Tata Steel today (11 December) presented to its European Works Council further details of plans to build a stronger and more sustainable business.
The transformation programme includes measures to improve the performance of the business, helping it to become more sustainable and enabling investments necessary to secure its long-term future.
The transformation aims to improve the company’s run-rate EBITDA to £750 million by March 2021 (equal to about 10% EBITDA margin). About three-quarters of the performance uplift will come from productivity improvements, reduced bureaucracy and increased sales of higher-value steels, with employment cost savings making up the remainder.
Henrik Adam, CEO of Tata Steel in Europe, said: “Steel has a bright future in Europe – enabling everything from low-carbon transportation and energy production to energy-efficient homes and fully-recyclable food packaging – and we want to be part of that future as an industry leader.
“Today we presented to our European employee representatives further details of the plans to become a steelmaker equipped to meet the higher demands of society and our customers. Our future relies upon our ability to fund investments needed to raise the bar in innovation and carbon-efficient steelmaking. I’m convinced we can create this future together and in a responsible way.”
The company will continue to engage with various stakeholders on the transformation proposals. It will also continue to inform and involve its employee representatives, employees and other stakeholders on a European and national level during the process.
For further information contact:
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About Tata Steel’s European operations
Tata Steel is one of Europe's leading steel producers, with steelmaking in the Netherlands and the UK, and manufacturing plants across Europe. The company supplies high-quality steel products to the most demanding markets, including construction and infrastructure, automotive, packaging and engineering. Tata Steel works with customers to develop new steel products which give them a competitive edge. The Tata Steel group is among the top global steel companies with an annual crude steel capacity of 33 million tonnes. It is one of the world's most geographically-diversified steel producers, with operations and a commercial presence across the world.