The decision of Tata Steel Europe to sell its long product assets in Europe will allow the company to become more competitive in the flat product segment.
Over the past three years, Tata Steel Europe passed through several restructuring programmes, which enabled it to stay afloat amid weak demand for steel products in Europe. This year the company has upgraded and optimized logistics at its service centres in Western Europe. Tata Steel Europe also follows a pan-European trend for production of high-quality light steels for the automotive industry, adding about 30 new products just over the past year, mostly for automobile production.
At the same time, losses of long product assets were a matter of permanent concern for the company. The decision to sell the long product business will allow Tata Steel Europe to concentrate on development of the promising flat product segment. “We have therefore decided to concentrate our resources mainly on our strip products activities, where we have greater cross-European production and technological synergies,” Karl Koehler, Chief Executive of Tata Steel’s European operations, said.
Source: Metal Expert