Tata Steel Making Acquisitions

Tata Steel Ltd. has made a number of acquisitions to build up its steel making operations. The India-based company is growing its metals and steelmaking business.

The company acquired 100 percent of equity stake in Rawmet Industries Private Ltd. This is the second 100 per cent acquisition of Tata Steel Ltd in Orissa. In September 1991, Tata Steel took over the Ferro Alloy Plant in Bamnipal.

Rawmet has a Ferro Alloy Plant near Cuttack, consisting of two semi closed electric arc furnace having a capacity of producing around 50,000 metric tons per year of high carbon ferro chrome.

Tata Steel also announced that, through its wholly-owned subsidiary NatSteel Asia Pte. Ltd., entered into an agreement to acquire controlling equity stake in two rolling mills in Haiphong, Vietnam, and entered into a conditional agreement with Vietnam Industrial Investments Ltd to acquire a 100 percent stake held by VII in Structure Steel Engineering Pte Ltd., a 70 percent stake held by VII in Vinausteel Ltd. The remaining 30 percent share is held by Vietnam Steel Corp.

By virtue of the acquisition of the respective stakes, NSA will effectively have acquired two rolling mills located in Haiphong, North Vietnam: a 250k tons per year bar/wire rod mill operated by SSE Steel Ltd (a wholly-owned subsidiary of SSE; and a 180,000 tons per year of reinforcing bar mill operated by Vinausteel Ltd.

SSE Steel has one of the most modern rolling mills in Vietnam and the Vinausteel brand is one of the best known brands in Vietnam for reinforcement bars. The acquisition of these two mills will allow Tata Steel - NSA Group to complement, strengthen and expand its current presence in Vietnam. The Group presently operates a 100,000 metric tons per year reinforcing bar/wire rod mill in a joint venture with VSC in Thai Nguyen which is located about 70km north of Hanoi.