Tata Steel to transform operations in Netherlands, 1,600 jobs to disappear

Tata Steel said it is also working on measures that go beyond legal and permit requirements to improve environmental conditions for residents around the site.

Tata Steel Nederland will slash around 1,600 jobs in management and support functions as part of a sweeping transformation plan aimed at improving efficiency and preparing for a green steel future. The steelmaker has formally begun consultations with its Central Works Council and informed trade unions about the proposed reorganisation.

The restructuring comes at a time when the company is grappling with weak demand across Europe, geopolitical disruptions, and elevated energy costs that have hurt profitability. While production has recovered to near full capacity in FY25 at 6.75 million tonnes, Tata Steel said cost pressures continue to weigh on its financial performance.

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To address this, Tata Steel Nederland is rolling out a multi-pronged strategy to cut fixed costs, improve production efficiency, and realign its product portfolio. A key part of the overhaul includes simplifying the organisational structure—eliminating duplications, increasing accountability, and embracing automation. Changes to the local management board are also on the cards.

The company said it will engage in a comprehensive consultation process over the next few weeks to finalise the plan.

Beyond immediate cost rationalisation, Tata Steel Nederland is positioning itself for a long-term pivot to cleaner production. It plans to replace one of the two blast furnaces at its IJmuiden plant with a Direct Reduced Iron (DRI) unit and Electric Arc Furnace (EAF) by the end of this decade, which could cut CO₂ emissions by around 5 million tonnes annually.

The IJmuiden facility, with its deep-sea port and proximity to major customers, is considered one of Europe’s best-positioned plants for a transition to green steel, especially given access to offshore wind energy and existing infrastructure.

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Tata Steel said it is also working on measures that go beyond legal and permit requirements to improve environmental conditions for residents around the site. It is in active talks with the Dutch government for financial and policy support to fund this shift and expressed confidence in reaching a favourable outcome.

“This transformation is a building block towards the future,” said T. V. Narendran, CEO and MD of Tata Steel and Chairman of the Supervisory Board of Tata Steel Nederland. “We want to ensure Tata Steel Nederland regains its position as one of the most efficient steelmakers in Europe while taking definitive steps toward sustainability.”

The company believes these changes will strengthen its operating and financial profile, enabling it to invest in the future and remain competitive in a rapidly evolving industry.