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 international consultant with extensive experience in global sourcing and business development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global marketing and sourcing operations. He has extensive experience in international business development to accommodate rapid growth. Skilled in building top-performing teams, bench-marking performance, and developing organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. Tom founded Nova Advisors with the mission of providing expert Global Business Development consulting services for companies seeking to expand their market share as an independent consultant. Tom has a network of experts and advisors throughout the Asia-Pacific region and North America. His expertise includes business development, global sourcing, manufacturing, commodities, logistics, QA/QC, FDA, regulatory compliance, sustainability, and supply chain optimization. Tom is experienced in the medical device, apparel, consumer goods and technology services verticals helping companies advance their global sourcing capabilities and develop new markets through a local and sustained approach. Located in SE Asia and the United States, Tom expands market reach to drive sales. His global sourcing strategy includes directly negotiating with commodity suppliers, supply chain networks and distributors for optimal terms based on his expertise and first-hand knowledge of the players. Contact Tom to use his consulting service to increase your global market and make global sourcing profitable for you in the Asia Pacific Region and the United States. http://www.NovaAdvisors.com thomas@NovaAdvisors.com USA Direct: +1.904.479.3600 SINGAPORE: +65.6818.6396 THAILAND: +662.207.9269
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