The performance of Tata Steel’s UK and Netherlands operations was impacted by weaker steel prices in the fiscal half-year through 30 September, Kallanish learns.
Tata Steel’s UK operations reported revenue of £600 million ($779m) during the second quarter of fiscal 2025, while Ebitda loss stood at £147m. Liquid steel production was 390,000t, while deliveries were at 630,000t.
On a half-year basis, revenue stood at £1,246m and Ebitda loss at £238m.
Tata Steel chief financial officer Koushik Chatterjee says: “Our performance in the UK and Netherlands was adversely impacted by the compression in steel spreads. Further, the UK was also weighed by the transitory nature of operations as the blast furnaces were safely decommissioned and steel stock was built up to operate downstream.”
Port Talbot ceased iron making on 30 September, and has since confirmed it has selected Tenova to supply the EAF for the site.
“We have completed public consultation on the planning application and anticipate commencing large scale site work around July 2025. During our transition to green steel, we will operate our downstream operations by sourcing substrate. This will help us sustain our significant market presence across steel end use segments in the UK,” Chatterjee added.
The group’s chief executive, T V Narendran, notes: “[Q2] also marked the closure of our blast furnaces in UK. We have signed the grant funding agreement with the UK government and are progressing on the proposed transition to green steel. We remain fully committed to supporting affected employees and have offered the best ever package of support in Tata Steel UK.”
The UK government confirmed in September Tata’s £500m in funding for the transformation.
Subdued steel prices also weighed on performance in the Netherlands. Revenue for the segment in Q2 was £1,300m and Ebitda was £22m. Liquid steel production was 1.66 million tonnes and deliveries at 1.5mt, which the company says increased on a year-on-year basis.
For H1, revenue was £2,644m and Ebitda was £65m.
Narendran adds: “We are undertaking pilot projects to avoid or convert captured carbon emissions.” Chatterjee meanwhile confirms: “We are engaged with the government on support for the decarbonisation of our operations.”
Carrie Bone UK
