Tata Steel: Weak results before alliance with Thyssenkrupp
by David Fleschen
Tata Steel in Europe is facing losses jut before the planned merger with the steel division of Thyssenkrupp. The production of European plants receded in the past quarter according to preliminary figures to 2.33 million tonnes compared to 2.67 million tonnes in the same period last year, as the company explained on Tuesday according to a report of the German newspaper "Handeslblatt".
Sales had shrunk to 2.3 million from 2.44 million tons. As a reason Tata called the failure of a blast furnace in the British Port Talbot plant for maintenance. In addition, there were further operational burdens both there and at the Dutch plant in IJmuiden. The decline in production and the adjustments to the product mix would affect the business figures.
Thyssenkrupp will present its figures for the first quarter of the financial year 2018/19 in mid-February.
Thyssenkrupp and Tata want to forge the second largest European steel group after ArcelorMittal. The group would employ about 48,000 people and could produce about 21 million tons of the material annually and achieve a turnover of 17 billion euros. Businesses still need clearance from the competition authorities.
Source: Handelsblatt, photo: fotoalia