The steel maker plans to slash capex to ₹8000 crore from ₹12000 crore planned earlier for FY20.
Between Europe and India the aim is to keep Europe operations cash positive and in India there may be phasing out or delaying some projects, Narendran said while relaunching its steel retail store “steeljunction” in a different avatar in a new location.
Now approximately ₹8000 crore of capex would likely be planned for India and around ₹4000 crore for Europe, Narendran said adding the exact figure is still being worked out.
Major part of the capex for India will be spent for expansion of Kalinganagar project by prioritizing some projects like cold rolling mill and pellet plant project and delaying some projects.
However, the Tata Steel management is confident of completing expansion of the Kalinganagar project by FY22.
Closes non-core European facilities
Tata Steel has recently signed a sales and purchase agreement for Cogent Power Inc (CPI), with Japanese steel giant JFE Shoji Trade Corporation.
CPI manufactures cores for electrical distribution transformers and employs nearly 300 people.
Furthermore Tata Steel has decided to retain Surahammars Bruks AB, which makes advanced steels for electric vehicles and employs around 100 people.
However, despite exploring all options, Tata Steel has been unable to find a way forward for Orb Electrical Steels and so proposes to close the site, with the potential loss of up to 380 jobs.
“We have been able to secure the future for almost 400 colleagues in CPI and Surahammars Bruks. However, today’s proposal will be sad news for colleagues at Orb in South Wales. This is necessary, enabling us to focus our resources, including investment, on our core business and markets, helping us build a long-term sustainable future in Europe,” Henrik Adam, CEO of Tata Steel’s European operations, said.
This story is from the September 2019 edition of Steel Insights.
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This story is from the September 2019 edition of Steel Insights.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
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