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Tata Steel’s Third Quarter Indian Operating Performance: FY’09

Jamshedpur, January 06, 2009

Tata Steel completed the third quarter of FY09 with an increase in hot metal & crude Steel production. The hot metal production at 1.70 million tonnes and crude steel production at 1.50 million tonnes was higher by 23% and 17% respectively as compared to volumes in the same quarter last year. However, the saleable steel production during the quarter almost remained at the same level (1.24 million tonnes) as that of last year inspite of planned major shutdown of Hot Strip Mill.

The third quarter sales at 1.07 million tonnes was lower by about 14% as compared to corresponding quarter last year due to current economic slowdown. However, 27 % growth has been registered in the Long Product sales during the third quarter at 0.48 million tonnes.

Tata Steel commissioned 3rd Billet Caster at Steel Melting Shop#1 and completed upgradation of Roughing Mill of Hot Strip Mill as a part of 1.8 mtpa expansion of the existing units. Tata Steel is also continuing with its growth plan to reach the Jamshedpur Works capacity of 10 mtpa by 2010.

Q3 FY09 was a momentous period for Tata Steel when it won the coveted Deming Application Prize in recognition of its efforts towards practicing the TQM philosophy in its operation at Jamshedpur. It is the only Integrated Steel Plant in the world, outside Japan, to have won this award.

Continuous improvement was the thrust area for Q3 FY09 to bring down cost and improve productivity. The newly commissioned blast furnace (known as H Blast Furnace) has ramped up and has produced more than 8500 tonnes per day for many consecutive days as against the rated capacity of 7150 tonnes per day. 50 years old Merchant Mill did best monthly production for 2 consecutive months during the quarter with an improved yield of 96.02% as compared to 95.45% last year. Yield of Wire Rod Mill (WRM) has also increased to 98.80% from last year figure of 96.35%.

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