Published On: Sun, Jul 1st, 2018

Tata Steel, thyssenkrupp sign deal to form European steel joint venture

Tagged with: | | | | |

Indian steel company Tata Steel and German multinational conglomerate have signed agreements to merge their European steel businesses – Tata Steel Europe and thyssenkrupp Steel Europe, respectively into a new company to be named as thyssenkrupp Tata Steel.

The new steel business joint venture to be headquartered in the Amsterdam region in the Netherlands will be owned 50:50 by Tata Steel and thyssenkrupp and will have a workforce of around 48,000 people spread across multiple locations.

In September 2017, the parties signed a Memorandum of Understanding (MoU) towards establishing the joint venture, which is expected to have €15 billion in annual revenue.

thyssenkrupp Tata Steel will aim to supply around 21 million tonnes of flat steel products to its customers annually. The formation of this steel joint venture will be subjected to regulatory clearances in various jurisdictions, including the European Union.

Tata Steel's Port Talbot Steelworks Plant

Tata Steel’s Port Talbot Steelworks Plant. Photo courtesy of Tata Steel.

Commenting on the creation of thyssenkrupp Tata Steel joint venture, Natarajan Chandrasekaran -Chairman of Tata Steel, said: “The joint venture will create a strong pan European steel company that is structurally robust and competitive. This is a significant milestone for Tata Steel and we remain fully committed to the long-term interest of the joint venture company. We are confident that this company will create value for all stakeholders.”

Until the closing of the joint venture process, Tata Steel and thyssenkrupp Steel Europe will operate as separate entities and as competitors in Europe.

Heinrich Hiesinger – CEO of thyssenkrupp, commenting on the thyssenkrupp Tata Steel joint venture, said: “We will create a highly competitive European steel player – based on a strong industrial logic and strategic rationale. We will secure jobs and contribute to maintaining value chains in European core industries.”

Related posts