Mumbai / Singapore: Tata Steel Ltd plans to develop “very aggressive” in India, the adoption of Prime Minister Narendra Modi’s promise of infrastructure spending spending, after approaching a possible joint venture in Europe will help curb losses There.
“We are going to grow very significantly or more aggressively towards India,” CEO Koushik Chatterjee said in an interview in Mumbai. Tata Steel plans to be a key element of the government’s view of steel capacity from triple to 300 million metric tons in 2030, he said.
The oldest steel mill in India will have more bandwidth to focus on its home market after resolving pension liabilities in the UK that were considered the main obstacle to a European joint venture with ThyssenKrupp AG. The company will be expanding its existing facilities or acquiring the steelmaker responsible for the debts can be discharged by Indian lenders willing to repair the high-risk loans, Chatterjee said.
The company has sought environmental permits to expand the capacity of its Jamshedpur plant to 11 million tonnes and its Kalinganagar plant to 6 million tonnes. However, the company would be prudent to grow faster than the market, Chatterjee said.
“We need to be balanced on the financial risk of that growth,” he said. “We do not want to become big when the market is still small.”
Tata Steel shares rose Wednesday more than six months in Mumbai after the company and British Steel pension plan union agreed on the key terms of a regulated distribution agreement. If the agreement is approved, the company will pay a settlement of £ 550 million ($ 713 million) for the pension scheme and launch a new closed pension scheme, he said.
The pension pact will make people feel more comfortable when they see that the risks on the other hand are much lower, Chatterjee said. “We are in deep talks internally and we are also talking to counterparts like Thyssen to see which is the best option.”
The steel plant in India has been in talks with ThyssenKrupp and others for a joint venture in Europe since last year and ThyssenKrupp CEO Heinrich Hiesinger identified pension obligations as a major obstacle to an agreement. The company’s potential also faces opposition from Germany’s largest union and politicians who fear job cuts.
An agreement would involve combining Tata plants in the Netherlands and the United Kingdom with ThyssenKrupp’s German plants to create the region’s number. 2 producer and a rival industry leader, ArcelorMittal. Port Talbot operations in Wales will also be part of the joint venture, Chatterjee said. He declined to comment on a timetable for a possible confrontation.
“The actors who have an interest always have anxiety in the absence of a total and definitive position,” Chatterjee said. “We have to do what is in the best interest of the company. We also make sure that we take all the stakeholders as we have done in the past