turbulence in both the US and its home market, where high interest rates have fueled concerns about demand. Globally, sales for mid-tier fashion-focused brands have largely held up, but companies have warned the outlook for the second half is unclear. Brazil's apparel sales have remained healthy so far this year, but Azzas' international expansion may be hindered by higher tariffs. There's also opportunity: Birman sees an opening for Brazilian footwear manufacturing as companies look for alternative sourcing countries to avoid US duties. 'If tariffs on Chinese goods rise above 50 percent, we become competitive,' he said. 'In that case, we'd need to accelerate investments to expand local output, as China's production quality has improved significantly in recent years.' The US hiked tariffs to as high as 145 percent before they were scaled back to 30 percent for 90 days as the countries work toward an agreement. US President Donald Trump has also raised tariffs for countries across the board, and threatened the EU with a levy of 50 percent if no deal is reached. US states and small businesses are challenging the levies at the US Court of International Trade, which earlier ruled against the tariffs. A federal appeals court has temporarily allowed the tariffs to continue, but US trade policy will ultimately be decided by a combination of court rulings and trade negotiations between the US and foreign countries. In subsequent comments to Bloomberg, Birman said that Trump's policies have are causing uncertainty. If duties continue to rise, Azzas may move apparel production to Turkey or Portugal — a shift that would also support the European rollout of its Farm Rio brand. The company currently has a limited number of stores in the region. It's also looking to expand in the Middle East, Mexico and South America. The Farm Rio brand has six stores in the US and more than 100 in Brazil. Azzas, which was formed from the 2024 merger of Arezzo and Grupo Soma, has seen only a 'small impact' from tariffs so far, Birman said. The Belo Horizonte, Brazil-based company is focused on accelerating synergies and improving its cash flow as it merges operations. The group is streamlining operations with an eye on return on invested capital, he added, and hasn't ruled out deals related to its brands. The company also owns high-income brands including Animale, Maria Filó, Cris Barros and Fábula, among others. Birman also has a brand under his own name that sells shoes costing from $400 to $1,000. Actress Emily Blunt wore the shoes during the 2023 Oscar awards. Quarterly Results The integration is starting to deliver results, Birman said, with gains expected as the company streamlines logistics and shipping operations and combines areas such as e-commerce and customer service. In the first quarter, revenue rose sharply from a year earlier. Investors are watching closely for signs of progress. Ruben Couto, an analyst at Banco Santander, said in a recent note to clients that the company's negative operational cash flow and high capital expenditures contributed to higher debt last quarter. To counter this and instil financial discipline, employee bonuses are now tied to Azzas' free cash flow, Birman said. Management also plans to lower capital expenditures by 120 million reais ($21 million) next year by reducing spending on technology and opening new stores via franchisees. Birman downplayed a report from Valor Econômico, a Brazilian newspaper, that there's tension with Grupo Soma founder Roberto Jatahy. 'There are points of divergence that generate interesting debates,' Birman said of his relationship with Jatahy. He added that 'everything is governed by a valid agreement, including a 10-year lock-up plan, to uphold its terms.' Last year, the company's major shareholders agreed to a lock-up plan that restricts the sale of their stakes except in specific cases. Birman and Jatahy are major shareholders in the combined entity, and Soma generates about 30 percent of revenue. Azzas' Brazil-listed stock has advanced more than 50 percent so far this year, with much of the jump following the company's first-quarter earnings release last month. Birman added he has a 'deep: relationship with Farm Rio's founders, Katia Barros and Marcello Bastos. 'We have a fashion connection, there's a constructive relationship with strategy to improve the business,' he said. By Rachel Gamarski Learn more: Why Tariffs Haven't Led to Soaring Prices – Yet Fashion brands will eventually need to offset higher costs for imports. But after raising prices again and again since the pandemic, some retailers are more worried about alienating shoppers than how they'll pay their customs duties.
