Tata Steel se concentra na reestruturação de ativos na Europa

Tata Steel focuses on asset restructuring in Europe

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The first phase of decarbonization in the Netherlands involves a transition from coke production to DRI

Tata Steel's Dutch operations are expected to grow financially next year and the company's UK operations are expected to improve following the completion of restructuring measures. About this in an interview TV Narendran, CEO of the company, spoke to The Hindu Business Line.

According to him, financial performance in the Netherlands has been unsatisfactory in recent quarters for a number of reasons. However, the lining of one of the two blast furnaces at the IJmuiden unit has been completed and the unit is expected to return to operation next week.

As for receiving a decarbonization subsidy from the Dutch government, according to TV Narendran, the outlines and main provisions of the agreement are already ready and are in the approval phase. It is also necessary to go through a consultation process before signing any final documents. The company must interact with the unions and take their proposals into account, which is what is happening.

As the CEO of Tata Steel said, in the first phase the group intends to close a blast furnace in the Netherlands and switch from coke production to gas-based DRI production and an electric arc furnace.

Narendran TV has not yet announced the level of investment that will be required for the transition.

“We are not talking about it for now, as the matter is being discussed with the Dutch government, and once we reach a certain stage, as we did with the UK government, then we will announce the details,” he said.

The company's CEO also believes that it is too early to comment on possible job cuts in the country.

“The Netherlands is already undergoing a restructuring that was announced two months ago. Around 800 jobs have already been cut, but this is not enough. Ultimately, during the transition period we will discuss this issue,” explained Narendran TV.

The capacity of the Tata Steel Netherlands plant is estimated at 7 million tonnes of steel per year. The company plans to replace both blast furnaces with DRI/EAF technology by 2030.

At the same time, according to Narendran TV, it will take 18 months to complete the restructuring in the United Kingdom.

It is worth remembering that Tata Steel will close two blast furnaces in the United Kingdom by the end of this year. As a result, 2,800 jobs will be lost, 2,500 of them in the next 18 months. The furnace closure is part of the company's plan to refocus the UK steel business by switching to electric arc furnaces.

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