Tata Steel expects better Q4 sales; Corus may save £600 mn

Mon 16 Feb 2009

KOLKATA: Tata Steel said on Friday it expects higher sales volume in the domestic market in the quarter ending March even as the world's sixth largest steelmaker targets to save about £600 million this year from production cuts at its UK subsidiary Corus .

“Corus has cut production by 35-40 per cent just like any other European steel company. But it has initiated several short-term measures in terms of cost reduction, product mix, conserving cash and working capital reduction by which it would probably sav e £600 million between now and end of the year,” Tata Steel MD Mr B Muthuraman said here on Friday.

Speaking about the domestic market, Mr Muthuraman said that in the light of what was happening around the world, the demand situation was not that bad. “We would sell more in volume terms in this quarter (Q4) compared to Q3 of this year and last quarter of the previous year,” he told reporters on the sidelines of the inaugural session of the Indian Foundry Congress here.

“January was better by 26 per cent than December, December was better than November. We hope to sell 10-15 per cent higher in February this year compared to January,” Mr Muthuraman said. - PTI

The Hindu Business Line

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