Tata Steel

Most of the funds are earmarked for projects in India

Tata Steel, an Indian steelmaker with assets in Europe, plans capital expenditures of approximately $2.04 billion in fiscal year 2024/2025 (started in April this year). This was announced by the company’s CEO T. V. Narendran, according to SteelOrbis.

At the same time, 75% of the announced amount falls on projects in India. The funds will mainly be used to expand the steel plant in Kalinganagar (Odisha), as well as to re-lining some blast furnaces, expanding the raw materials division and covering production support costs. According to the CEO of Tata Steel, these will be capital investments that increase added value.

Part of the investment will be directed to a new electric arc furnace plant in Ludhiana, Punjab, and the rest to facilities in Europe.

“Steel consumption in India is growing by about 10%, and we expect this to continue for several more years,” he added.

According to the Financial Express, Tata Steel expects its operations in the Netherlands to be positive in terms of EBIDTA and cash in the current fiscal year. In the UK, EBIDTA is expected to be negative for the first two quarters.

Tata Steel India, the company’s main division, increased steel production by 4% year-on-year to a record 20.8 million tons in FY2023/2024 (ended March 2024).

As GMK Center previously reported, Tata Steel UK announced that it will continue to implement its plan to shut down blast furnaces at its Port Talbot steel mill and switch to electric arc furnace (EAF) production. BF No. 5 will be shut down by the end of June this year and BF No. 4 by the end of September.