London
Following an interview with the group’s European chief executive, Henrik Adam, Tata confirmed it was planning to announce jobcuts across the European business, which employs around 20,000people.
No numbers have been made public. Indian-owned Tata Steel, which launched a transformation programme in June to strengthen its European business, has operations including steel-making in the Netherlands and Wales and downstream operations across Europe.
There will be no plant closures but the aim is to shield thecompany against the “huge number of challenges” it faces, the company said.
“We are working hard on our plans to be operationally cash positive,” Adam said, adding that the company was aiming for “a fundamental change”. A company spokesman confirmed Adam’s comments originally made in the media report.
Steel making in Europe has come under strain from international competition and high energy costs, putting large numbers of well-paid jobs under threat.
European steel-makers blame China for the extent of a surplus in the market, but the world’s biggest steelmaker says it has made its own deep cuts to capacity. Britain last week announced that Chinese steelmaker Jingye has signed a provisional deal to buy British Steel, which went into compulsory liquidation in May.
The agreement is politically resonant ahead of British elections as job opportunities have become a major issue. If confirmed, the rescue could save thousands of jobs.
ArcelorMittal, the world’s biggest steelmaker, has idled a series of plants across Europe.
In an emailed statement on Monday, Tata Steel said challenging market conditions had been made “worse by the use of Europe as a dumping ground for the world’s excess capacity.”
Visit news.dtnext.in to explore our interactive epaper!
Download the DT Next app for more exciting features!
Click here for iOS
Click here for Android