Tata Steel Europe (formerly Corus),needs investment and it can be planned only after economic situation in Europe improves,group chief Ratan Tata said here today.
“It (Tata Steel Europe) was performing in negative due to various reasons,including the prevailing economic conditions there and high cost of raw materials.
“Our European operations need investment. Let the economic condition improve there,which I hope would take place fast,and we will plan it out only after that,” he said.
Tata Steel,the world’s seventh largest steel maker,had reported a consolidated net loss of Rs 602.67 crore for the October-December quarter,mainly due to Rs 781 crore (USD 147 million) loss in core earnings from the European operations.
Slowdown in demand from the continent — the largest market for the firm– contributed significantly to the loss. A jump in raw material costs by 20.59 per cent was another reason.
Tatas acquired Anglo-Dutch steel major Corus in 2007 for over USD 12 billion. A year later,group company Tata Motors brought out iconic British luxury car brand Jaguar Land Rover for USD 2.3 billion.
“We (Tata group) have spent millions to earn a brand name over the years and finally succeeded,” Tata said.
Tata,alongwith his successor-designate Cyrus Mistry and Tata Steel Managing Director H M Nerurkar was taking part in a question-answer session organized by Singhbhum Chamber of Commerce and Industry.