Tata Steel to supply Britain’s rail network for 5 more years

Picture of Tata Steel France Rail plant

India’s Tata Steel, one of the world’s biggest steelmakers, announced on Monday it has won a contract to supply rail track to Britain’s railway infrastructure operator Network Rail for at least five more years.

Mumbai-based Tata Steel said in a statement that Network Rail plans to source over 95 per cent of its rail from Tata Steel until 2019, with the option to extend the deal until 2024.

The announcement comes as Tata Steel, which bought Anglo-Dutch steel giant Corus for $13.7 billion in 2007, has been struggling to improve its European unit’s performance in the face of the eurozone debt crisis.

The statement gave no indication of the value of the deal.

Tata Steel is the current supplier of rail to Network Rail, which runs and maintains Britain’s extensive rail infrastructure, and loss of the contract could have put its Scunthorpe plant in Britain in peril.

The contract could see Tata Steel, which employs 18,500 people in Britain, supplying more than a million tonnes of rail for the nation’s passenger and freight lines, the statement said.

“This is fantastic news. I am delighted the rail network in Britain will continue to be made and maintained with our UK rail,” said Tata Steel chief commercial officer Henrik Adam in a statement.

Network Rail’s group finance director, Patrick Butcher, said the company is renewing and improving more of Britain’s railway over the next five years.

“Rails are at the root of everything we do and this contract secures everything we need to keep improving the network,” Butcher said in the statement.

The British rail network now carries 1.5 billion passengers every year — more than at any time in over 60 years.

The latest Network Rail deal will account for around five per cent of the annual steel output from Tata Steel’s Scunthorpe site in Britain.

Tata Steel, part of India’s steel-to-tea Tata Group, recently reported net profit nearly doubled to 11.39 billion rupees ($186 million) for the financial first-quarter to the end of June, from a year earlier while sales edged three per cent lower.

Tata Steel has operations in India, Europe and Asia.

Source : Channel News Asia | October 21, 2013

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About thomasdinnocenzi

Thomas D'Innocenzi is a highly accomplished, results-focused senior international executive with extensive experience in global sourcing and market development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global sourcing operations worldwide. Extensive experience in international market development operations to accommodate rapid growth. Skilled in building top-performing teams, benchmarking performance, and restricting organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. As principal of Nova Advisors, LLC I’ve assembled an exemplary team that brings with them the knowledge and experience gained from starting up a Global Sourcing program with multiple Fortune 500 companies as well as the largest supplier network throughout the Asia-Pacific region. We have experience and expertise in more than a thousand medical and pharmaceutical products in manufacturing and sourcing at the best value. The right product, the right price point and the right branding fueled these successes that resulted in double-digit growth for top line sales and bottom line net margins for our customers. What sets us apart: • Our reach includes a large network of suppliers & manufacturers spanning 13 countries in Asia-Pacific region • We understand the manufacturing process and the business of the supplier and the buyer • Our company culture is based on quality assurance and our process is based on local quality control Our commitment is to be your partner offering the best products and services at the lowest cost. Contact me to discuss how we can make the global marketplace work for you. thomas@novaadvisors.com In addition, I am open to discussing opportunities in global sourcing, international marketing & sales, logistics and medical/pharma in Thailand, Vietnam, Malaysia, Philippines & Japan. Aside from my work I enjoy piano, astronomy, physics, and assisting my daughters with their studies. SPECIALTIES: Global Sourcing, Supply Chain Management, Business Development, Marketing, Logistics, Global Networking, Market Development, Healthcare Solutions, Pharmaceuticals, Medical Devices, Technology, Asia, Southeast Asia, US and Canada
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