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    Review of European Portfolio of Tata Steel [Company Update]

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    10 views3 pages

    Review of European Portfolio of Tata Steel (Company Update)

    Uploaded by

    Shyam Sunder

    Copyright:

    © All Rights Reserved
    Download as PDF or read online from Scribd
    Flag for inappropriate content
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    TATA March 30, 2016 ‘The Secretary, Listing Deparment “The Manager, Listing Department BSE Limited National Stock Exchange of ina Liited PhirozeJesjeebhoy Towers, Exchange Paza, Sth Foor, Plt No. Ct Dalal Steet Block, Bandre-Kurla Complex, Bandra (E), Mumbai - 400 001 Mumbai - 400 051 Maharastra nda Manarastir, Inia ‘Seip Code 500470 ‘Symbol TATASTEEL Dear SirsiMadam, Sub: Pross Release Pease find enclosed the press release titled "Review of European Portfolio of Tata Steel ‘This disclosure is made in compliance with Regulation 20() of the Securties and Exchange Board of Incia (ising Obligations and Disclosure Requirements) Regulations, 2015 ‘hiss for your information and records Thanking you Yours faith, ‘Tata Stoel Limited Povcareeenn parathenaet Company Seo Encl As above ‘TATA STEEL LIMITED sro oc ony in St ee 0 ne TATA STEEL TATA rice ose ET Review of European Portfolio of Tata Stee! ‘Mumbai, March 29, 2016: The Tata Stee! Board today reviewed the recent performance of the European business of the Company, more specifialy, of Tata Steel UK. It noted with deep concem the deteriorating financial performance ofthe UK subsidiary inthe last twelve months, Whie the global stel demand, especialy in developed markets ike Europe has remained muted folowing the nancial esis 2008, tracing conditions in the UK and Europe have rapidly deterorated more recently, due to structural factors including global ‘oversupply of steel, significant increase in third country exporis info Europe, high manufacturing costs, ‘continued weakness in domestic market demand in steel and a volatie curency. These factors ae likely to Continue into the future and have significantly impacted the long term compettive position ofthe UK operations in spite of several inbatives undertaken by the management and the workers of the business in recent years Even under these adverse market conditions, the Tata Steel Group has extended substantial fhancal support to the UK business and suffered asset impairment of more than £2 bilion in the last 5 years, ‘The Tata Stee! Boar also reviewed the proposed restucixing and transformation plan for Stip Products UK, Prepared by the European subsidiary in consultation with an independent and. interationaly, reputed ‘consultancy frm. Based onthe review conducted, the Tata Steel Board came to a unanimous conclusion that the Plan is unaffordable, requires material funding suppor in the next two years addition to signficant captal ‘commitments over the iong term, the assumptions behind are inherently Very risky, and te likelihood of

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