The company said the merger will provide operational integration and more efficient capacity utilization
The board of Indian corporation Tata Group’s directors has approved the merger of seven steel companies with the parent Tata Steel. DNA reports about it.
These are Tata Steel Long Products, The Tinplate Company of India, Tata Metaliks, TRF, The Indian Steel&Wire Products, Tata Steel Mining Limited and S&T Mining Company.
Each merger plan will now proceed through a clear regulatory approval procedure, which includes approval from stock exchanges and the NCLT (National Corporate Law Tribunal).
This merger will lead to operational integration and better facility utilisation, an increase in services. It is also planned to strengthen the market presence in the segment of certain products, improve the management of working capital and financial flows, etc.
The proposed merger is also a step to simplification of Tata Steel holding structure. Since 2019, the company has reduced 116 associated organizations (72 subsidiaries have ceased to exist, 20 associated companies and joint ventures have been liquidated, 24 companies are currently in the liquidation stage).
As GMK Center reported earlier, in August Tata Steel, has received permission from the Punjab state government to build a new EAF plant in Ludhiana. The implementation of the project involves investments in the amount of 2.6 thousand crore rupees ($325.8 million).
Also, Tata Steel, the largest CO2 emitter in the Netherlands, is investing more than €65 million in the design of hydrogen-based steel production in the city of Eimeiden.