Tata Steel Nederland announces major transformation programme to  enhance competitiveness for a sustainable future

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Chandigarh: Tata Steel Nederland has today filed a Request for Advice to the Central Works Council to commence consultation on certain aspects of this transformation programme.

 1.    Tata Steel’s steel making operations at IJmuiden in the Netherlands constitute one of the most strategically located steel plants in Europe with its own deep-sea port and proximity to key customers. The access to offshore wind energy, transmission and pipeline infrastructure will enable the transition to competitive green steel making for which intense engagement is ongoing with all stakeholders including the Dutch Government.

 2.    In FY2025, the Netherlands operations have recovered with liquid steel production volumes near capacity at 6.75 MTPA, after the delayed reline of one of the blast furnaces had impacted production in FY2024. However, the challenging demand conditions in Europe driven by geo-political developments, trade and supply chain disruptions and escalating energy costs have affected the operating costs and financial performance.

 3.    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. In order to achieve this, Tata Steel Nederland (TSN) 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.

 4.    TSN  will require a new and more effective organisational structure characterised by more accountability, standardisation, automation and elimination of duplication. This reorganisation is expected to lead to a loss of ~1600 management and support function roles. Certain changes are also being made in the local management board of TSN.

 5.    Today, a Request for Advice for the transformation plan has been submitted to the Central Works Council and trade unions have been informed. Over the following weeks, an effective and comprehensive consultation process will be run on the proposed changes.

 6.    Tata Steel Nederland has an ambitious green steel transition plan under which one of the two blast furnaces will be replaced by a new Direct Reduced Iron furnace and Electric Arc Furnace by the end of this decade, eliminating around ~5 million tonnes per annum of CO2 emissions. It is also proposed to undertake several actions beyond permit levels and legal requirements to improve the quality of the environment for residential communities around IJmuiden. Tata Steel is optimistic it will achieve a positive outcome on the discussions with the Netherlands government for requisite funding and policy support in the coming months. The transformation programme announced today will provide TSN the ability to make the necessary investments in its future.

T. V. Narendran, (CEO and Managing Director of Tata Steel and Chairman of the Supervisory Board of Tata Steel Nederland), said: “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. 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.”

 Hans van den Berg, CEO of Tata Steel Nederland, adds: “With today’s announcement, we are taking a necessary step towards a sustainable and future-proof the steel company. As the Board of Directors of TSN, we are well aware that this intended restructuring of our organization may have a significant impact on our people, and we are committed to working closely with all stakeholders to navigate this difficult path. We have worked tirelessly in the past period to reduce costs and I am confident that we can once again deliver the changes required for a sustainable future- one where we achieve benchmark levels of profitability under all market conditions.”