Tata steel plans for more acquisitions in Southeast Asia
TATA Steel, India’s largest steelmaker, has become the sixth largest global steel maker after taking the Anglo-Dutch steel group Corus in a US$13.7 billion deal. Earlier, Tata steel was at 56th rank among the largest steel groups before the deal that was completed on April 2. Now, the company has said that the global steel demand is going up by 5.9 per cent to 1.179 billion tonnes.
Eyeing on the growing global demand, the Tata Steel has planned to expand company’s base in Southeast Asia by buying steel firms. According to the MD B Muthuraman, Tata has planned to purchase mines and factories in a practice to spread out its range of products. He said that the Tata group is looking for acquisitions in the steel wires business in Southeast Asian countries such as Indonesia.
The Tata steel wants to move into high grade, higher-value add wires used in tyre cords and oil tempered wires through acquisitions in this region by consolidated the fragmented industry. Earlier, Tata steel had taken a minimum 65 per cent stake in a Vietnamese steel plant joint venture. The complex will use raw materials from the Thach Khe iron mine, in which Tata will hold a 30 per cent stake.
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