Tata Steel Europe: A tale of 2 plants and their transition to green future

Both the Netherlands and UK facilities have turned around but the transition to a green steel future may differ

Tata Steel Europe

The UK, which at peak level was losing £300-400 million, has come a long way — Tata Steel UK EBITDA in FY22 stood at £215 million

Ishita Ayan Dutt Kolkata
Tata Steel’s European story is a tale of two halves: The well-configured, efficient and bigger steelmaking site is in the Netherlands and the high-cost plant with structural inefficiencies is in the UK.

Numbers reflect this. A record rally in steel prices led to a stellar showing by Tata Steel Europe in FY22 and Q1FY23. The EBITDA in FY22 — at £1.2 billion (Rs 12,164 crore) — was the highest ever since Tata Steel’s £6.2-billion acquisition of Corus in 2007.

In Q1FY23, Europe EBITDA at £621 million (Rs 6,037 crore) was the best ever quarter. But the bulk of that would have come from the Netherlands, typically accounting for about 75 per cent.

First Published: Aug 03 2022 | 5:48 PM IST

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