Tata Steel has today announced a major five-year improvement programme for its IJmuiden steelworks in the Netherlands that is designed to sustain the plant’s potential to be a world-class steelmaker. It is intended that this programme will be accompanied by substantial investment that may total around EUR 800 million over the five-year period.
The improvement programme will focus on three goals: further enhancing product quality, improving plant reliability and reducing costs. The programme is balanced in its structure so as to achieve both cost reductions and growth through investment. As a consequence, IJmuiden’s annual effective capacity will rise by 2015-16 from 7.2 million to 7.7 million tonnes of liquid steel and the total number of full-time jobs at the plant will be reduced by about 1,000 in the next four years.
These and other objectives will be achieved by focusing on a range of activities such as environmental performance, maintenance and optimisation of installations, further enhancing product quality, and energy efficiency. There will also be investment in staff training and development. The programme clarifies the priorities that are to be addressed in order to establish a platform for continuity and long-term growth at IJmuiden. It will also better enable the plant to meet the demands of the current complex market situation.
Karl-Ulrich Köhler, MD & CEO of Tata Steel in Europe, said: “The IJmuiden works enjoys the great advantages of an ideal location – with its own port for bringing in raw materials and close proximity to the market – excellent lay-out, an ability to be flexible in the use of raw materials, and a high level of technology and craftsmanship. Today’s improvement programme aims at significantly strengthening IJmuiden’s position in the steel industry, helping it realise its potential as a world-class steel plant.”
The improvement programme was shared with both the trade unions and the Central Works Council (CWC) today. The intention as far as possible is that there should be no compulsory redundancies.
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About Tata Steel in Europe
The European operations of Tata Steel (formerly known as Corus) comprise Europe's second largest steel producer. With main steelmaking operations in the UK and the Netherlands, it supplies steel and related services to the construction, automotive, packaging, lifting and excavating and other demanding markets worldwide.
Tata Steel is one of the world’s top ten steel producers. The combined group has an aggregate crude steel capacity of more than 28 million tonnes and approximately 80,000 employees across four continents.