Tata Steel Nederland Launches Transformation Plan to Boost Efficiency

17 Apr 2025 , 11:02 AM

Tata Steel Nederland (TSN), a unit of Tata Steel, has declared a significant transformation plan to turn its Netherlands factory into one of the most efficient and cost-competitive steel making facilities in Europe. The company plans to achieve annual cost benefits of €500 million from H2 FY26, which will grow to over €550 million by FY27.

These cost-saving initiatives will be achieved through a mix of operational and structural changes, such as:

• Reduction of about 1,600 staff from the current workforce of 12,000.
• Increasing the production output to achieve economies of scale.
• Product mix optimisation to specialise in high-margin and value-added products.
• Enhancing the efficiency of blast furnaces to facilitate improved fuel utilization and reduced emissions.
• Doubling the output and use of iron ore pellets to enhance cost and energy efficiency.

In spite of recent tariffs imposed by the United States, Tata Steel explained that the effect on its global operations is likely to be limited. Concurrently, Tata Steel UK (TSUK), another group subsidiary, is poised to reach cash breakeven in Q2 FY26, reflecting encouraging trends in its financial turnaround plan.