Wed Oct 12, 2011
* Working at 80-85 pct of capacity vs 85-90 pct in H1 2011
* Tata Steel trying to reduce stocks-Köhler
LONDON Oct 12 (Reuters) - Tata Steel , the world's No. 7 steelmaker, may cut production further in Europe in the next few months if steel orders weaken, Karl-Ulrich Köhler, CEO of Tata Steel in Europe said on Wednesday.
The company had already cut production capacity from 85-90 percent in the first half this year to 80-85 percent currently, it said.
"We don't exactly know where this is going to go in the next couple of months," Köhler said during a press briefing, talking about the fragile economic situation in Europe.
"If it's a temporary thing we will find temporary solutions. We are not producing to stock, we are reducing stocks, that's part of our efficiency programme and if the order book is not supporting production we can certainly reduce further."
In September, Tata Steel's European unit, shut down one of its four blast furnaces in Scunthorpe, United Kingdom. Another blast furnace at the site was idled a few years ago on a long-term basis, while the two remaining furnaces are currently operating. Tata Steel Europe is the second-largest steel producer in Europe with an annual capacity of 18 million tonnes.
(sourced Reuters)
* Working at 80-85 pct of capacity vs 85-90 pct in H1 2011
* Tata Steel trying to reduce stocks-Köhler
LONDON Oct 12 (Reuters) - Tata Steel , the world's No. 7 steelmaker, may cut production further in Europe in the next few months if steel orders weaken, Karl-Ulrich Köhler, CEO of Tata Steel in Europe said on Wednesday.
The company had already cut production capacity from 85-90 percent in the first half this year to 80-85 percent currently, it said.
"We don't exactly know where this is going to go in the next couple of months," Köhler said during a press briefing, talking about the fragile economic situation in Europe.
"If it's a temporary thing we will find temporary solutions. We are not producing to stock, we are reducing stocks, that's part of our efficiency programme and if the order book is not supporting production we can certainly reduce further."
In September, Tata Steel's European unit, shut down one of its four blast furnaces in Scunthorpe, United Kingdom. Another blast furnace at the site was idled a few years ago on a long-term basis, while the two remaining furnaces are currently operating. Tata Steel Europe is the second-largest steel producer in Europe with an annual capacity of 18 million tonnes.
(sourced Reuters)
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