China's HBIS to buy 70 pct of Tata's Southeast Asian steel projects

[TaiShang]

29-Jan-2019

China's HBIS to buy 70 pct of Tata's Southeast Asian steel projects
CGTN

Chinese steelmaker HBIS Group, which is the world's third-largest steelmaker by output, agreed to buy 70 percent of Indian conglomerate Tata Steel's projects in Southeast Asian countries on Monday, which is considered a "smart move" by experts.

HBIS will take over Tata Steel's projects in Singapore, Thailand, Vietnam and Malaysia, in order to maximize opportunities in the region on technology, channels and management.

"Through the talks, we found that HBIS and Tata Steel share the same view on the world steel industry's future, which is the foundation of our cooperation," said Yu Yong, president of HBIS Group.

HBIS will seize the opportunities offered by the growing steel demand in Southeast Asia, Yu added.

Xu Xiangchun, information director and analyst with iron and steel industry consultancy mysteel.com, said Southeast Asia has been a popular destination for steel investment in recent years because of the large population and its fast economic growth.

According to mysteel.com, the steel shortage in Southeast Asia is around 100 million metric tons annually, and the region depends on imports.

TV Narendran, chief executive officer and managing director of Tata Steel, said he is confident that the steel projects in Southeast Asia will continue to grow in the future after the investment.

"Tata Steel shares the same culture with HBIS and we will explore more cooperative possibilities in future," he said.

https://news.cgtn.com/news/3d3d514e32557a4d32457a6333566d54/index.html

***

Good coopearation @Han Patriot , @Viet

 

[Han Patriot]

29-Jan-2019

China's HBIS to buy 70 pct of Tata's Southeast Asian steel projects
CGTN

Chinese steelmaker HBIS Group, which is the world's third-largest steelmaker by output, agreed to buy 70 percent of Indian conglomerate Tata Steel's projects in Southeast Asian countries on Monday, which is considered a "smart move" by experts.

HBIS will take over Tata Steel's projects in Singapore, Thailand, Vietnam and Malaysia, in order to maximize opportunities in the region on technology, channels and management.

"Through the talks, we found that HBIS and Tata Steel share the same view on the world steel industry's future, which is the foundation of our cooperation," said Yu Yong, president of HBIS Group.

HBIS will seize the opportunities offered by the growing steel demand in Southeast Asia, Yu added.

Xu Xiangchun, information director and analyst with iron and steel industry consultancy mysteel.com, said Southeast Asia has been a popular destination for steel investment in recent years because of the large population and its fast economic growth.

According to mysteel.com, the steel shortage in Southeast Asia is around 100 million metric tons annually, and the region depends on imports.

TV Narendran, chief executive officer and managing director of Tata Steel, said he is confident that the steel projects in Southeast Asia will continue to grow in the future after the investment.

"Tata Steel shares the same culture with HBIS and we will explore more cooperative possibilities in future," he said.

https://news.cgtn.com/news/3d3d514e32557a4d32457a6333566d54/index.html

***

Good coopearation @Han Patriot , @Viet

Wow, even TATA needs Chinese cash now?

 

[TaiShang]

Wow, even TATA needs Chinese cash now?

Money and most likely better management standards.

 

[Han Patriot]

Money and most likely better management standards.

I think Indians can talk well in English, but if you talk about money management, nobody beats the Hongkies, those Li KaShing types.

 

[Bussard Ramjet]

Wow, even TATA needs Chinese cash now?

TATA has taken a lot of loan and is exiting from peripheral businesses. Like their is no use to have steel plants in South East Asia really for an Indian behemoth.

 

[Han Patriot]

TATA has taken a lot of loan and is exiting from peripheral businesses. Like their is no use to have steel plants in South East Asia really for an Indian behemoth.

Oucchh, no need to get so sensitive bhai. TATA is a debt ridden company.

 

[Theparadox]

Oucchh, no need to get so sensitive bhai. TATA is a debt ridden company.

 

[TaiShang]

TATA has taken a lot of loan and is exiting from peripheral businesses. Like their is no use to have steel plants in South East Asia really for an Indian behemoth.

That's why I said it is a win-win.

 

[Han Patriot]

That's why I said it is a win-win.

Well if they don't sell, they could go bankrupt. At least some Chinese management can reduce the red in their books.

 

[Bussard Ramjet]

Well if they don't sell, they could go bankrupt. At least some Chinese management can reduce the red in their books.

Stay easy dude. There is a LOT of RED in Chinese SOE books as well. A LOT. Total debt by SOEs is greater than the entire GDP of China.

It is just that in India, finance is more determined by market forces. TATA can't get cheap financing again and again to keep piling on debt like Chinese SOEs get. TATA will have to pay the loan back or its credit worthiness will keep decreasing.

 

[Han Patriot]

Stay easy dude. There is a LOT of RED in Chinese SOE books as well. A LOT. Total debt by SOEs is greater than the entire GDP of China.

It is just that in India, finance is more determined by market forces. TATA can't get cheap financing again and again to keep piling on debt like Chinese SOEs get. TATA will have to pay the loan back or its credit worthiness will keep decreasing.

So tell me how much RED there is? I am waiting. TATA is a dying company and is basically selling assets to Chinese companies who are in sooooo much debt.

You seem to think Chinese SOEs function like Indian PSUs.

State-owned enterprises record profit increase
http://www.chinadaily.com.cn/a/201901/16/WS5c3ec382a3106c65c34e4cce.html

 

[TaiShang]

Well if they don't sell, they could go bankrupt. At least some Chinese management can reduce the red in their books.

Maybe they should entirely withdraw from heavy industries and concentrate on services, which is India's real strength.

 

[Han Patriot]

Maybe they should entirely withdraw from heavy industries and concentrate on services, which is India's real strength.

The point is our services industry is much larger but it caters to Mandarin speakers. If we speak English en mass, their economy would be decimated.

 

[TaiShang]

The point is our services industry is much larger but it caters to Mandarin speakers. If we speak English en mass, their economy would be decimated.

World's largest service economy.

 

[Han Patriot]

World's largest service economy.



View attachment 536016

It doesn't matter, low end, medium end, high end, just take all the jobs for our country, we have 1.4 billion mouths to feed.