Tata Steel shifts 190 from losing tubes division...

Written by fe Bureau | Jamshedpur | Updated: Oct 14 2014, 08:28am hrs
Tata Steel on Monday said it was transferring 190 employees of its tubes division whose profitability has been going down over the last few years due to rising costs.

The division's profitability has been under pressure due to surmounting costs, primarily fixed costs.

The fixed costs of the tubes division are almost three times higher than for the competition, which makes the division uncompetitive, the company said.

After weighing various options, including closure of a few units or running them with reduced manpower, the management decided to transfer 190 workers to make the division cost-competitive, it said.

...as sales increase 4% y-o-y in H1 FY15

Tata Steels Indian operations registered a 4.2% growth y-o-y in its sales during the first half of the current year over the same period of last year, while q-o-q, sales grew 3.19%.

The steel major logged hot metal production of 2.58 million tonne in Q2 (up 5% y-o-y) and 5.11 mt in H1 (up 4% y-o-y). While crude steel production was 2.27 mt in Q2 and 4.60 mt in H1 (up 2% y-o-y), its steel output increased 0.3% y-o-y in Q2 (to 2.2 mt) and by 3% y-o-y in H1 (to 4.46 mt).

The company said its pellet plant achieved its best-ever Q2 production of 1.40 mt (previous best 1.15 mt in Q2 FY14) and its best-ever H1 production of 2.81 mt (previous best 2.19 mt in H1 FY14).