Tata Steel to import high-end products from Europe
Kolkata: The plan mooted in 2007 by Tata Steel to export semi-finished products from India to Europe did not materialise, but five years later the company is set to import high-end products from Europe to the Indian markets.
The sluggish global steel market has encouraged Tata Steel to take the decision to improve capacity of the European operation.
"We will look to import high end products from Europe to Indian markets. Surveys are being carried out and we are looking to finalise plans in another two to three months," Tata Steel managing director HM Nerurkar told reporters here.
The company was aiming to introduce products in sectors such as automobiles (car panels), pipelines, tubes, rail tracks and electrical steels. The company was in touch with consuming industries for such proposed products.
Exchange rate fluctuations and other factors likely to impact such plans are been looked into, he said.
The previous plan of sending products to Europe for value addition was not fructified as such operations were "not economically viable," Nerurkar said at the AGM of the Indian Institute of Metals where he was elected as president.
"We will be substituting one of the lower grade imported products with higher end ones," he said.
Apart from India, Tata would look to cater to North America and African markets.
Nerurkar said in short run there can be a situation of excess supply of steel as capacities are being added with low demand. But, in the long run the company does not foresee supply glut situation.