Tata Steel Europe on a long journey to recovery

Even in May, the future of Tata Steel in Europe was in question after the depreciation of the assets of the largest Indian company. At the same time, the demand for steel in Europe fell by 30 percent compared to the peak of 2007, which leads to a decrease in the use of production capacity and pressure on profitability.

Just six months later, the Tata Steel European business surprised everyone. Operating profit in the second quarter of this financial year was higher than expected. Revenue increased by seven percent to the highest results over five years, and up to 50 percent of the 2009 minimums. Already the second quarter in a row has an increase in Tata Steel Europe income, which account for 60 percent of consolidated income. Tata Steel also has plants in Thailand and Singapore, which account for a little more than a tenth of its consolidated revenue.

The growth of quarterly volumes is a big step forward. This raised the price of Tata Steel shares more than twice from its minimums in August this year. After the acquisition, Tata Steel Europe reported a record operating room in the second quarter of 2007, then it fell almost doubled in the third quarter of 2008.

Since September 2013, Tata Steel revenues from production in Europe increased due to stabilization of the new stove on the port-Tolbot in the UK. Effort to increase efficiency also raised operational profit at each ton. The company focuses on customers using high -added products, compensating for a decrease in the volume of traditional products.