The proceeds from the sale of Tata Steel Europe’s Netherlands plant to SSAB of Sweden will go towards reduction of debt, the steelmaker said on Tuesday. The due diligence would be completed in two months following which the transaction value would be known, the top brass of Tata Steel said. The deal would further strengthen the company’s balance sheet. Currently, Tata Steel Europe has a consolidated long term debt of €1.7 billion, they said.The 7.5-million tonne per annum plant in the Netherlands is being separated from Tata Steel U.K. to facilitate the sale. The Netherlands unit does not have any material debt, Koushik Chatterjee, ED and CFO, Tata Steel, said. This year, Tata Steel has already reduced debt by ₹8,000 crore and efforts are on to pare more debt. The company has a target to reduce debt by $1 billion every year.T.V. Narendran, CEO and MD, said Tata Steel had been improving its performance quarter by quarter and the next two quarters in India would be better than the previous quarters.
A letter from the Editor
Dear subscriber,Thank you!Your support for our journalism is invaluable. It’s a support for truth and fairness in journalism. It has helped us keep apace with events and happenings.The Hindu has always stood for journalism that is in the public interest. At this difficult time, it becomes even more important that we have access to information that has a bearing on our health and well-being, our lives, and livelihoods. As a subscriber, you are not only a beneficiary of our work but also its enabler.We also reiterate here the promise that our team of reporters, copy editors, fact-checkers, designers, and photographers will deliver quality journalism that stays away from vested interest and political propaganda.Suresh Nambath
