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