Jamshedpur: Tata Steel would channelise 50% of its iron ore and coking coal, key inputs for making steel-- to its European subsidiary Corus by 2015 in a move aimed at securing raw material for the Anglo-Dutch steel maker and cut operational cost.
The world’s sixth largest steel firm is also looking to save one billion pounds at its European operations in 2009-10 by pursuing its cost-cutting programmes--“Weathering the Storm” and “Fit for Future.”
“The fundamental thing is our strategy to get raw material license to ensure that over a period of next five-six years, Corus or Tata Steel Europe as it is now called, gets 50% of the raw material,” Tata Steel managing director B Muthuraman told reporters on Thursday.
The raw material for Corus would come from company’s mines in Mozambique, Canada and South Africa besides other places, he said, adding that the initiative would take a few years to complete. The company would continue to scout for more coal and iron ore assets abroad.
“So that is the journey which we have started but this journey will take some years. These are the things which I expect to start flowing in from 2011 onwards and slowly it will pick up and gradually it will grow,” he added.