Tata Steel has denied that the 17-day shutdown (between November 27 and December 13) at its hot strip mill (HSM) here has anything to do with the current economic slowdown or an inventory build-up. Replying to a query from FE on Friday, Tata Steel corporate communications chief Sanjay Choudhry said, ?The upgradation of the hot strip mill is according to the annual capital expenditure and maintenance plan, which was decided two years ago, and is not linked to the market situation. So, it will not have any impact on the company?s sales plan for the year.?
Tata Workers Union (TWU) president Raghunath Pandey also said the shutdown of the mill, which produces hot rolled coils, was part and parcel of the normal scheduled maintenance break. All plants take such breaks. It was in no way connected either to a stock buildup or a production slowdown, he reiterated.
?There is nothing new about it,? Pandey told FE on Friday.
A section of the local media has commented on the shutdown as an unusual event and connected it to the economic turbulence.
Meanwhile, the steel major has come out with a new-look employee separation scheme that aims at cutting down its workforce, which, at present, stands at around 16,500 at its plant here. The scheme will remain effective from November 20, 2008 to January 15, 2009.