In 2017, the European steel industry has seen the biggest merger. Tata Steel Europe and ThyssenKrupp AG have signed a definitive agreement to form joint venture and a new company named as ThyssenKrupp Tata Steel B.V. This joint venture will be the second largest in Europe that will serve as high-quality steel manufacturer in pan Europe.
Tata Steel and ThyssenKrupp are recognized as technology and process innovators. The joint venture will combine technical knowledge of firms to strengthen and develop their products. The joint venture will develop inroads for other suppliers to tag along with the growth.
ThyssenKrupp was located only in Belgium and Europe, whereas, presence of Tata Steel in pan Europe will benefit ThyssenKrupp. The steel manufacturing process will be enhanced by best practices from both the companies. The administration and sale efficiency will be improved and the unified R&D capabilities will help to get the product to the market in a short-time. This joint venture is expected to cut down the cost in various domains with improved efficiency. The newly formed company is expected to produce 21.3 million tons of steel annually.
In Europe, the flat steel market is dominated by France, Italy, the U.K., and Germany. By 2025, the flat steel market is expected to witness steady growth in Europe. The demand from transportation, automotive, energy, and construction sector is expected to increase which will further drive the market.