Tata Steel cuts 800 jobs in the Netherlands to increase profitability

The Dutch division of Tata Steel on Monday said it would cut around 800 jobs at its IJmuiden plant in an effort to increase profitability.

 

Tata currently employs around 9,200 people in IJmuiden, on the Dutch coast around 30 km (19 miles) west of Amsterdam.

“Despite all efforts by Tata Steel to improve its market position and reduce costs, more needs to be done,” the company said in a statement.

“Also in light of the transition to a cleaner company, in which significant investments are and will be made.” The reorganisation would mainly hit managerial and support staff, and was necessary to keep a competitive edge as the Dutch steel plant moves to more sustainable production methods.

Tata’s steel factory is responsible for around 7% of the total CO2 emissions of the Netherlands, making it the biggest single polluter in the country.

The company is working with the Dutch government on plans to switch to greener ways of making steel, but has not yet reached an agreement on the support it says it would need.

In its latest plan, Tata said it would replace production based on coal and iron ore with ovens running on metal scrap and hydrogen by 2030, without providing financial details.