Tata Steel has stepped up investments in Canada and France.
Tata Steel Minerals Canada, a joint venture between New Millennium Iron (NM) and Tata Steel, is to invest $12.8 million in a new multi-user dock facility in Quebec’s Port of Sept Iles, to enhance EU iron ore shipments.
The joint venture has a near-term direct shipping ore project under construction and is completing a feasibility study on its Taconite Project in Canada.
New technology
In a statement with regards to its European operations, the Indian steel major said it is to invest €12 million in new technology so it can produce longer wear-resistant rails at its French steel mill. With the latest amount, Tata Steel has invested almost €50 million in the facility over the last three years.
The new technology will enable Tata Steel to heat-treat rails of up to 108 metres in length at its Hayange facility in the Lorraine region of north-east France.
Heat-treated rails can last up to three times longer than standard rails when used in high-wear conditions such as heavy traffic, high-axle loads or tight curves.
In a statement, Gerard Glas, head of Tata Steel’s Rail Sector said, “The investment reinforces our commitment to developing a range of premium rail products suitable for different environments around the world”.
Last year, Tata Steel had secured a major order to supply railway lines for a new 300.8 km high-speed track between the French cities of Tours and Bordeaux. And in 2009, French railway operator SNCF signed a $430-million contract with Tata Steel to buy rail for up to six years.
In Canada, an agreement has been signed with the Sept-Iles Port Authority providing access to a minimum of 5 million tonnes of annual shipping capacity from the new multi-user deep water dock facility. In a statement, the Canadian firm has said the Sept-Iles harbour is an ideal location for year round shipping in large ore carriers to Tata Steel’s European plants.
Dean Journeaux, President and CEO of NM, said in a statement, the new dock would enable the joint venture to reduce costs associated with loading of vessels and shipping to Europe.