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Tata Steel not selling African unit: Nerurkar

By IANS,

Kolkata : Steel major Tata Steel is not selling its South African unit, a top company official said here Wednesday.

“We are not selling the plant…we are always approached by the buyers interested in our assets but it doesn’t mean we are selling,” H.M. Nerurkar, managing director, told reporters on the sidelines of a seminar organised by Confederation of Indian Industry.

He was asked to comment on earlier reports which said the company was looking to sell its South African unit.

Tata Steel KZN Pte, set up in Richards Bay, South Africa, in 2006, made profit last fiscal (2009-10).

“Now that the operations have started making profit, we plan to stabilise it and looking at buying ferro chrome ore mines there to secure supplies,” he said.

About Tata Steel’s Kalinganagar project in Orissa, he said the construction work of the plant would start in October and the company plans to commission the plant in 2014-15.

“It normally takes three years to set up a plant, so we expect commercial production from it by 2014-15.”

On steel prices, Nerurkar said it would remain at current levels till prices of iron ore remains around $130-$140 per tonne and coal prices at $220 per tonne.