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

Mumbai, April 09, 2025

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

Mumbai, April 9, 2025: 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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.

  • 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."

Disclaimer

Statements in this press release describing the Company’s performance may be “forward-looking statements” within the meaning of applicable securities laws and regulations. Actual results may differ materially from those directly or indirectly expressed, inferred or implied. Important factors that could make a difference to the Company’s operations include, among others, economic conditions affecting demand/ supply and price conditions in the domestic and overseas markets in which the Company operates, changes in or due to the environment, Government regulations, laws, statutes, judicial pronouncements and/ or other incidental factors.

For queries and information

Sarvesh Kumar,
Chief Corporate Communications, Tata Steel,
E-mail : sarvesh.kumar@tatasteel.com

About Tata Steel

  • Tata Steel group is among the top global steel companies with an annual crude steel capacity of 35 million tonnes per annum.
  • It is one of the world's most geographically diversified steel producers, with operations and commercial presence across the world.
  • The group recorded a consolidated turnover of around US$27.7 billion in the financial year ending March 31, 2024.
  • A Great Place to Work-CertifiedTM organisation, Tata Steel Limited, together with its subsidiaries, associates, and joint ventures, is spread across five continents with an employee base of over 78,000.
  • Tata Steel has announced its major sustainability objectives including Net Zero by 2045.
  • The Company has been on a multi-year digital-enabled business transformation journey intending to be the leader in ‘Digital Steel making’. The Company has received the World Economic Forum’s Global Lighthouse recognition for its Jamshedpur, Kalinganagar, and IJmuiden Plants. Tata Steel has also been recognised with the ‘Digital Enterprise of India – Steel’ Award 2024 by Economic Times CIO.
  • The Company has been recognised with the World Economic Forum’s Global Diversity Equity & Inclusion Lighthouse 2023
  • The Company has been a part of the DJSI Emerging Markets Index since 2012 and has been consistently ranked among the top 10 steel companies in the DJSI Corporate Sustainability Assessment since 2016.
  • Tata Steel’s Jamshedpur Plant is India’s first site to receive ResponsibleSteelTM Certification. Subsequently, its Kalinganagar and Meramandali plants have also received the certification. In India, Tata Steel now has more than 90% of its steel production from ResponsibleSteelTM certified sites.
  • Received Prime Minister’s Trophy for the best performing integrated steel plant for 2016-17, 2024 Steel Sustainability Champion recognition from worldsteel for seven years in a row, 2023 Climate Change Leadership Award by CDP, Top performer in Iron and Steel sector in Dun & Bradstreet's India's top 500 companies 2022, Ranked as the 2024 most valuable Mining and Metals brand in India by Brand Finance, ‘Most Ethical Company’ award 2021 from Ethisphere Institute, and ‘Best Corporate for Promotion of Sports’ recognition at the Sportstar Aces Awards 2024.
  • Received the 2023 Global ERM (Enterprise Risk Management) Award of Distinction at the RIMS ERM Conference 2023, ‘Masters of Risk’ - Metals & Mining Sector recognition at The India Risk Management Awards for the eighth consecutive year, and ICSI Business Responsibility and Sustainability Award 2023 for its first Business Responsibility and Sustainability Report (BRSR), Excellence in Financial Reporting FY20 from ICAI, among several others.

 

Photographs: Management and Plant facilities

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Website: www.tatasteel.com and www.wealsomaketomorrow.com

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