Tata Steel to shut down its chemical manufacturing business in India

Tata Steel will shut down chemical manufacturing operations in India by the end of this year and the company will be selling its operations in the country for scrap, the company said in a statement on Friday.

The statement said Tata has set up a subsidiary in the Indian market called Tata Chemical Products Limited.

The company said the decision is in the best interest of its shareholders, employees and the community, adding it has taken the necessary steps to protect the environment.

The Tata Steel unit will shut its chemical production operations in 2019, and the subsidiary will be sold for scrap by the company, the statement said.

The announcement comes after Tata Steel has faced scrutiny over its handling of a pollution disaster in Maharashtra in 2015 that killed more than 100 people.

In September last year, the Indian government said Tata had “failed to implement environmental controls and to comply with the applicable laws and regulations”.

The company also faced a court case in Maharashtra over its decision to build a plant to produce polyvinyl chloride (PVC) bottles in the state.

The court ruled that the company had failed to provide adequate information to regulators and had not adequately addressed concerns raised by local residents.