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The company has filed a formal Request for Advice with the Netherlands’ Central Works Council to initiate consultations on the proposed changes. The transformation includes a reorganisation of Tata Steel’s Netherlands operations to introduce a leaner, more accountable structure focused on automation, standardisation, and efficiency. Changes are also being made to the local management board of Tata Steel Nederland as part of this revamp.
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 reline in FY24. However, Tata Steel Nederland continues to face margin pressure from weak European demand, supply chain disruptions, and surging energy costs.
Also Read: Tata Steel Q4 Update: India deliveries hit record, but production dips sequentially
Tata Steel said 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, a move expected to reduce carbon emissions by around 5 million tonnes per year.
The company is currently in talks with the Dutch government regarding funding and regulatory support for its decarbonisation plans. Tata Steel also intends to address the environmental concerns of nearby residential communities. The consultation process will continue over the coming weeks with the Works Council and trade unions, the company said.
Shares of Tata Steel Ltd ended at ₹127.20, down by ₹3.00, or 2.30%, on the BSE.
Also Read: Tata Stocks Crash: Six Nifty 50 constituents shed over ₹1 lakh crore in market capitalisation
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