Tata Steel, the world's seventh-largest steel maker, will invest $1.1 billion (€800 million) over a five-year period and cut about 1,000 jobs over the next four years at its Ijmuiden steel works as part of a restructuring of its Netherlands operations.
The investment at Ijmuiden facility will increase its liquid steel making capacity by 0.5 million tonnes (MT) to 7.7 MT and enhance product quality over the next five years.
Tata Steel Europe said, ''The improvement programme will focus on three goals: further enhancing product quality, improving plant reliability and reducing costs. The programme is balanced in its structure so as to achieve both cost reductions and growth through investment.''
Tata Steel Europe will reduce 1,000 full time jobs and as far as possible there should be no compulsory redundancies, it said in a statement.
''These and other objectives are to further enhance product quality, and energy efficiency. Tata Europe will also invest in staff training and development. All these changes will establish a platform for continuity and long-term growth at IJmuiden and meet the demands of the current complex market situation,'' the statement added.
Karl-Ulrich Köhler, MD & CEO of Tata Steel in Europe, said, ''The IJmuiden works enjoys the great advantages of an ideal location – with its own port for bringing in raw materials and close proximity to the market – excellent lay-out, an ability to be flexible in the use of raw materials, and a high level of technology and craftsmanship. Today's improvement programme aims at significantly strengthening IJmuiden's position in the steel industry, helping it realise its potential as a world-class steel plant.''