Tata Steel has secured a major contract from Siemens Wind Power to supply 25,000 tonne of high-quality profiled steel plate for wind towers. The order, according to the company's press release filed with the Bombay Stock Exchange (BSE), is the largest to date for the steel company's dedicated wind tower hub in Scunthorpe, England.
The deal is estimated to be worth an eight figure sum in pounds and establishes Tata Steel as a key supplier to Siemens Wind Power, the release added. The exact amount of the deal has not been mentioned in the release submitted to BSE.
The filing also said that Tata Steel will deliver 25,000 tonne of profiled plate between April and September this year.
The steel will be used to build about 150 onshore wind turbine towers. Tata Steel has already supplied Siemens Wind Power with 6,000 tonne of steel plate for similar developments in the UK and Europe.
Phil Knowles, Tata Steel commercial manager for power generation said in the press release, "Demand for steel in the renewable energy sector will continue to grow, and we are ideally placed to help our customers tap into this improtant opportunity. The agreement we have negotiated with Siemens Wind Power is a strategic customer alliance that will help in our objective to be a key supplier in the offshore wind power market."
"Wind turbines represent an efficient and reliable option in terms of renewable energy sources. Siemens Wind Power already has an exceptional track record in this area and we are confident this supply agreement with Tata Steel will see us continue to enhance both companies' reputation for operational excellence," added Claus Loenvig Menne, global commodity manager tower raw materials, Siemens Wind Power.
Tata Steel's wind tower hub in Scunthorpe was established in 2010 to process and distribute steel plate to manufacturers of wind turbine towers. It can deliver up to 200,000 tonne annually, reducing cust9omers' processing time while ensuring full traceability.
It is anticipated the arrangement with Siemens Wind Power will open up further opportunities for Tata Steel to supply other steel products such as hot rolled coil and hollow sections, which are also used in wind turbines.
In the afternoon trading session today, Tata Steel shares were trading at Rs 432.85 on the Bombay Stock Exchange, up 1.88 per cent from the previous day's close.