Corporate Grapevine     

Published: May 31, 2024
Updated: May 31, 2024

Tata Steel in revamp mode: focus on Europe operations

After the acquisition of Neelachal Ispat and Bhushan Steel, and the gradual turnaround of its loss-making European unit, Tata Steel is looking forward to expanding capacity at its Odisha plant and making a substantial investment in its UK plant. Tata Steel’s FY24 results were less poor than analysts had feared, even though its revenues and EBITDA fell 6% and 27% YoY respectively as continued losses from Europe and higher operating expenses outweighed strong India revenues and lower coking coal input costs.

Tata Steel’s UK unit is all set to shut down and the company is changing its energy source from coal to electricity. For this, the Tatas are getting a UK government cash subsidy of $640 million. The rest of the investment of $1.6 billion will be made by Tata Steel and hopefully will result in Tata Steel’s Europe operations making money.