‘We are Growing and are Stronger Because of the Takeover”

KARL-ULRICH KOEHLER joined Corus when the company was not at its best. Today, as its leader, he has his job cut out for him — to contribute to the growth and profitability of the Tata Steel Group.

You took up this assignment when Tata Steel Europe was going through a tough time...

It was not a hard decision to join one of the world’s largest steelmaking groups with a large geographic reach, close connections to global customers, good growth prospects and an exciting future. I joined the company in February and worked with my predecessor, Kirby Adams, who I have known for some time through IISI (now the World Steel Association) and have always considered a friend. Together we pushed through the cost-saving and restructuring measures that have reversed the financial performance in Europe and set up a sound platform for renewed investment in our operational performance.

How are you communicating the Tata Steel brand in Europe…Will you retain the Corus brand? First, the Corus brand will gradually disappear altogether. We are introducing the Tata Steel name gradually over a period, in order to minimise cost and disruption of operations. Our employees in Europe, who recognise we are all stronger and growing together because of the takeover, have welcomed the switch to the Tata Steel brand enthusiastically. We have also spoken to all our customers.

We know that you will unveil a plan for Tata Steel Europe in three months. What direction will it take or what areas will it work on? It is clear we have to differentiate ourselves through our product offering and customer service and ensure operational excellence. This is why we are introducing our new operating model in Europe. This will optimise the way our manufacturing, supply chain, and sales and marketing functions work together.

Do you see any scope for further integration of the operations of Tata Steel India and Tata Steel Europe?

Absolutely. A lot of work on this has been going on since the takeover, and this will continue. The integration — the sharing of best practices, technological differentiation and the culture of continuous improvement— has been continuing right through the financial crisis. We will see over the next few years how Tata Steel in Europe will play a major part in optimising how the group takes advantage of its growth opportunities.