Tata Steel Europe reports record losses

The European unit of the Tata Steel steel transnational corporation announced a record loss of £ 200 million for the past financial year, which ended on March 31, 2013.

The consolidated revenue of the company fell by 14 percent - up to 8 billion 700 million pounds. According to the company representative, this is due to a sharp deterioration in market conditions in the second half of the year. The Tata Steel Europe was under the blow of the falling prices for a metal supply accompanied by a reduction in demand and increased competition from inexpensive imports.

According to The Sunday Times, the Tata Steel Europe metallurgical company has pure borrowings of 3 billion 400 million pounds, in addition, the company was forced to give percent on loans last year 352 million pounds.

Most Tata Steel Europe plants are located on the EU lands, where there is a large rental cost of space and there is no demand for steel. Nevertheless, the Tata Steel maternal company refutes the rumors that she will most likely have to get rid of assets in Europe to pay off debts.

Meanwhile, Tata Steel Europe has already begun reorganization and as reported, closes its research centers in Britain. In addition, the report published recently states that "in order to evaluate their competitiveness in the near future, the Tata Steel group will conduct a strategic revision of their asset portfolio."