Tata Steel to adopt Corus technology for new units
The Economic Times — September 7, 2007

Tata Steel is working on a strategy roadmap entitled 'Vision 2015' to chalk out plan to emerge as a top league player in the global steel industry. It is also planning to use an alternative technology, which has been developed by Corus at its proposed steel plants in India.

Tata Steel MD B Muthuraman said on Friday: "Corus has been working on the technology for the past 5-6 years. We hope to bring it from the laboratory to a semi-commercial stage in a couple of years. Tata Steel may use this technology at its proposed steel plants in India." The company is setting up new units at Orissa, Chhatisgarh and Jharkhand.

Tata Steel is working on commercialising this alternative technology that promises to cut down costs. "A vision statement is being worked upon and we will be ready with it by December," he said.

The new technology, based on direct reduction process, uses iron ore fines and coal for iron making, instead of using more expensive lump ore and coking coal.

"A vision statement is now being worked upon and we will be ready with it by December 2007," Muthuraman said. The document will look at all key aspects of achieving its vision and laying down the objectives in measurable forms. Tata Steel expects to gain higher synergies from its Corus deal. "We are working on a second wave of synergies which will look at breakthrough ideas," Muthuraman said.

The first wave of synergies have already been worked upon and have started generating desired results. This year, which is the first year of combined operations, cost savings of $130 million is slated to be generated, followed by a similar amount in savings in the next years. After the third year, the Tata-Corus combine is estimated to yield an annual cost savings of $400 million or around Rs1,700 crore.