About 20 per cent of Tata Steel’s workforce at its plant in Ijmuiden, in the Netherlands, will be laid off. That means 1,600 employees will be let go, primarily managerial and support staff. Changes are expected in the local management board of Tata Steel Nederland (TSN) too.
Tata Steel’s Dutch subsidiary has reportedly filed a Request for Advice with the Central Works Council to commence its transformation and reorganisation plan, aimed at sustainability and long-term financial stability.
Amid rising energy costs and stiff competition from low-priced imports from China, the Dutch subsidiary of Tata Steel posted losses to the tune of $613 million for the financial year ending 31March, say media reports. Adding to the challenges, import tariffs in the US are being increased. Demand in Europe is not looking good either given the geopolitical and trade conditions and escalating cost of energy. All this has spiked the operating costs and financial condition of the company, as revealed in its filing.
However, the unit is on the path to recovery in the Netherlands with liquid steel production almost touching full capacity in the financial year 2025.
The IJmuiden plant is looking at a green transition, under its Green Steel Plan. Leveraging of offshore wind energy and setting up of relevant infrastructure required to ensure long-term efficiency and sustainability in steel production are being discussed with the Dutch government.
Source – https://www.hrkatha.com/news/tata-steels-plant-in-the-netherlands-to-let-go-1600-employees/