Tata Steel Europe separation advances, management nominations expected

Following board approval, Tata Steel Europe has submitted its plans for separation into Mainland European and UK businesses for national consultation with the various employee representative bodies. The firm says it wants to complete the separation as soon as possible after successful consultation.

“Separating into Tata Steel Netherlands (TSN) and Tata Steel UK (TSUK) will enable both businesses to pursue different strategic paths and give them greater agility and focus, while still benefiting from the buying and selling power of a large company,” Tata Steel Europe chief executive Henrik Adam told employees on Friday. “In the meantime, we are also continuing conversations with both the Dutch and UK governments to seek support for our transition to low-carbon steelmaking, a vital part of securing a long-term sustainable future for both steelmaking sites.”

The firm anticipates a small number of senior management job reductions, but does not expect other job losses as a direct result of this separation process. For those in cross-border roles, in particular, there may be some change in activity and reporting lines but for many employees there will be little change to their day-to-day roles, Adam pointed out.

Nominations for the management teams in the new TSN and TSUK organisations are expected to be announced in the coming weeks. The teams will be accountable to their respective boards and to the parent company, Tata Steel Limited.

“There will continue to be areas of coordination for TSN and TSUK, especially as they continue to present a single face and voice to customers via, for example, a common product offering and pricing policy,” Adam commented in a letter to employees seen by Kallanish. “The separation will mean the creation of two vibrant new steelmaking businesses, each with their own strategies for future success and sustainability, but still with the support and leadership of the parent company.”

Adam Smith Germany