Tata places no threat to Bangladeshi producers

Tata Group announced that its 2.4 MT steel plant, to be built at the cost of $1.3 billion to produce HRC, will not pose a threat to the local producers in Bangladesh. The announcement was made after Bangladesh Steel Mills Owners Association and Bangladesh Re-rolling Mills Association, two major Bangladesh steel industry associations, representing 100 steel and 300 re-rolling mills, have threaten to launch a countywide demonstration from May 31, 2006, if the company is to proceed with the project. Tata group clarified that Bangladesh' imports of HRC annually accounted for $600 million and that the company will enter to this segment and not in the segment where the local companies are doing well. The company also reported that the new plant will change the import-export situation in the steel market and turn Bangladesh into an exporter of HRC.