Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Tata Steel will continue with breaking up its Dutch and UK operations into two separate entities, the company indicated on Jun 25.


Davis Index’s queries on a final date for the demerger were not answered by the company by the time of publication but, per media reports, Henrik Adam, the current chief executive officer of Tata Steel Europe said that they intended to separate both businesses as soon as possible. 


Under the deal discussed with the company’s European Works Council (EWC), despite the separation of the two entities, the pricing policies of both companies will remain the same. However, both the units will have separate leadership teams and Boards that will report to the parent company Tata Steel.


Adam noted to the media on Jun 25 that over 100 people from Tata Steel were involved in creating a proposal for a fair separation and the company had agreed on a plan to move forward with the separation in a meeting with its EWC. As a next step, Tata Steel Europe will now consult with the unions of both entities on the separation process.


He added that some senior management roles may be made redundant because of the demerger, though the overall workforce is not expected to be affected by it.


The company did not reply to questions over potential layoffs if it moved to electric arc furnace operations at its Port Talbot plant.


Tata Steel UK has around 8,000 workers while employees at Tata IJmuiden in the Netherlands recently called off a strike after being assured by the steelmaker that it will not initiate any forced layoffs before 2026.

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