Indian steel producer Tata Steel Limited is not keen on bidding for NMDC Steel Limited’s 3 million mt greenfield steel mill project which is nearing completion and is to be put up for privatization by the government, a Tata Steel official said in a statement after announcement of the company’s first quarter financial results on Tuesday, July 25.
“We are not keen on NMDC Steel Limited because again, between our steel mills of Kalinganagar and Bhushan, we can add another 15 million mt per year at least in both these facilities. Kalinganagar alone will add another 12-13 million mt over the next few years and the Bhushan plant can add another 5 million. So, about 17-18 million mt of flat products can be added in our existing footprint. So, we don’t need to start another site just yet,” Tata Steel managing director and CEO T. V. Narendran said.
“I think organic growth is what allows us to pace ourselves better. And brownfield expansion tends to get cheaper simply because you're better utilizing infrastructure that you've already built,” he said.
On Tata Steel’s UK operations, he said, “The company has sought a financial package from the UK government to replace two blast furnaces, which are nearing the end of life in 12-24 months.
“I think the conversations have been progressing. In between, it slowed down a bit. But again, it's picked up pace. We hope to try and find a solution, which works for all of us, for them, for us, and for our employees there. So, let's give it some more time. But I think we feel that we are coming closer to a solution,” he said.
