Tata Steel says its transformation programme in Europe plans to improve the company’s run-rate Ebitda to £750 million ($899m) by March 2021 – equal to about 10% Ebitda margin.
About three-quarters of the performance uplift will come from productivity improvements, reduced bureaucracy and increased sales of higher-value steels, the steelmaker informed the European Works Council. Employment cost savings will make up the remainder.
Tata Steel in Europe chief executive Henrik Adam says: Steel has a bright future in Europe – enabling everything from low-carbon transportation and energy production to energy-efficient homes and fully-recyclable food packaging – and we want to be part of that future as an industry leader… Our future relies upon our ability to fund investments needed to raise the bar in innovation and carbon-efficient steelmaking.”
Last month Tata said it plans to cut 3,000 jobs, of which 1,600 will be in the Netherlands and 1,000 in the UK (see Kallanish passim). The company started on 27 November the employee consultation process with the European Works Council.