International Steel Mills
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/media/k2/items/src/4701254e309d1e8717ad996ebdf7bdc5.jpg)
Tata Steel and Thyssenkrupp in Talks on European Venture
Written by Sandy Williams
April 2, 2016
Tata Steel’s exit from the United Kingdom may be a precursor to a merger with Thyssenkrupp. Wall Street Journal reports Tata and Thyssenkrupp have been in high-level talks for more than a year about combining their European steel operations.
Whether the two companies are considering a buyout or forming a joint venture is unclear at this point. With the UK business out of the way, Tata’s major European asset would be the profitable Ijmuiden Works in the Netherlands. The steel plant has an annual crude steel production capacity of 7 million tonnes that is mainly used in automotive, construction and packaging applications.
“Given Thyssen’s interest in pursuing consolidation solely with another premium flat-steel producer, we believe this cleaning up of Tata’s portfolio may help free up the core Dutch assets for Thyssenkrupp,” said analysts at Jeffries.
Credit Suisse analysts agreed, noting Tata Steel’s exit from the UK would make a Thyssenkrupp deal more attractive. “This scenario, in turn, could lead to the creation of a 20 million tons high-quality steel producer in Europe and the eventual exit of steel for Thyssenkrupp, with arguably a strong synergy story,” said analysts at Credit Suisse as quoted by WSJ.
Tata Steel’s Dutch plant is about 124 milles from Thyssenkrupp’s Duisburg steel plant and in a good position logistically for Thyssenkrupp. Combining the 7 million tonnes of capacity at Ijmuiden Works with Thyssenkrupp’s 15 million tonnes at its Steel Europe division would make it a strong competitor to steel giant ArcelorMittal.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2023/04/sandy-williams.jpeg)
Sandy Williams
Read more from Sandy WilliamsLatest in International Steel Mills
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/01/Nippon-Steel_Logo_v2.png)
Nippon requests Japan’s government restrict steel imports from China
Nippon Steel and other Japanese steelmakers are lobbying for the Japanese government to limit imports of Chinese steel, according to a report in Reuters.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/SSAB.png)
SSAB taps Sjöström as new president, CEO
SSAB has appointed Johnny Sjöström as president and CEO of the Swedish steelmaker.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/ArcelorMittal.png)
ArcelorMittal Q2 earnings dive, Mexican strike hits profits
ArcelorMittal’s earnings fell precipitously from a year earlier as the company said current market conditions are unsustainable.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/2024/01/Nippon-Steel_Logo_v2.png)
Nippon withdraws from JV with China’s Baosteel
Japan’s Nippon Steel announced it was withdrawing from a joint venture (JV) with China's Baoshan Iron & Steel (Baosteel) that served the Chinese automotive industry.
![](https://www.steelmarketupdate.com/wp-content/uploads/sites/2/images/Featured_News_Icons/SSAB.png)
SSAB adjusts output in weak Q3, readies for Q4 rebound
SSAB said lower plate prices in the US were the primary reason for reduced results in the second quarter. With a dismal Q3 outlook, the Swedish steelmaker is adjusting production across its facilities. That includes moving up its annual US mill outage in anticipation of a better Q4. SSAB Americas Revenues in the Americas segment […]