Ad Here  
May
June
July
August
September
October
 
 
Hyundai India achieves 7 mn production at Chennai factory E.I.D Parry (India) Ltd: another sweet year Preparing for the next growth curve Back in growth mode He excels in the nuts and bolts of entrepreneurship LVB posts 31 per cent growth in Q1 net profit PPP model for infrastructure development AL wins Deming prize again TVS Srichakra plans capacity expansion Smooth sailing of SAIL A welcome initiative-even critics are recognised Eyes strong growth in 2016-17 L & T set bigger ambitions in defence business Tata Motors charts investments in PV and CV businesses IOB on turnaround path New India Assurance posts impressive show Land wars Are they really independent? Carnival Films acquiring 3000 screens pan India Hindalco – re-rating Chinese smart phones flourish in small towns too! Toyota and Suzuki to introduce EVs in India by 2020 Daimler’s truck exports from Chennai cross 5000 units TVS Automobile invests Rs.75 crore in start-up firms Tata Steel, ThyssenKrupp sign MoU to merge European units Singur minus Nano – victory or folly? HPCL plans Rs.61,000 crore capex over 5-years L&T profit up by 11 per cent PSU non-life firms seek to protect share CAPITAL NOTES Aurobindo Pharmacy: good turnaround Vellayan is back, after 150 days Emami – a new growth mantra TI Cycles plans retail expansion to drive sales for premium bicycles Is this a generation gap? RoC in the dock... Kone India eyes further growth in elevator market The gainers and the losers Shriram Life clocks more than Rs.1000 crore premium in 2015-16 Forging industry worried over lower supply of steel and its price Yamaha unveils scooter boutique 29 per cent jump in TCS revenues L & T’s floating dock for navy Tata Motors joins compact SUV bandwagon with Nexon Ode to Ratan Tata Tata Motors aims to be among the Top 3 global CV & PV firm Wabco launches safety system Consolidating leadership position in smartphones Ponni Sugars (Erode) Ltd: not so sweet 2012-13 Tata gets 4-star rating for Zest Maruti – for young buyers Gamesa to set up a plant in Nellore AL secures orders for 3600 buses Rane targets Rs.5500 crore topline by 2018-19 Record two-wheeler sales ITC – steep excise hike Sivasankaran enters taxi space to take on Uber and Ola Sundram Fasteners rejigs international Hyundai to focus on SUVs and AMT variants Smartphone onslaught by Chinese brands It takes two to tango Increasing market share Dish TV – subscriber additions encouraging M & M unveils driverless technology for tractors V-Guard launches app-enabled water heater system Bajaj Finserv – Q1: fare well When small is not so beautiful… Solar installations exceed 2015 capacity in five months Tata Motors bets on new launches A niche in FMCG business... Mercedes-Benz sales continue to zoom Last stages Welcome focus to improve rural India... ITC chairman calls for policy impetus to transform agriculture The unexpected exit AL introduces Guru & Partner From the toughest to the best year Right to privacy – now it’s fundamental! Daimler grows sales and share in India L&T bags the Mumbai Trans-harbour link order Nissan exit shouldn’t affect ALL Titan Company – sales recovery to kick in Housing demand revival Michelin to double Chennai capacity TN government keen on revival of operations at Nokia complex
 
Tata Steel, ThyssenKrupp sign MoU to merge European units

The massive expansion of steel capacity by China and its aggressive marketing, often offering at low prices, had severely impacted steel producers in developed countries in Europe, Japan and elsewhere. Tata Steel Ltd (TSL) that acquired the European giant Corus Steel, much larger than its Indian operations, was among the severely hit. TSL has been vigorously looking out for solutions to get out of their European operations that were pulling down the operations of the Tatas in India.

There was the added problem of tackling the huge burden of employee costs. Last year the company sold off its long products facility at Scunthorpe in northern England for just 1 pound to investment firm Greybull Capital LLP. Still, the other mills with annual losses of around a million euro could not be sold.

In this background the recent news on a partnership with the German steel giant ThyssenKrupp in a 50:50 joint venture is welcome news. Tata Steel and ThyssenKrupp have signed a MoU to combine their European steel operations in an equal joint venture to be named - ThyssenKrupp Tata Steel (TKTS). 

The non-cash transaction framework will combine the flat steel business of the two companies in Europe and the steel mill services of the ThyssenKrupp group. 

The deal will create the second largest player in Europe with annual shipments upwards of 21 million tonnes and total revenue and EBITDA of €15 billion (Rs.115,000 crore), and €1.5 billion respectively. The new entity is expected to have a workforce of 48,000 spread over 34 locations.

TKTS is expected to emerge a major flats producer with TSL adding all its flat steel business in Europe and ThyssenKrupp (TK) contributing its Steel Europe division. 

TKTS would be based out of the Netherlands and comprise a 2 tier structure with a management board and supervisory board. Both boards will have equal representation from Tata Steel and ThyssenKrupp.

“We see the agreement between Tata Steel and ThyssenKrupp to combine their European steel operations as mutually rewarding as not only will it aid consolidation in the European steel sector, but could likely pare debt from both partners’ balance sheets,’’ pointed out a report by Edelweiss Securities. 


Author :
Reported On :
Sector :
Shoulder :
RELATED NEWS
ABOUT IE
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
 
PRIVACY POLICY
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
TERMS AND CONDITIONS
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
 
CONTACT US
S-15, Industrial Estate,
Guindy,
Chennai - 600 032.
PHONE: +91 44 22501236
EMAIL: indecom1968@gmail.com