Tata Steel plans to cut 1,600 jobs in the Netherlands as part of a transformation programme to ‘future-proof’ its Dutch operations.
The company has submitted a proposal to the central works council in this direction and also informed trade unions about its plans. The management will kick off a comprehensive consultative process with the stakeholders on the proposed changes. The company employs about 9,000 people at Ijmuiden, where the plant is located, and 12,000 under Tata Steel Nederland.
The company pointed to the challenging demand conditions in Europe, driven by geo-political developments, trade and supply chain disruptions and escalating energy costs which have affected the operating costs and financial performance.
This is despite the fact that the Netherlands operations recovered with liquid steel production volumes near capacity at 6.75 million tonnes in FY25.
The Tatas are planning to undertake a decarbonisation journey at Ijmuiden and are in discussions with the Dutch government for a financial package. In the last fiscal, Tata Steel managed to undertake the arduous task of restructuring UK operations, closing down the blast furnace and cutting down 2,800 jobs. After securing a £500 million grant, Tata Steel is now in the process of setting up a 3 mt electric arc furnace having low carbon footprint with an investment of £1.25 billion.
Tata Steel Nederland also 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.
The company argued 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, it added.
In a statement, T.V. Narendran, managing director & CEO of Tata Steel Ltd, said the company would ensure that Tata Steel Nederland returns to its pre-eminent position as one of the most efficient steel making sites in Europe.
“We are working with the Dutch government and other stakeholders about our joint investments in the green steel plan. 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 firms in Europe,” Narendran said.
Hans van den Berg, CEO of Tata Steel Nederland, added: “We are taking a necessary step towards a sustainable and future-proof steel company.”