Tata Steel not to acquire plants in near future: Tata

Jamshedpur, Mar 3: Tata Steel Chairman Ratan Tata today reiteratedthat the acquistion of Anglo-Dutch steel company Corus was a right steptowards becoming a global steel giant and both the companies willformally merge in April next.

Speaking to mediapersons, Mr Tata, who came here on the occasionof Founder's Day celebrations of Tata Steel, said though the bid forCorus appeared to be a little high priced, the acquisition of thecompany was done keeping an eye towards future.

''The 19 MT company is a big brand name in Europe and we sharesame value systems. The boards and the managements of both thecompanies have unanimously supported the merger,'' Mr Tata clarifed.

He said the decison on the equity structure of the comapany wouldbe finalised in an Extraordinary General Body Meeting (EGM), slated tobe held on March 7.

Talking about the company's future plans, Mr Tata said,''Acquistion is not for increasing the size of the company but forstrategic need. At present we are concentrating on completion of thegreen field projects and expansion of our Jamshedpur plant.'' Mr Tatasaid his company was focussing on completion of its green fieldprojects in India and overseas instead of acquiring more plants in thenear future.

The progress of the grienfield projects in Chhattisgarh and Orissawere satisfactory while they were awaiting for the governmentclearances for the Jharkhand project.

About the Bangladesh project, Mr Tata said Tata Steel would set upsteel,fertilizer and power plants in that country but waiting for thegovernment's approval after the elections.

Mr Tata said, ''Values and human chemistry are very important to us. Wewill maintain these values despite merger with other overseascompanies.'' Tata Steel Managing Director B Muthuraman, also present inthe ocassion, said the synergy with Corus would add value to Tata Steelas the European company was skiled in construction solutions,automotive sector and Tinplate production.

He said the financial structure of both the comapanies would be finalised in a few weeks.

Mr Muthuraman said selected number of Corus employees would beincluded in the Tata Steel's Board in the light of true spirit ofpartnership.

To a question, he said the company was planning to buy coal mines in Australia.

Mr Muthuraman said the company was against exporting of iron oreand lauded the government's decision to slap export duty on iron ore.

About the company's target to become 100 MT company by 2015, MrMuthuraman said the target should be seen as motivation and wim tobecome a steel giant in the world.

UNI
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