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Tata Steel has embarked on transformation journey by adopting advanced manufacturing techniques and this will lead to unavoidable job losses, especially in the UK.
N Chandrasekaran, Executive Chairman, Tata Steel said the company recognises that the transformation is difficult from an execution perspective and also difficult for some of the employees who will not have a future with Tata Steel, especially in the UK.
The company is working with the government and Unions to make sure that the company do sufficient level of investment to support them in their skill development so they can have a better future, he said at the company’s annual general meeting on Monday.
Tata Steel is in the process of the first blast furnace at the Port Talbot plant in UK followed by the second furnace in September. This will lead to 2,800 job losses which is resisted by employees Union. The newly elected Labour government has linked 500 million pound grant for Tata Steel UK energy transition to preserving job losses.
Chandrasekaran said Tata Steel strategy for its UK plants remains unchanged even though the new government has come to power.
Last September, the company announced the proposal to invest £1.25 billion in a new Electric Arc Furnace to be commissioned in 2027 at Port Talbot. This project is linked to the final sign-off, of the £500 million grant by the UK government, he said.
Turning to operations in the Netherlands, Tata Steel is in discussions with the Dutch Government for financial and policy-level support on a major decarbonization plan to replace one of the two blast furnaces, said Chandrasekaran.
In India, he said the company’s Kalinganagar phase II expansion is expected to go on stream in by September and take the overall production capacity of hot metal to 8 MTPA.
“We will also look to increase Kalinganagar’s capacity to 13 MTPA in the future,” he said.
Production capacity at Neelachal Ispat Nigam, which is part of the Kalinganagar eco-system will be ramped up from 1 MTPA to 5.5 MTPA over the next coming years.
In the long products segment, the 0.75 MTPA scrap-based low-carbon electric arc furnace plant in Ludhiana is also expected to be commissioned in early 2026 and will expand the long products portfolio of the company, he said.
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