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Released November 20, 2023 | GALWAY, IRELAND
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Written by Martin Lynch, European News Editor for Industrial Info (Galway, Ireland)--Tata Steel (Velsen-Noord, Netherlands) has announced plans to cut 800 staff from its Dutch steelmaking operations at IJmuiden near Amsterdam.
The company said that the steel market has been in "dire straits for some time" and that in order for the company to remain "structurally competitive and profitable now and in the future Tata Steel Netherlands is taking significant measures," including a reduction of 800 jobs in IJmuiden, where it employs around 9,200 people. The decision comes shortly after the company postponed an announcement on planned job cuts of up to 3,000 at the U.K.'s largest steelworks in Port Talbot, Wales. For additional information, see November 13, 2023, article - Tata Steel Postpones U.K. Job Cuts Announcement.
The cull will impact 500 full-time employees, mainly in management, staff and support positions, alongside 300 temporary workers. It said that there are no plans to change the current five-shift system but admitted that "forced redundancies cannot be ruled out and the company will discuss a social plan with the unions". The company is working on a number of projects to lower the emissions and introduce cleaner steelmaking processes at the IJmuiden plant, which is the largest single polluter in the Netherlands, accounting for around 7% of the country's total carbon dioxide (CO2) emissions. It is unclear how the cuts may impact future projects. Industrial Info is tracking 13 projects at IJmuiden worth more than US$700 million in investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.
Tata stated: "Despite all efforts by Tata Steel to improve its market position and reduce costs, more is needed and the company also needs to further reduce personnel costs. Reducing the number of jobs is a difficult decision that can have a major personal impact on employees and their families. The measures that are being taken are also in the interest of the transformation to a cleaner, greener and more circular steel company. Substantial investments are being made in this now and in the coming years. It is therefore important to have and maintain a strong competitive position and to be agile enough to respond to rapidly changing circumstances and new developments. Especially when countries are increasingly pursuing a more active industrial policy, which also disrupts a level playing field in Europe."
In recent weeks, Tata applied to the Dutch government for a financial aid package to help decarbonize its steel operations. No information on how much is being sought has been revealed, but Tata succeeded in securing a similar aid package for its U.K. operations in September when it received a £500 million (US$620 million) rescue package from the government. At that time, it warned that it might still have to cut 3,000 jobs to survive. It claimed that without that financial support, 8,000 jobs across Tata's U.K. operations--4,000 of which are at Port Talbot--were at risk, which would have further impacted around 12,500 jobs in the upstream supply chain. For additional information, see September 20, 2023, article - Tata Steel U.K. Gets $620 Million Rescue Package.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
The company said that the steel market has been in "dire straits for some time" and that in order for the company to remain "structurally competitive and profitable now and in the future Tata Steel Netherlands is taking significant measures," including a reduction of 800 jobs in IJmuiden, where it employs around 9,200 people. The decision comes shortly after the company postponed an announcement on planned job cuts of up to 3,000 at the U.K.'s largest steelworks in Port Talbot, Wales. For additional information, see November 13, 2023, article - Tata Steel Postpones U.K. Job Cuts Announcement.
The cull will impact 500 full-time employees, mainly in management, staff and support positions, alongside 300 temporary workers. It said that there are no plans to change the current five-shift system but admitted that "forced redundancies cannot be ruled out and the company will discuss a social plan with the unions". The company is working on a number of projects to lower the emissions and introduce cleaner steelmaking processes at the IJmuiden plant, which is the largest single polluter in the Netherlands, accounting for around 7% of the country's total carbon dioxide (CO2) emissions. It is unclear how the cuts may impact future projects. Industrial Info is tracking 13 projects at IJmuiden worth more than US$700 million in investment. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.
Tata stated: "Despite all efforts by Tata Steel to improve its market position and reduce costs, more is needed and the company also needs to further reduce personnel costs. Reducing the number of jobs is a difficult decision that can have a major personal impact on employees and their families. The measures that are being taken are also in the interest of the transformation to a cleaner, greener and more circular steel company. Substantial investments are being made in this now and in the coming years. It is therefore important to have and maintain a strong competitive position and to be agile enough to respond to rapidly changing circumstances and new developments. Especially when countries are increasingly pursuing a more active industrial policy, which also disrupts a level playing field in Europe."
In recent weeks, Tata applied to the Dutch government for a financial aid package to help decarbonize its steel operations. No information on how much is being sought has been revealed, but Tata succeeded in securing a similar aid package for its U.K. operations in September when it received a £500 million (US$620 million) rescue package from the government. At that time, it warned that it might still have to cut 3,000 jobs to survive. It claimed that without that financial support, 8,000 jobs across Tata's U.K. operations--4,000 of which are at Port Talbot--were at risk, which would have further impacted around 12,500 jobs in the upstream supply chain. For additional information, see September 20, 2023, article - Tata Steel U.K. Gets $620 Million Rescue Package.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
