Mumbai-based Tata Steel Group reported a 25% increase in profits (EBITDA) year-on-year in its European division following the upgrade of its UK and Dutch facilities.
The global steel giant’s European operations generated some Rs7.7bn (£78m) in profits in the three months to June 2013, up from Rs6.2bn in the same quarter last year.
The increase followed the upgrade of two key facilities at Port Talbot, Wales, and Ijmuiden, in the Netherlands.
“Our European facilities recorded higher production volumes after we completed some major plant refurbishments last year, which gave us a more stable production platform and greater operational flexibility,” said Karl-Ulrich Köhler, Tata Steel Europe managing director and chief executive.
However, steel deliveries decreased slightly to 3.14 million tonnes as a result of subdued demand in the European market. Revenues were down about 10% year-on-year.
Köhler nonetheless expressed optimism looking ahead: “There have recently been encouraging signs of improving economic conditions in some European economies, the UK in particular, and we are poised to capitalise should these translate more strongly into increased demand from steel-intensive sectors.”
The group reported Rs37bn profits in the period, up some 5% year-on-year.