Tata Steel is scouting for acquisition of wire-manufacturing companies in Europe to boost capacity of Corus. Anglo-Dutch steel-maker Corus, which was acquired by the Tata Group company, manufactures wire rods. A senior executive of Tata Steel said the move is in tandem with the group’s plan to become the third largest player in the wires segment. Tata Steel has been following a new strategy, where the primary product is manufactured closer to the raw material site, while the finished product will be closer to the market. The wire division is a strategic business unit of Tata Steel and the company also operates a subsidiary in Sri Lanka. Tata Steel’s Tarapur and Jamshedpur plants together manufacture 300,000 tonnes of wire, which is being increased to 450,000 tonnes. “The capacity increase would be completed by the first quarter of the next financial year,” said the executive.
Tata Steel will also look at buying wire-making companies in Asia. The wire division generates revenue of around Rs 3,000 crore, of which India accounts for 57 per cent and South-East Asia 25 per cent. Tata Steel’s global wire business is run by entities such as Tata Steel Wire Division, India, The Siam Industrial Wire, Thailand, Wuxi Jinyang Metal Products, China, Indian Steel and Wire Products, India, and Lanka Special Steel, Sri Lanka. The group manufactures a variety of wires catering to the automobile, construction, power and general engineering industry sectors. It manufactures wires in black and coated varieties. While Tata Steel’s global wire business has manufacturing facilities in India, Thailand and Sri Lanka, the company has established its products in the Australian, European and US markets.