Tata Steel to Pursue Recycling Route to Boost Growth

SEATTLE (Scrap Monster): Tata Steel announced its decision to pursue recycling route to boost growth in Indian market. It will focus on EAFs that consume scrap items to produce steel products. To this effect the company has set up organized recycled facility in Rohtak, Haryana. Also, it plans to set up mini steel plant in the north, south and west, where there is increased availability of scrap materials, in line with the company’s plans to accelerate scrap-based growth in steelmaking.

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TV Narendran, CEO and MD, Tata Steel noted that the industry has invested hugely in building capacity over the past several years. The company has grown in India, despite several challenges over the past decade. He added that the steel industry is currently going through a structural change and that the prices of the commodity are likely to remain highly volatile, than it has been over the past decade.

Although, the new infrastructure boom in the U.S. may drive global steel industry sentiments, it is not an easy market to export into, primarily on account of protectionist measures in place.

Tata Steel expects its European business to be significantly EBITDA positive this year. It anticipates significant flow through into the bottom line in Europe from this quarter onwards.