Tata Steel Nederland, a subsidiary of Indian steelmaker Tata Steel, has announced that it is taking some measures to cut costs with immediate effect in the face of deteriorating European steel market conditions and with an aim to continue its green transition unabated. The company stated that the cost-saving measures that directly save money, include measures in procurement, sales and inventory management. In addition, training and business trips are significantly reduced.
Looking at the current conditions that have negatively affected the company, Tata Steel Nederland noted that there is significant overcapacity in the European market, partly caused by steel imports from China, leading to lower steel prices. In addition, the automotive industry is under pressure which affects Tata Steel directly as well, while the company’s competitive position is also under pressure due to the high costs incurred by Tata Steel Nederland, such as high energy costs.