Is Tata eyeing Colombian steelmaker Sidenal?

KOLKATA: Tata Steel, the sixth largest steelmaker in the world, is believed to be eyeing Siderurgica Nacional (Sidenal), a steel mill based in Colombia. Severstal, the second largest steel company in Russia, which joined the race for Arcelor last year, is also in the fray, in which Brazilian steel companies have also apparently joined in.

The deal, if successful, would give Tata Steel a foothold into a vibrant and fast growing steel market in Latin America. When contacted a Tata Steel spokesperson told ET: “We are not aware of any such development. At this point, we have nothing to say on the issue. However, we are always open to opportunities.”

On Friday, a report in Steel Business Briefing, a London-based organisation that tracks developments across the steel industry, said Russian mill Severstal and Indian steel company, Tata Steel, could be interested in making a bid to acquire Sidenal.

The company’s Boyaca steelworks has a steel making capacity of 200,000 tonnes per annum. The company also has a plant for steel cuts, with an installed capacity of 50,000 tonnes per year.

The report said Brazil-based steel group Gerdau, which controls Colombia’s steel companies Diaco and Sidelpa, could be interested in acquiring two other local steelmakers — Comsisa and Aceros Boyac. Gerdau is one of the largest producers of long steel in the region with a number of mills across the region.