Europe – Thyssenkrupp AG and Tata Steel have signed a memorandum of understanding to form a joint venture to combine their European steel activities. Both companies will have an equal stake in the new company. The new company will be the second-largest steelmaker in Europe.
The companies’ goal is to create a leading European flat steel player to be positioned as a quality and technology leader. The new entity is projected to have pro forma sales of about Euro 15 billion, shipments of about 21 million tonnes annually and a workforce of about 48 000 across 34 locations. The joint venture, Thyssenkrupp Tata Steel, will be managed through a holding company based in the Netherlands.
Heinrich Hiesinger, CEO of Thyssenkrupp AG comments: ‘Under the planned joint venture, we are giving the European steel activities of Thyssenkrupp and Tata a lasting future. We are tackling the structural challenges of the European steel industry and creating a strong No. 2.’
The Tata Group and Thyssenkrupp have a strong heritage in the global steel industry and share similar culture and values, according to Natarajan Chandrasekaran, chairman of Mumbai, India headquartered Tata Steel. ‘This partnership is a momentous occasion for both partners, who will focus on building a strong European steel enterprise. The strategic logic of the proposed joint venture in Europe is based on very strong fundamentals, and I am confident that Thyssenkrupp Tata Steel will have a great future.’