Tata to merge Corus to cut UK costs: Report

15 Dec 2008

Tata Steel is to merge its British unit Corus, formerly known as British Steel, in a cost-cutting move that could threaten thousands of UK jobs, a British Sunday newspaper reported. The proposed merger next year would result in the creation of the world's second biggest steel maker after Arcelor Mittal, according to a report in the Mail on Sunday. The move was part of plans by Tata to cut costs in the UK by 350 million pounds ($521 million) following the Indian industrial giant's acquisition of Corus, which was agreed in 2006. Meanwhile, the Independent on Sunday newspaper said Corus was threatening to move its European operations to China unless governments overhauled carbon emission regulations. The newspaper cited the group's chief executive Philippe Varin as saying it would not continue to produce steel in Europe if it was forced to buy carbon dioxide credits on the market without help from governments to fund clean energy technology to improve its production processes.

 

However, we are of the opinion that this is unlikely to happen in near future as the company has plans to bring all its foreign companies under one roof of Tata Steel Global Holdings

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