Narendran in Calcutta on Wednesday. Picture by Kishor Roy Chowdhury
Calcutta, July 30: Tata Steel is focused on consolidating its operations in Southeast Asia amid stiff competition from cheap Chinese exports.
“We want to consolidate where we are,” T. V. Narendran, managing director of Tata Steel India and Southeast Asia, said on the sidelines of a seminar here today.
Narendran said the company’s Singapore subsidiary NatSteel was facing competition from Chinese imports.
“NatSteel is going through some challenges because China is exporting a lot of steel to Southeast Asia,” he said.
According to Narendran, cheap imports affect business in markets such as Singapore where there is little protection from the government unlike countries such as Thailand, where the steel major has a subsidiary.
The ministry of commerce in Thailand had imposed an anti-dumping duty on low-priced carbon wire rods from China in May.
Narendran said the Thailand operations were doing well.
Tata Steel’s Southeast Asian operations registered a 28 per cent growth in deliveries and a 23 per cent growth in turnover in 2013-14.
Narendran said the company was on track to commission the first phase of the steel plant at Kalinganagar, Odisha.
“We are continuing with the construction activity. We stand by our forecast (for commission) for the fourth quarter this financial year,” he said.
The company plans to set up a six-million-tonne plant in two phases in Odisha.
Located at Kalinganagar Industrial Complex, the plant involves an investment of Rs 25,164 crore and will primarily cater to the automobile sector.
Narendran also said he remained optimistic of demand, which is linked to the growth rate.