Tata Steel expands presence in South-East Asian market

24 January 2007

Even as it strategises its entry into Europe through a possible buyout of Corus, Tata Steel is increasing its presence in South-East Asia, where it has consolidated its stake in three companies.

Tata Steel''s Singapore arm Natsteel Asia Ptv Ltd has acquired Malaysia-based Southern Steel Berhad`s stake worth Rs83.5 crore in Natsteel Trade International, Natsteel (Xiamen) and Natsteel Vina Ltd.

While Natsteel Trade is the trading arm of Natsteel Asia Pte Ltd, Natsteel (Xiamen) and Natsteel Vina manufacture wire rods and steel reinforcement bars.

The acquisition of 40-per cent stake in Natsteel Trade and 50-per cent stake in Natsteel (Xiamen) would make these two companies wholly owned subsidiaries of Natsteel Asia Pte Ltd, which was acquired by Tata Steel in 2005.

The additional 22.6-per cent stake in Natsteel Vina would make the company Natsteel Asia`s subsidiary with 56.5-per cent equity holding.

Natsteel group has a steel manufacturing capacity of 1.7-million tonne per annum. In Europe, Tata Steel is eyeing Corus, which has a manufacturing capacity of a little over 19-million tonnes.