KOLKATA (Commodity Online): Tata Steel announced that it has changed the name of its fully owned subsidiary Tata Ryerson to Tata Steel Processing and Distribution Ltd (TSPDL).

According to a press note, in 2009, Tata Steel had bought US-based Ryerson Tulls’ entire stake in Tata Ryerson, which had been set up as a 50-50 joint venture.

Tata Steel will now invest about Rs 500 crore in the subsidiary to increase its processing capacity by one million tonnes by 2012.

As Tata Steel hikes output of hot rolled products by 2.4 million tonnes by 2012, its processing arm would need to have additional capacity of one million tonnes.

TSPDL’s current steel processing capacity is 1.3 million tonnes a year. The subsidiary, which supplies components to Tata Motors for its Nano car, could also set up a processing facility at Sanand in Gujarat, close to the Nano plant.

TSPDL, which manufactures customised steel, metal sheets and plates, was set up in 1997. The company clocked a turnover of Rs 1,300 crore last year and processed 1.3 million tonnes of steel, which is set to increase given Tata Steel’s target to expand capacity by next year.

The rebranding exercise comes at a time competition is increasing in steel processing with the entry of Posco, Essar and Jindal.

Post your comment  (0)

Connect:

Post to Twitter

Post to Facebook