- Pages: 3
- Word count: 545
- Category: Company
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Tata Iron and Steel Company was established by Dorabji Tata on August 25, 1907, as part of his father Jamsetji’sTata Group. By 1939 it operated the largest steel plant in the British Empire. The company launched a major modernization and expansion program in 1951. Later, the program was upgraded to 2 MTPA project. In 1990, it started expansion plan and established its subsidiary Tata Inc. in New York. The company changed its name from TISCO to Tata Steel in 2005. In August 2004, Tata Steel agreed to acquire the steelmaking operations of the Singapore-based NatSteel for S$486.4 million in cash. The acquisition was completed in February 2005. In 2005, Tata Steel acquired a 40% stake in the Thailand-based steelmaker Millennium Steel for $130 million from Siam Cement.
On 20 October 2006, Tata Steel signed a deal with Anglo-Dutch company, Corus. On 19 November 2006, the Brazilian steel company Companhia Siderúrgica Nacional (CSN) launched a counter offer for Corus at 475 pence per share, valuing it at £4.5 billion. On 11 December 2006, Tata preemptively upped its offer to 500 pence per share, which was within hours trumped by CSN’s offer of 515 pence per share, valuing the deal at £4.9 billion. The Corus board promptly recommended both the revised offers to its shareholders. On 31 January 2007 Tata Steel won their bid for Corus after offering 608 pence per share, valuing Corus at £6.7 billion. In 2007 Tata Steel through its wholly owned Singapore subsidiary, NatSteel Asia Pte Ltd acquired controlling stake in two rolling mills: SSE Steel Ltd, Vinausteel Ltd located in Vietnam.
Tata Steel is headquartered in Mumbai, Maharashtra, India and has its marketing headquarters at the Tata Centre inKolkata, West Bengal. It has a presence in around 50 countries with manufacturing operations in 26 countries including: India, Malaysia, Vietnam, Thailand, Dubai, Daggaron, Ivory Coast, Mozambique, South Africa, Australia, United Kingdom, The Netherlands, France and Canada. Tata Steel primarily serves customers in the automotive, construction, consumer goods, engineering, packaging, lifting and excavating, energy and power, aerospace, shipbuilding, rail and defence and security sectors. Tata Steel has set a target of achieving an annual production capacity of 100 million tons by 2015; it is planning for capacity expansion to be balanced roughly 50:50 between greenfield developments and acquisitions.
Overseas acquisitions have already added an additional 21.4 million tonnes of capacity, including Corus (18.2 million tonnes), NatSteel (2 million tonnes) and Millennium Steel (1.2 million tonnes). Tata plans to add another 29 million tonnes of capacity through acquisitions. Major greenfield steel plant expansion projects planned by Tata Steel include: •a 6 million tonne per annum capacity plant in Kalinganagar, Odisha, India; •an expansion of the capacity of its plant in Jharkhand, India from 6.8 to 10 million tonnes per annum; •a 5 million tonne per annum capacity plant in Chhattisgarh, India (Tata Steel signed a memorandum of understanding with the Chhattisgarh government in 2005; the plant is facing strong protest from tribal people); •a 3 million tonne per annum capacity plant in Iran;
•a 2.4 million tonne per annum capacity plant in Bangladesh; •a 10.5 million tonne per annum capacity plant in Vietnam (feasibility studies are underway); and •a 6 million tonne per annum capacity plant in Haveri, Karnataka.