Tata Steel, India's biggest producer may be seeing a change in its fortunes. After months of struggling with falling demand and a cut-in production at its biggest overseas purchase Corus, things, it seems are looking up.
Well, is the worst over for Corus, Tata Steel's European subsidiary?
Probably yes, as Corus, a leading steel maker in the region, is all set to ramp up production to 100 per cent by December from about 50 per cent of its total 20 million tonnes/yr capacity, as demand for its malleable steel picks up globally.
B Muthuraman, vice chairman of Tata Steel, said, “International operations are looking better and demand is definitely better in the world as a whole, including in Europe, presently at 80 per cent production.
At the beginning of 2009, Corus' output fell to a low of 10 million tones, but as the economic scenario improved, it rose to more than 60 per cent.
The demand is improving in India too, but state-run steel maker SAIL, who is also Tata Steel's top rival, does not see prices increasing.
Meanwhile, resuming 100 per cent production is just one chapter in Corus' history. But the fate of several hundreds of its workers, who were asked to pack up, still remains to be seen.
Does this mean that they are back in the plant for good?