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