Tata Steel to revive production capacity at Corus

Last Updated: Wednesday, November 4, 2009 - 23:43

New Delhi: Tata Steel on Wednesday said its European
subsidiary Corus will be able to meet full capacity
utilisation by the end of the current fiscal, riding on
revival in global demand.

Corus, which had cut production capacity of its mills by
as much as 50 per cent amid the demand slump last year, has
currently revived the utilisation of its mills to 80 per cent.

"In October, the capacity utilisation had touched 80 per
cent. It should be 85 per cent by the end of November and 100
per cent by the end of this financial year," Tata Steel Vice-
Chairman B Muthuraman said on the sidelines of CII Steel
Summit here.

Corus produces about 20 million tonnes of steel per
annum.

"Demand is coming back in the west," he added.

Globally, steel producers have started reviving their
production capacities with the rise in demand for their
products. ArcelorMittal had revived the capacity utilisation
of its mills to about 61 per cent in the past three months and
aims to take it up to 70 per cent in the ongoing quarter.

However, the world`s largest steel maker had warned
against the over production at Chinese still mills and the
resultant influx of cheap steel goods, especially in the South
Asian market.

But, Muthuraman said the production by Chinese steel
mills is only meant to feed its domestic market and there is
no threat of dumping of cheap steel items.

"Chinese steel production will meet its internal demand,
which is high," he added.

Bureau Report




comments powered by Disqus