Tata Steel units in the UK and Netherlands may be on the verge of breaking apart, some 20 years after British Steel merged with Dutch steel major Hoogovens to form Corus, recent reports have said.
With the British arm of the company reportedly seeking state support of £500 million, or about Rs 4,700 crore, “a breakup would appear to be inevitable to make sure British taxpayers’ money does not end up in the Netherlands”, a recent Dutch media report said.
Tata Steel officials hinted that the company is not considering such a move. “There is nothing to comment,” said a top company official who requested not to be named.
A spokesperson for Tata Steel’s European operations said, “We recognise the uncertainties caused by this unprecedented pandemic. But we are one company and we believe in the value created for our customers by the combination of our businesses.”
The company is currently focused on ensuring all its employees across countries remain healthy and safe. “We must work together on this, especially at this time,” the spokesperson told ET on Monday. “We believe we should be focused on making our company strong again, and to achieve that, we must do it together.”
The Covid-19 pandemic has led to an overall decline in European steel demand, and several Tata Steel customers, including European car manufacturers, have currently paused production. “The utilisation levels are currently around 70% and dispatches are continuing in both UK and Netherlands,” Tata Steel had recently said while reporting its production and sales figures.
Source: Economic Times