Tata Steel, the steelmaking giant, announced on Monday its decision to cut approximately 800 jobs at its IJmuiden plant in the Netherlands as part of its strategy to enhance profitability and navigate challenging market conditions.
Currently, Tata Steel employs around 9,200 individuals at its IJmuiden plant, situated on the Dutch coast west of Amsterdam.
Tata Steel, which recently secured funding in the UK, is now seeking financial assistance from the Netherlands government to advance its decarbonisation plans. Following the completion of the separation process between Tata Steel UK and Tata Steel Netherlands in October 2021, both operating as independent entities, Tata Steel CEO and MD TV Narendran stated that the company would submit a detailed decarbonisation proposal to the Dutch government.
The proposal seeks regulatory and financial support, and Tata Steel Netherlands has been collaborating closely with the Dutch government on this project, encompassing emission and health standards. The submission will be followed by discussions between the involved parties to finalise the conditions of the project.
While the company did not provide specific details on the decarbonisation plans for the Netherlands, Tata Steel aims to produce CO2-neutral steel in Europe by 2050. In September, Tata Steel and the UK government agreed on a joint investment plan of £1.25 billion for decarbonisation initiatives at the Port Talbot steel-making facility in Britain.
The UK government’s contribution to this plan is up to £500 million. Tata Steel, headquartered in India, owns the UK’s largest steelwork with a capacity of 5 million tonnes per annum at Port Talbot in South Wales, employing approximately 8,000 people across its operations in the country.
The company emphasised that the steel market has been under significant strain, prompting the need for structural competitiveness and profitability. The job cuts in IJmuiden are part of Tata Steel Netherlands’ broader efforts to adapt to market challenges and ensure long-term viability. The board of Tata Steel will consider the decarbonisation project for approval at an appropriate time.
The move underscores Tata Steel’s commitment to addressing the evolving dynamics of the steel industry and aligning its operations with sustainability goals.
