Tata Steel suffers huge quarterly loss due to intervention in UK

Tata Steel suffered a huge loss in the last quarter. The Indian Steel Group, which among other things owns the blast furnace complex near Ijmuiden, has written off a significant value on its British plant near Port Talbot. Due to the greening plans for this complex, many existing facilities have become much less valuable.

Due to plans to green the steel plant, many of the current facilities, including blast furnaces and coke plants, will soon no longer be needed in the Welsh coastal town. It will be replaced by largely electrical installations for steel production.

Tata Steel has written off hundreds of millions of euros in assets in the UK. The group is also allocating funds for reorganization in its British division. This contributed to a net loss of 65.1 billion rupees, equivalent to about 741.5 million euros.

British media wrote that making the steel plant more sustainable would also lead to significant job losses. Tata Steel is reportedly set to announce 3,000 job cuts in the UK as the new plant requires a smaller workforce. But at the last minute, the press announcement, which was scheduled to take place after the board meeting, was postponed.

Tata Steel also stated that it would “very soon” submit a proposal to the Dutch government to make the steel plant near IJmuiden more sustainable. In addition to obtaining permission from regulators, the group also aims to obtain significant financial support to reduce its emissions of carbon dioxide and other harmful substances in the Netherlands.