Tata Steel Group's plant capacity will grow to 33.5Mt/y by 2014 following the 2.9Mt/y expansion of the Jamshedpur plant and commissioning of the first phase of the 3Mt/y steelplant in Odisha, said Chairman Ratan Tata.

Tata said the ongoing 2.9Mt/y expansion in Jamshedpur is expected to go live this financial year, taking the company's production capacity in India to 9.7Mt/y.

With its plants in UK, Holland and Singapore, Tata Steel should have a global steel capacity of 33.5Mt by 2014, he said in the company's annual report for 2011-12.

Tata Steel's India operations, he said, will continue to remain strong on account of robust demand in the country.

The Company’s European operations would "continue to be under enormous stress for the next year or two until the Western European economy recovers", he added.

In 2011-12, Tata Steel produced 14.27 in Europe, down from 14.80Mt in the previous year.

"The unprecedented rise in iron ore and coking coal prices coupled with the acute decline in market demand will continue to negatively impact company's European operations," said, Ratan Tata, adding that the company has already started restructuring and capacity rationalising process to reduce costs.

The European operations of the company were particularly impacted in the second and the third quarter of the last financial year due to high raw material costs.