Tata steel cuts capex by $ 2 billion

Tata Steel Group will reduce its capital expenditure for the next two years by $2 billion as it faces up to lower earnings during the economic downturn, Tata Steel Group md B Muthuraman said. The group will press ahead with a planned brownfield expansion at its Jamshedpur works to 10 million tpy by 2011 and should be completed on time, he said. The company has not previously announced precise capex plans. Muthuraman said Tata, whose European subsidiary Corus may shed another 2,000 jobs, will focus spending on "value-creating assets with accelerated benefits". Greenfield projects planned in the Indian states of Chhatisgarh, Jharkand and Orissa are less likely to be pursued with the same vigour, analysts said. “We are working on the Orissa project and we...
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