(ET)
Tata Steel‘s Dutch subsidiary plans to cut around 1,600 jobs in management and support functions as part of a sweeping transformation plan aimed at improving efficiency and preparing for a green steel future.
Tata Steel Nederland has begun formal talks with its Central Works Council and informed trade unions about the proposed reorganisation, parent Tata Steel said in a regulatory filing on Wednesday. The company has filed a formal Request for Advice with the Netherlands’ Central Works Council to initiate consultations on the proposed changes.
“Tata Steel remains committed to ensuring that its Netherlands operations achieve their potential of being one of the most competitive, successful and efficient in Europe,” Tata Steel said, adding to achieve this, the Dutch unit has adopted a comprehensive transformation programme built on a multi-pronged approach of maximising production efficiencies, lowering fixed costs and optimising product mix and margins.
The IJmuiden plant-with direct access to a deep-sea port and key European customers-has nearly recovered to its full production capacity of 6.75 million tonnes per annum (mtpa) in FY25, following delays due to a blast furnace relining in FY24. However, prevailing challenging demand conditions in Europe, driven by geopolitical developments, trade and supply chain disruptions, and escalating energy costs have affected operating costs and financial performance, according to Tata Steel.
It emphasised that the restructuring is necessary to restore financial performance and support future investments, particularly as it gears up for a ₹5 billion green steel initiative. This includes replacing one of the two blast furnaces with a Direct Reduced Iron (DRI) furnace and Electric Arc Furnace (EAF) by 2030, which is expected to reduce carbon emissions by around 5 million tonnes per year.
“Together with my colleagues in Tata Steel and Tata Steel Nederland, we will ensure that Tata Steel Nederland returns to its pre-eminent position as one of the most efficient steel making sites in Europe, producing high-quality steel for our customers,” said TV Narendran, CEO and MD of Tata Steel and chairman of the supervisory board of Tata Steel Nederland.
“We are working closely with the Dutch government and other stakeholders and are in constructive discussions about our joint investments in the Green Steel plan going forward. This transformation is a building block towards this future where we ensure that TSN has the required robust operating and financial profile, enabling it to move towards its future as one of the best and most sustainable steel companies in Europe,” said Narendran.
Low exposure to the US market
Amid worries over the overreaching impact of US President Donald Trump‘s tariff policies, Tata Steel chief financial officer Koushik Chatterjee on Wednesday said the Indian operations and deliveries have no direct sales exposure to the US market.
The company’s US volume exposure stands at 1,000-2,000 tonnes of duct and galvanised wires, and 10,000-15,000 tonnes in select speciality steel products on an annualised basis, he told analysts during a call.
