Tata Steel to cut 1,600 jobs at Netherlands facility under transformation plan

New Delhi: Tata Steel will cut 1,600 jobs in management and support roles at its Netherlands plant as part of its "transformation programme" to improve production efficiency, lower costs and increase margins, the Indian steel maker said on Wednesday.

The company on Wednesday submitted a Request for Advice to the Central Works Council to commence consultation on the transformation plan. It has also informed trade unions about the plan, Tata Steel said in a statement.

Tata Steel owns a steel manufacturing plant at IJmuiden in the Netherlands which produced an estimated 6.75 MTPA of liquid steel in FY25. The company has adopted a comprehensive transformation programme to maximise production efficiencies, lower fixed costs and optimise product mix and margins at the Netherlands facility.

Tata Steel Nederland (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 1,600 management and support function roles. Certain changes are also being made in the local management board of TSN,” Tata Steel said.

In FY25, the Netherlands operations 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, Tata Steel said.

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, it said.

Tata Steel remains committed to ensuring that its Netherlands operations achieve the potential of being one of the most competitive, successful and efficient in Europe.

TSN is also shifting towards green steel making technologies in the Netherlands.

The company has an ambitious green steel transition plan under which one of the two blast furnaces will be replaced by a new direct reduced iron (DRI) furnace and electric arc furnace (EAF) by the end of this decade, eliminating around 5 million tonnes per annum of Co2 emissions.

T. V. Narendran, CEO and Managing Director of Tata Steel and Chairman of the Supervisory Board of Tata Steel Nederland, said: "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."

Hans van den Berg, CEO of Tata Steel Nederland, stated "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."