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Tata Steel Slide
Steel Markets Europe Conference - Barcelona - June 30 2016
Successful examples of addressing
Overcapacity in Europe and elsewhere
By Dr. Henrik Adam
Tata Steel Slide
Trade flows rise of
53% in 10 years
Excess steelmaking
capacity rising year
on year
Over-capacity in
China is one of the
critical root causes
of destabilisation in
the EU market
The steel industry is globalising rapidly
Tata Steel Slide
Source: OECD, WTO
Brazil – import duties
USA – ‘Buy American’
and import licences
Argentina – import licenses
and reference prices
EU remains an open market o Steel import duties fixed at 0% o No non-tariff barriers o Strict state aid rules o Open procurement process
Columbia – Labelling
and certification scheme
Mexico – Increase
import tariffs
China – VAT export, subsidies
and FDI prohibition (foreign
control taking)
Thailand – Mandatory
certification national standards
Turkey – Increase import
tarifs and trade-related
measures
India – Increase import tariffs
and mandatory certification
national standards Morocco – Import duties
Indonesia - Mandatory
certification national standards
Egypt – Increase
import tariffs
Algeria – Franchise control system
and – Iicrease import tariffs
Saudi Arabia – ‘Buy Saudi’ for
steel & increase of import tariffs
Taiwan – Product
Certification Scheme
Iran – ‘Buy Iranian steel’
Kazakhstan – Import duties
Malaysia - Mandatory
certification national standards
Vietnam – Increase
import tariffs
Russia – increase import tariffs
Lack of level playing field in EU make it an attractive market for imports
Tata Steel Slide
9 8 8 9 9 13
69 62 66 60 61
62
75
2015 2014
78
2011 2010
70
2012
74
2013
70 69
EU 28 Imports EU 28 Market Supply
EU28 demand strip mill products [Mt]
22 23 29
36
61 75
17 23
23 23
28
35
40
2010
110
2014
90
2013 2015
45
59
2011
52
2012
Higher value products1
Commodity products
Chinese exports worldwide [Mt]
2015 demand growth in the EU was for a large part taken up by imports
Tata Steel Slide
o Future customer requirements must be met
taking into consideration the challenges
surrounding the steel industry
o The way to succeed is to focus on key pillars to
deliver customers the advantage they need
Tata Steel Slide
Serica®
Celsius® 355
Innovation & product differentiation to meet new customers’ needs
Provides reliable
performance in the most
arduous conditions
Guarantees low and
consistent waviness
and ensures a good
paint appearance
Tata Steel Slide
Protact® Provides the
opportunity to
increase yield
and be more
cost competitive
Innovation & product differentiation to meet new customers’ needs
Colorcoat
Prisma®
Provides combine
outstanding aesthetics
with long lasting
performance
Tata Steel Slide
Protact ® - Unique breakthrough product for our customers
Tata Steel Slide
Service differentiation – Early Vendor Involvement
o Increasing competition - forces us to speed
up our innovation processes
o To succeed it is crucial to invest in our
ability to develop smart design solutions
together with our customers
Tata Steel Slide
Service differentiation – Be agile and flexible in the market
o New way of partnering with our customers
o Strive to be far more agile and flexible in the
market to face volatile demand
o Avoid any disruptions in our customers’ processes
Tata Steel Slide
Local European presence to meet wide customer requirements
o Act as a network to meet European wide
customer requirements
o Adapt and control service offering
o Create cross selling opportunities by larger
presence in the market
Our presence
Tata Steel Slide
o The global steel industry is not a level playing field
o New opportunities by latest technologies to create a sustainable steel
value chain in Europe
o Focus on technical innovation
o Strive for smart supply
o Invest in proactive customer support
Together we make the difference
Tata Steel Slide
Questions?
Tata Steel Slide 14 Handelsblatt 2016 – Adapting to Changing Markets
Dr. Henrik Adam
Born 1964 – Essen, Germany
Mechanical Engineer, Specialised in Automotive Engineering
Chief Commercial Officer for Tata Steel Europe since 2011
Various roles within ThyssenKrupp since 1998, a.o.:
CEO TK Electrical Steel
Senior Vice President Sales & Engineering Auto
Chairman of various TK businesses in India, Japan and Europe
Board and Chairman positions outside Tata Steel / TKS
Board Member EEF – UK Manufacturing
Chairman WorldAutoSteel
A quick introduction…
Tata Steel Slide
Trade flows rise of
53% in 10 years
Excess steelmaking
capacity rising year
on year
Over-capacity in
China is one of the
critical root causes
of destabilisation in
the EU market
The steel industry is globalising rapidly