The year 2013 has been a challenging one for the steel industry which is facing the repercussions of a slowdown in the global economy but Tata Steel expects the measures it has in place to see through the tough times.

Addressing shareholders at the company’s 106 annual meeting, Cyrus Mistry, Chairman, said the global steel sector was impacted by overcapacity.

Mr. Mistry said that due to volatile raw material prices and demand weakness in key markets, “the next 18-24 months will be challenging for Tata Steel. Overcapacity in China and low demand in Europe are key concerns”.

Mr. Mistry said that in spite of the challenging environment, the company had implemented a three million tonne capacity expansion at the Jamshedpur facility taking the capacity to 9.7 million tonnes per annum. He said the Kalinganagar project would significantly strengthen its product portfolio.

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