Tata may cut Europe steel output if order books weak

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)

India to become second largest steel producing nation in 2012

Saturday, 26 Feb 2011

Indian minister of state for steel Mr Beni Prasad Verma said that with a targeted production capacity of 120 million tonnes by 2012, India is expected to become the second largest steel producing nation very soon.

Mr Verma while addressing the “Indian Steel: Moving to the Next Orbit” at CII Steel Summit 2011 said ‘It is indeed a matter of pride that India is the largest producer of sponge iron in the world. During the last five years, the country has achieved a compounded average growth rate of over 9.2% in consumption of steel. With this consumption base and the targeted growth in GDP coupled with the emphasis of the Government on infrastructure, housing and other steel consuming sectors.”

Expressing confidence that demand of steel would increase manifolds, Verma said that there is a need to ensure that production also keeps pace with the level of consumption.

He said “Substantial capacity is getting added in both Public as well as Private sectors. Most of the major steel projects, particularly those in the brown field sites are progressing as per schedule. New players are also emerging in the field of steel making with significant prospects.”

Mr Verma added that “The mini steel sector has also been playing an important role in the economy in generating employment and meeting localized demand of steel. Substantial capacity has been also added in this sector and this segment is expected to grow further in years to come.” (sourced:ET)