Tata Steel Europe has outlined its long-awaited restructuring programme, including the reduction of up to 3,000 jobs across Europe, the firm says in a statement seen by Kallanish.
The new programme is aimed at securing positive cash flow for the company from the financial year ending March 2021. “A transformation is needed to mitigate the current structural and cyclical headwinds and create the foundation for the company’s future success,” Tata Steel Europe says. “Stagnant EU steel demand and global overcapacity have been compounded by trade conflicts which have turned the European market into a dumping ground for the world’s excess steel capacity.”
“Together with a significant increase in the cost of emission allowances, this has created an urgent need for improvements to the company’s financial performance,” the company adds.
The plan was anticipated earlier this year as a means of securing the European business following the cancellation of the proposed merger between Tata Steel Europe and thyssenkrupp.
In the plan outlined this week the company included the proposal to cut some 3,000 – mainly office-based – jobs across Europe. Also included is the target to increase sales of high-value added products, and the reduction of procurement costs through better cooperation with other Tata Steel group companies.
UK-based GMB, the union for steel workers, says the news of job cuts is “…disappointing” and that it is currently seeking confirmation from the company that the Port Talbot mill will not be impacted. In an interview to the UK press Tata Steel Europe ceo Henrik Adam confirmed that the operation of Port Talbot will not be reduced as part of the restructuring programme.