Financial Daily from THE HINDU group of publications
Wednesday, Apr 13, 2005

Port Info

Group Sites

Corporate - New Projects

Tata Steel plans capacity expansion at units in China

Ambarish Mukherjee

New Delhi , April 12

TATA Steel will expand the capacity of its value-added products at three units located in China. These units (two long-product units and one wire drawing unit) have come under the fold of Tata Steel, following the acquisition of NatSteel Asia's steel business."Though the specifics like what the type of value addition would be taken up in which location are not finalised yet, the broad strategy is finalised," company sources said.

The company will be manufacturing semi-finished steel in India and then take it to its facilities in China for further value addition.

hese could be galvanised sheets, rebars, wire rods and wires, the sources said. Production of semi-finished steel will be undertaken in India to take advantage of the lower cost of production here, while value addition will be done in China.

The sources said the cost of production is around $50 per tonne cheaper in India as compared to China. The three units of NatSteel in China have a combined capacity of 7.96 lakh tonnes.

The long product plant located at Xiamen has a rolling capacity of four lakh tonnes annually.

The second plant located in Wugin has a rolling capacity of 3.1 lakh tonnes and the wire-drawing unit at Wuxi has an annual capacity of 86,000 tonnes.

In February, Tata Steel acquired a 100 per cent stake in NatSteel Pte Ltd, a wholly-owned special purpose vehicle created by the NatSteel group to hive off its entire steel business.

The deal was valued at 486.4 million Singapore dollars (approximately Rs 1,313 crore) subject to certain adjustments, including those for net debt, minority interest, other liabilities and working capital variance relative to 225 million Singapore dollars.

The acquisition also includes a 26 per cent equity interest owned by NatSteel in Southern Steel Berhad, a 1.3-million tonne steelmaker in Malaysia.

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Reva to develop fuel cell cars for IOC pilot project

L&T bags Rs 165-cr order from Bangalore water supply board
BEL scouting for R&D, telecom partners
Apollo Tyres hikes prices by 3-4 pc
ICICI Bank to sell Crisil stake to S&P
Lodha case: HC asks both parties to file citations
Holcim fails to get controlling stake in ACC
Essel Propack acquires UK's Telcon Packaging
Chrys Cap divests 7.56 pc in IVRCL
Khaitans shed 9% stake in Kilburn Engg
Vesuvius doubling Kolkata unit capacity
Tata Steel plans capacity expansion at units in China
Tata Coffee plans to set up facility in Uganda
PFC may go public in June
GV Films plans 7:10 rights issue
Survey of sick units Dakshina Kannada dt.
HLL looks to beverages for foods biz growth
Ashok Leyland sales up 12.5 pc; at all-time high

The Hindu Group: Home | About Us | Copyright | Archives | Contacts | Subscription
Group Sites: The Hindu | Business Line | The Sportstar | Frontline | The Hindu eBooks | The Hindu Images | Home |

Copyright 2005, The Hindu Business Line. Republication or redissemination of the contents of this screen are expressly prohibited without the written consent of The Hindu Business Line