Tata Iron and Steel Company Limited ("Tata Steel") of India has established one of the strongest pan-Asian steel manufacturing groups by formalising its partnership with NatSteel Asia Pte Ltd ("NatSteel Asia").

Tata Steel has completed subscribing for 100% equity of NatSteel Asia Pte Ltd, which has steel assets in Singapore, Malaysia, Thailand, Vietnam, the Philippines, Australia and China. Tata Steel had earlier entered into an agreement for the transaction on 16th August 2004. This investment is one of the largest by an Indian company in Singapore.

The Board of NatSteel Asia has now been re-constituted to have Mr. B Muthuraman, Managing Director of Tata Steel, as Chairman of NatSteel Asia and Mr. Oo Soon Hee as President and Chief Executive Officer. The other members inducted into the NatSteel Asia Board are Dr. T Mukherjee, Deputy Managing Director of Tata Steel and Mr. Koushik Chatterjee, Vice President for Finance at Tata Steel.

NatSteel Asia, which operates across seven countries, is one of the best placed groups to compete for burgeoning opportunities in the Asian steel market. The group plans to explore opportunities within these seven countries in which it operates and is also looking at other emerging markets in Asia.

In a letter to all employees, Mr. Ratan N Tata, Chairman of Tata Steel said: "Tata Steel is today one of the most profitable steel companies in the world. By the end of the decade, we would want the Tata Steel/NatSteel Asia combine to become one of the most profitable and most admired steel companies in the world."

Mr. B. Muthuraman, Managing Director of Tata Steel said: "The partnership brings one of the world's most profitable and India's largest private sector manufacturing group together with one of Southeast Asia's most respected steel companies."

"This partnership forges the strengths of two best-of-breed companies to tap emerging opportunities in the Asian steel market," he said.

For the year ended 31 March 2004, Tata Steel recorded a remarkable turnover and profit. For the nine months ended 31 December 2004, they registered profit.

Mr Oo Soon Hee, President and Chief Executive Officer of NatSteel Asia, added, "This partnership creates a group that is in a unique position to tap growth opportunities in Asia. With the backing of Tata Steel, we will be able to leverage our competitive advantages like lower input costs and deliver better value in the Asian marketplace.

"In sum, this partnership is taking the first step in creating a strong Asian steel group."

Tata Steel plans to make and sell 15 million tonnes of steel a year by 2010 through organic growth and acquisitions. It now makes four million tonnes of steel a year in its Steel Works plant in Jamshedpur in India and a further one million tonnes will be added by September 2005.

It is also setting up a new integrated steel plant with 6 million tonnes per annum capacity in the state of Orissa, India, which will go onstream in 2008.

NatSteel Asia now produces about two million tonnes of steel a year across its regional operations. The Singapore-headquartered operation serves as the hub providing R&D, engineering, logistics, sourcing and other support services.

About Tata Steel

The Tata Iron and Steel Company Ltd, an integrated steel maker, with captive iron ore and coal mines, is rated among the top four "world-class" steel companies by World Steel Dynamics. It has up-to-date technology and facilities and a strong customer orientation. Its focus is on the automobile and construction industries and has several notable global tie ups including with Arcelor and Nippon Steel. It is a strong domestic player in India.

Besides steel products, which includes hot rolled and cold rolled coils, galvanized sheets, rebars, wire-rod and wires, Tata Steel is a significant global player in Ferro-chrome. Apart from its steel business, the company continues to set the benchmark in corporate social responsibility. As part of its social outreach, it now helps about 600 villages around its steel and mining operations in India.

Tata Steel shares are listed on the Stock Exchange, Mumbai and the National Stock Exchange of India.