Tata Steel Takes A Rs 12,560-Crore Investment Hit On European Operations

As the company invests in cleaner production, on a consolidated basis, Tata Steel U.K. has recognised an impairment worth Rs 2,631 crore against its existing carbon-intensive, heavy-end assets—blast furnaces and coke ovens—at the Port Talbot site.

In addition, it also recorded a provision of Rs 2,425 crore towards restructuring costs, including potential asset closures and redundancies. Which means Tata Steel has taken a charge of Rs 5,056 crore on account of the restructuring of the Port Talbot operations alone.

The company also provided for Rs 1,187 crore on account of liabilities towards the British Steel Pension Scheme, taking the total impairment on its U.K. operations to more than Rs 6,200 crore.

The company did not disclose the extent of restructuring and impairments in its Mainland Europe operations.

Tata Steel Europe recorded second-quarter sales of Rs 18,846.7 crore as compared with Rs 21,558.7 crore a year earlier. Its EBIT loss stood at Rs 2,512.40 crore against an EBIT gain of Rs 1,787.6 crore last year.

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