In June 30th, the German industrial giant Thyssen Krupp and Tata Steel, based in India's Tata Group, signed an iron and steel business between the two sides in Europe and set up a joint venture of 50%.
The joint venture was named thyssenkrupp Tata Steel B.V. The company will become the second largest steel company in Europe after ArcelorMittal. The joint venture expects annual turnover of 17 billion euros, annual shipments of 21 million tons and employing about 48000 employees.
The two sides will establish a holding company in Amsterdam, Holland, and conduct unified management of the joint venture business. The holding company will adopt a two-tier management structure composed of the board of supervisors and board of directors. The board of supervisors and the board of directors have six seats respectively, which will be allocated equally between Thyssen Krupp and Tata.
Thyssen Krupp said that the two sides will work together to build a high-quality steel enterprise across Europe and make it a leader in quality and technology in the global steel industry. This cooperation is rooted in a very strong foundation, including mutual understanding of values and profound historical heritage.
Hay Rishi Beh Sin Gen, chief executive of Thyssen Krupp group, said: "our joint venture not only focuses on the challenges faced by the European steel industry. In fact, it has brought considerable value to both sides, and through synergy can produce an additional value of about 5 billion euros, which we both can not achieve independently.
Tata Steel was founded in 1907. It was the first comprehensive steel enterprise in Asia at that time. The market share of Tata Steel is more evenly distributed in developed markets in Europe and emerging markets in Asia, with a total of more than 50 markets in total and manufacturing plants in 26 countries.
According to the world iron and Steel Association statistics, with the gross steel production in 2017, ArcelorMittal is the largest Steel Corp in Europe with 97 million tons of capacity, and also the largest Steel Corp in the world. Tata Steel ranked tenth in the world, 25 million tons, and Thyssen Krupp ranked twenty-ninth in the world with 13 million tons.