Thursday, 20 Jan 2011
TATA Steel is set double its yearly investments in its European operations to increase productivity over the next couple of years.
The company made the announcement a day before its follow on public offer hits the markets.
Mr Koushik Chatterjee group CFO of TATA Steel said that "Our focus in Europe is on restructuring. We have been investing GBP 200 million annually so far. We will raise this amount to GBP 400 million to GBP 425 million per annum."
He said that investments would be both for improving productivity and other initiatives for TATA Steel Europe.
Mr Chatterjee added that the company's overall capital expenditure would be between USD 2 billion to USD 2.5 billion annually for the next 2 to 3 years. The money spent will be utilized for capacity expansion and other related expenses.
He said that TATA Steel hopes to raise about INR 3,500 crore through the follow on offer. Part of the money raised from the FPO will be used to reduce the company's USD 10.7 billion debt.
Mr Chatterjee said that "Around INR 1,000 crore of debt will be written off through this fund raising. These measures will enable us to effectively re balance the debt."
Sourced from BL
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