Tata Steel restructures own business
Revolutionary business restructuring expects «Tata Steel» Indian iron and steel corporation. The reason for the unexpected phenomenon was the crisis in the UK. As a result of the sale will be held «Tata Steel Long Products Europe». The deadline for implementation — March 2016. Main Products Division Tata Steel — fittings, plates, wire rods, steel semi-finished products. Sector production of application — construction, machine-building, shipbuilding, energy. The CEO believes that Tata Steel Europe have long future products there. The question of the restructuring will be decided before the end of this fiscal year.
We mentioned earlier that the Indian company is in talks with Klesch Group, Switzerland. The company owner has the dubious reputation, shot to fame «vulture capitalist». For the acquisition of companies, he gives a pittance. The purpose of the purchases in most cases becomes a receipt of scrap metal and other waste. In July «Tata Steel» gave confirmation of the continuation of negotiations for the sale of metallurgical enterprises in the UK. The problems in the steel sector, the UK began to occur as early as 2014. At the end of the year will take effect the new tariffs for electricity and new taxes. As a result, existing problems worsened in the autumn of 2015 against the backdrop of the fall of the cost of steel 1/3. Analysts Britain gave negative factors collectively called the «perfect storm.» Only in October the UK metals sector were forced to cut 6,000 jobs. Chapter «Tata Steel Europe» noted that the company responds to the deteriorating economic and market conditions. The result was a restructuring of the UK business. Also, the application of the forced closure of some factories have been made.
Representatives of Moody's adjusted their own predictions about the credit rating of the company. Given the problems in the UK, the Indian corporation has changed the status of a «stable» to «negative.» Shares «Tata Steel Ltd» fall in the value of almost 5%. The impetus served as the company's quarterly report. On the Bombay Stock Exchange fell by 4.58%, reaching the level of 215.25 rupees. New York Stock Exchange showed a decrease in the level of 4.56% to reach 215.10 rupees. In response, the Indian company reported an increase in quarterly net profit by 22%. However, the situation could not be improved. Sales decreased by 18%. As for profits, its growth is ensured for sale «Tata Motors» shares.