January 02, 2007 | Business Standard
Tata Ryerson weighs overseas processing unit
Tata Ryerson, the 50:50 joint venture between Tata Steel and Ryerson Tull of US, will be setting up a processing plant overseas, either in China or Africa, in the coming financial year. Sandipan Chakravortty, managing director, said the proposal would be placd at the company's board meeting in March. Investment for the project, which will be the company's maiden overseas foray, could not be determined. Chakravortty said there were many facilities in China, but those required modernisation. The location and whether the company would go for a buyout would be decided at the meeting.
The company had lined up a Rs 100-crore investment, exclusive of its overseas plans, for 2007-08. The investment would be made in the units proposed in Pune, Chennai, Pantnagar and Singur. Chakravortty said the investment would be funded through internal accruals and loans. While Singur would cater to the Tata Motors' small car project, Chennai would be for heavy vechicles to service customers such as Caterpillar, BEML, Komatsu, among others. The Pantnagar service centre is eyeing Tata Motors, Mahindra & Mahindra, Sharda Motors, Bajaj Auto and Voltas, which have projects either at Pantnagar or in the vicinity.
These projects are likely
to come up in 2007-08, along with the foreign facility.
In 2008-09, the company plans to have another facility
near Kharagpur for the Telcon project. Telcon is investing
Rs 300 crore in an earth-moving equipment plant at
Kharagpur in West Bengal.