Fashion Network
04-06-2025
- Business
- Fashion Network
Beyoncé-worn fashion upstart Farm Rio raises prices, slows exports to US
A Brazilian fashion company known for colorful prints sported by celebrities, including Justin Bieber and Beyoncé, is selectively raising prices to cushion the impact of tariffs while scaling back exports to the US. Azzas 2154 SA, owner of the Farm Rio brand, has already increased some prices in the US and is considering shifting parts of its production to Europe from China, chief executive officer Alexandre Birman said during an interview at Bloomberg's headquarters in New York. 'We don't know where tariffs will stop, but we've temporarily slowed US-bound imports,' Birman said. Azzas, one of Brazil's largest apparel exporters, is navigating turbulence in both the US and its home market, where high interest rates have fueled concerns about demand. Globally, sales for mid-tier fashion-focused brands have largely held up, but companies have warned that the outlook for the second half is unclear. Brazil's apparel sales have remained strong so far this year, but higher tariffs could hinder Azzas' international expansion. Still, Birman sees opportunity in Brazilian footwear manufacturing as companies seek alternative sourcing countries to avoid US duties. 'If tariffs on Chinese goods rise above 50%, we become competitive,' he said. 'In that case, we'd need to accelerate investments to expand local output, as China's production quality has improved significantly in recent years.' The US hiked tariffs to as high as 145% before scaling back to 30% for 90 days as the countries worked toward an agreement. US President Donald Trump has also raised tariffs for countries across the board and threatened the EU with a levy of 50% if no deal is reached. US states and small businesses are challenging the levies at the US Court of International Trade, which had previously ruled against the tariffs. Although a federal appeals court has temporarily allowed them to remain in effect, the future of US trade policy will depend on a mix of court decisions and ongoing negotiations with foreign governments. In subsequent comments to Bloomberg, Birman said that Trump's policies are causing uncertainty. If duties continue to rise, Azzas may move apparel production to Turkey or Portugal — a shift that would also support the European rollout of its Farm Rio brand. The company currently has a limited number of stores in the region. It's also looking to expand in the Middle East, Mexico and South America. The Farm Rio brand has six stores in the US and more than 100 in Brazil. Birman said that Azzas, formed from the 2024 merger of Arezzo and Grupo Soma, has seen only a 'small impact' from tariffs so far. The Belo Horizonte, Brazil-based company is focused on accelerating synergies and improving its cash flow as it merges operations. He added that the group is streamlining operations with an eye on return on invested capital and hasn't ruled out deals related to its brands. The company also owns high-income brands including Animale, Maria Filó, Cris Barros and Fábula, among others. Birman also has a brand under his own name that sells shoes costing from $400 to $1,000. Actress Emily Blunt wore the shoes during the 2023 Oscars. Quarterly results Birman said the integration is starting to deliver results, with gains expected as the company streamlines logistics and shipping operations and combines areas such as e-commerce and customer service. Revenue rose sharply in the first quarter compared to a year earlier. Investors are watching closely for signs of progress. Ruben Couto, an analyst at Banco Santander, said in a recent note to clients that the company's negative operational cash flow and high capital expenditures contributed to higher debt last quarter. To counter this and instill financial discipline, employee bonuses are now tied to Azzas' free cash flow, Birman said. Management also plans to lower capital expenditures by 120 million reais ($21 million) next year by reducing spending on technology and opening new stores via franchisees. Birman downplayed a report from Valor Econômico, a Brazilian newspaper, that there's tension with Grupo Soma founder Roberto Jatahy. 'There are points of divergence that generate interesting debates,' Birman said of his relationship with Jatahy. He added that 'everything is governed by a valid agreement, including a 10-year lock-up plan, to uphold its terms.' Last year, the company's major shareholders agreed to a lock-up plan that restricts the sale of their stakes except in specific cases. Birman and Jatahy are major shareholders in the combined entity, and Soma generates about 30% of the revenue. Azzas' Brazil-listed stock has advanced more than 50% so far this year, with much of the jump following the company's first-quarter earnings release last month. Birman added he has a 'deep' relationship with Farm Rio's founders, Katia Barros and Marcello Bastos. 'We have a fashion connection; there's a constructive relationship with strategy to improve the business,' he said.
