Tata Steel expects its European business to deliver better performance in the coming quarters.
SEATTLE (Scrap Monster): Leading steelmaker Tata Steel reiterated its earlier commitment to double steel production capacity by the end of this decade. Also, the company has decided not to cut its previously announced INR 12,000 crore capital expenditure plan, despite fears of slowdown in steel demand.
According to T.V. Narendran, Chief Executive Officer and Managing Director, Tata Steel, the company has strengthened its balance sheet over the past couple of years, thus repaying a lot of foreign debt. The company targets brownfield expansions, which will offer more control in managing the pace of growth. The company continues to maintain bullish outlook on the prospects of steel in India, he added.
India is in a very good competitive position to export steel. The Chinese steel production may face a slowdown as the companies are seen making losses, especially on account of high coal prices. Unlike China, Japan and Korea which imports raw materials to make steel, India has huge reserves of iron ore, thereby ensuring cost-effective steel production, Narendran added.
Tata Steel expects its European business to deliver better performance in the coming quarters. It must be noted that the European arm had delivered a positive surprise during the prior quarter, primarily as a result of the company’s increased focus on operational stability.
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