Tata Steel has adjusted the status of its subsidiaries in Thailand and Singapore from “held for sale” to “continuing operations” in its March-quarter earnings statement. This indicates the Indian steelmaker will not divest the units and is a show of confidence in the Southeast Asian steel market.
This move is due to the improvement in business performance in Southeast Asia since early 2019, Kallanish notes. Operating profit at Tata’s Southeast Asia business increased by 105% on-quarter to INR 2.95 billion ($40.27 million) in the fourth quarter of fiscal 2021, which ended March 2021.
Tata Thailand (TSTH) said last week it will focus on local market sales because Thailand’s national infrastructure investment and the Thailand-China high-speed rail project will stimulate domestic steel demand. TSTH chief executive Rajiv Mangal said: “Last year, steel consumption in Thailand reached 16.48 million tonnes and this year we are seeing positive signs that will drive steel demand.”
The company had earlier predicted that Thai infrastructure projects would result in steel consumption increasing to 18-18.5mt in 2021.
Tata Steel’s Singapore steel plant, NatSteel, meanwhile produces rebar, wire rod, cut-and-bend rebar, pre-cages and steel couplers.
By Kallanish Team
