NatSteel to do without steel

NatSteel is selling its steel businesses in Singapore and the region, as well as its brandname, for some S$486 million to India's Tata Iron and Steel (see "NatSteel selling steel business, name to Tata Steel for S$486m").

It's no surprise to me, actually. The reality is that it is tough for a Singapore-based company to be dealing with a natural resource which the country doesn't produce. And while the local market has been a profitable one for a long time for NatSteel because of its monopoly status, the market is mature. Growth opportunities lie mainly in the region, especially China, for which it has relatively little competitive advantage.

The NatSteel management will now concentrate on its non-steel businesses, which include chemicals, engineering, construction, property and investment

In the meantime, of course, it should also find a new name for the company.