100th Annual Report 2006-2007 - Tata Steel

Operational Highlights
NSA increased its stake in the following companies during the
year:
• NatSteel (Xiamen) Limited, China, from 50% to 100%,
• NatSteel Trade International Pte. Ltd., Singapore, from 60%
to 100%, and NatSteel Vina Co. Limited, Vietnam, from 33.9%
to 56.5%.
• In China, a new PC Strand line was commissioned in
Wuxi Jinyang Metal Products Co.
• NSA launched the Total Operational Performance (TOP)
programme to achieve cost-reduction targets through the
implementation of ideas for improvement.
• The Tata Business Excellence Model (TBEM) was also
launched to enhance focus on business excellence.
Production Highlights
Various improvement initiatives resulted in record high billet
production and rolling achieved record high outputs in 2006-07.
Production output (000’ mt)
2006-07 2005-06
NSA Group (including JVs) 1540 1311
NSA Group (including JVs) 1077 855
In Singapore, billet production increased by 9% (2006-07: 633k;
2005-06: 584k) and rolling mill production went up by 21%
(2006-07: 667k; 2005-06: 550k).
Tata NYK
• Tata Steel has entered into a joint venture agreement with
Nippon Yusen Kabushiki Kaisha (NYK Line) for setting up a
shipping company to cater to dry bulk and break bulk cargo.
Each promoter will hold a 50% stake in the joint venture
company.
• This joint venture is in keeping with Tata Steel’s growth
plans. It will help address the company’s growing need
for transportation of large quantities of raw materials and
finished steel.
During the year NSA invested in a new sidewall oxygen lance
and carbon injection system for the electric arc furnace
in Singapore. This has significantly reduced electricity
consumption by 10%. Production and sales of downstream
products have increased across all products. Mesh and
precage increased significantly by 35% and 31%, respectively.
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