Representational Picture courtesy livemint.com
Tata Steel has decided to improve its productivity rather than retrenching its workforce in view of the prevailing slump in the steel sector.
Tata Steel vice-president Suresh Dutt Tripathy reportedly said, “In view of the slump in steel sector across the world, we have initiated steps to address the challenges and launched ‘Sikhar 25’ campaign to involve employees and officials to enhance productivity in respective areas.”
Interacting with reporters in Jamshedpur today, Tripathy said the steel sector was passing through a bad phase due to demand-supply gap and one of the major cause behind it was dumping of steel by China at less than the cost of the production.
“The country is producing 80 million tons of steel as against the capacity of 110 to 115 million tons, but China is producing 840 tons of steel against their capacity of 1,200 million tons per annum,” he said, adding that out of the 840 million tons, steel consumption of China was 720 million tons, leaving 120 million tons surplus.