PRESS TRUST OF INDIA
London, 14 July
Indian steel giant Tata Steel’s European arm has reported a record loss of £1.2 billion for the year.
Tata Steel Europe, Britain’s largest steel producer, reported the losses for the year until 31 March 2013 as part of its latest results filed at Companies House in the UK. They mark a massive rise from £846 million the previous year.
As per the company’s filing, revenues fell 14 per cent to £8.7 billion due to a “deterioration to market conditions in the second half”.
The company, previously Corus before being bought over by the Indian conglomerate back in 2007, has been battered by falling steel prices, a slump in demand and competition from cheap imports.
Tata group, however, has rejected claims that it may have to sell the European steel operation to pay down its crippling debts. But it has ordered a review of the business, which could include asset sales.
The accounts say: “In order to maintain its ability to successfully compete in the long term, the group is, therefore, undertaking a number of initiatives, including a strategic review of its asset portfolio.”
The Sunday Times quoted sources as saying that Tata Steel plans to close down its R&D centres on Teesside and in Rotherham, South Yorkshire.