Can South African market accommodate both Mittals and Tatas?
By Fakir Hassen. Johannesburg, South Africa, 02:01 PM IST The South African government is talking of setting up a steel plant in collaboration with India’s Tata Group to take on market leader Mittal SA. Analysts here however feel that the market is not big enough for two large players. There is speculation here that the government, which a few years ago handed over control of the former state steel producer Iscor to London-based India-born steel magnate Lakshmi Mittal’s company, is now considering establishing a state-funded steel plant again as an alternative to Mittal SA. The Tatas are being considered as a major player in this process. Ironically, Mittal had bailed out the ailing state-owned Iscor with a huge cash injection before taking a controlling interest in the company, which was renamed Mittal SA. Earlier reports indicated that the government had initiated a study into the viability of building a steel plant to support its industrial growth strategy. This comes at a time when
