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Tata Steel sees better profitability for steel industry
Steel Insights Bureau
The steel industry is entering a phase which will see better spreads enabled by robust demand and geo-political factors, Tata Steel Chairman N. Chandrasekaran told investors in the company’s annual report.
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And Tata Steel is poised to seize the opportunity.
“The strategic moves your company has made over the last few years has given it the structural and financial strength to capture the opportunities that arise going forward, while ensuring its resilience in the face of uncertainty and a dynamic operating environment,” he said.
Tata Steel will strive to be a leader in the transition to a greener economy – aiming to create a virtuous cycle of growth and returns for the shareholders, he told investors.
“Beyond the near-term uncertainty, it is clear that the post-pandemic world will be unavoidably different. Recent years have been marked, for example, by elevated geopolitical volatility, accelerated technology disruption and greater action to mitigate climate risks, among other important global trends. The pandemic has accelerated many of these shifts, while underscoring the pace at which we need to act to remain ahead of the curve,” Chandrasekaran said.
Focus on capex
And pursuing an enterprise deleveraging plan, Tata Steel Group will continue with critical capital expenditure focused on India, including the ongoing Pellet plant and Cold Roll Mill commissioning at Kalinganagar.
“Once completed, these investments will help expand margins by boosting value-added products into the existing mix,” the Chairman said in his statement to shareholders.
Expansion of Kalinganagar project
Commissioned in 2016, the Kalinganagar plant attained production levels at its rated capacity of 3 million tons per annum (mtpa) in less than two years.
