NEW DELHI - India's Tata Steel, one of the world's biggest steelmakers, Monday announced a $1.6 billion asset writedown, citing slumping demand in its main European market.
Tata Steel (IW 1000/195), which bought Anglo-Dutch steel giant Corus for $13.7 billion in 2007, has been struggling to improve its performance in Europe, which accounts for about two-thirds of sales and production for the steelmaker.
"The company expects a non-cash writedown of the goodwill and assets in the consolidated financial statements for the year ended March 31, 2013, of around $1.6 billion," the company said in a statement.
The announcement comes as the global steel industry faces an uncertain outlook and slowing growth due to the eurozone debt crisis, while India's economy has weakened sharply.
Tata Steel said it was taking the writedown "due to weak economic and market conditions in Europe."
Copyright Agence France-Presse, 2013