Leng Brings Good Chemistry To Rio Tinto

Tata steel exec with history of raising margins will be chairman of miner under pressure.Known for his "good vibes" and for delivering high margins to the companies he has worked for, Jim Leng, the current Tata Steel deputy chairman, has been appointed chairman of miner Rio Tinto.
The company said Leng, who has a vast experience in the specialty chemicals sector, would assume his tasks as chairman in April when the current chairman, Paul Skinner, retires.
His appointment was well regarded among analysts who recalled his years as chief executive of Laporte, the specialty chemicals company in the 1990s. "In the chemicals sector, Leng was recognized as one best chief executives of the time because he brought high margins, good growth rate and had a record of bringing good products," said Ian Armstrong, an equity analyst with Brewin Dolphin in London.
"He came across as a very good chief executive. He was very much behind the [launch of new] products and very hands on," said Armstrong, who used to cover Laporte when Leng was its chairman.
Leng will have to deal with a fall in iron-ore prices as the global recession has undermined production in China and other developing economies. In October, the mining giant warned about the effects of slowing Chinese demand on its business and pondered postponing the sale of $10 billion in assets that would go toward debt reduction. (See "Rio Tinto's Fortunes Tied To China's Deceleration.")
Ever since Corus Group was acquired by Tata in 2007, Leng has been deputy chairman of India's Tata Steel. He is also chairman of Tata Steel Europe, a position he has held since 2003.
"I am absolutely delighted to be joining Rio Tinto and taking up the chairmanship. Rio Tinto has a superb set of assets and strong prospects," Leng said.