Tata Steel may look at further asset reduction in Europe: Cyrus Mistry

MUMBAI: Tata Steel may be forced to further reduce assets in its Europe business, hurt by continued challenges due to adverse currency volatility and surging Chinese imports, said Tata Sons Chairman Cyrus Mistry in the steelmaker's latest annual report.

Tata Steel Europe has already put its long products business on the block and is narrowing down its focus on more profitable and promising business divisions in Europe like its strip business while moving away from continuously loss-making units.

"Globally, declining steel demand and increased production in China are expected to result in continued high export levels to Europe," said Mistry. "The UK business of Tata Steel Europe is the most impacted by the surge of Chinese imports as its domestic demand continues to be weak."

Tata Steel recently undertook another round of restructuring its speciality and bar business in Europe, putting 720 jobs at risk. The company has had many run ins recently with the unions, who have opposed job cuts, reduction in pension and potential sale of long products business to Klesch Group.

Tata Steel said steel margins can be expected to remain under pressure in 2015 in Europe. The company said it will look at strategic acquisitions to improve the products and services Tata Steel offers Nordic customers, where it has a strong presence.

Tata Steel has been struggling with Europe ever since it bought out Corus nine years back. The operations have undergone numerous restructuring measures, including closures and job cuts. However, after spending 6.2 billion pounds on the acquisition and 1.2 billion pounds more on restructuring, the European operations are still running at a loss.