Forging Ahead: Tata Steel's Euro Arm to Reinforce India’s Growth Grid

Tata Steel is poised for a major shift as its European operations begin to complement robust Indian growth, marking a new chapter of global competitiveness for the steel giant. With India’s Kalinganagar facility expanding to 8 million tonnes per annum (mtpa) and the Neelanchal plant set for a long-term upgrade, the company is channeling 75% of its planned ₹15,000-crore consolidated capex into Indian projects for FY26.

 

Key Highlights

 

•⁠  ⁠Indian Expansion: The Kalinganagar plant’s capacity ramp-up is ongoing, with sales for Tata Steel India projected at 21 mtpa in FY25 and further growth anticipated. The Neelanchal plant is slated to expand from 1 to 5 mtpa, reinforcing Tata Steel’s leadership in cost-effective, high-quality steel production.

 

•⁠  ⁠European Transformation: In the UK, Tata Steel is replacing coal-based blast furnaces with a new 3.2 million tonne electric arc furnace (EAF) at Port Talbot, backed by a £1.25 billion investment. This will reduce CO₂ emissions by 5 million tonnes annually and secure 5,000 jobs.

 

•⁠  ⁠Netherlands Growth: The Dutch unit reported a 17% year-on-year increase in steel sales for FY25 and is planning a green steel transition, aiming for a 40% reduction in CO₂ emissions by 2030.

 

•⁠  ⁠Profitability Focus: A ₹11,500-crore cost take-out program is underway, aiming for EBITDA break-even in Europe by FY26 and margin growth in India as steel prices stabilize.

 

Outlook

 

As Tata Steel’s European operations transition to sustainability and profitability, they are set to support and amplify the company’s strong Indian growth, ensuring long-term resilience and leadership in the global steel industry.

 

Source: The Hindu BusinessLine, SteelOrbis, Tata Steel UK