Economy

Swedish SSAB talks with Tata Steel Netherlands about takeover

“SSAB has said that they only want to continue with the activities in the Netherlands,” says Frits van Wieringen, chairman of the European works council of Tata Steel about the ongoing negotiations.

The Dutch branch is therefore talking about a deal with the Norwegian SSAB. The UK portion will then likely be included under Tata Steel Limited.

It seems that the split of Tata Steel Europe will already be started on Monday, sources say to RTL Z. At the end of the ride, Tata Steel Europe will be disbanded and the two branches will remain.

Loss

“I think it is a good solution for the long term: splitting up the Tata Steel Europe,” says Van Wieringen. According to the Works Council chairman, there has been constant discussion in the past two years about the fact that both branches should form one company. But they were not, emphasizes the chairman.

The British branch has been making huge losses for a long time, which is why significant cuts have to be made at Tata Steel Europe. These cuts could also affect the Dutch branch in IJmuiden.

A split-up could turn out to be more advantageous for Tata Steel Netherlands.

The solution that is now available is that the Dutch branch is sold. Tata Steel will then meet with the British government to see what they can do about the situation in the United Kingdom, Van Wieringen reports.

Caution

In the short term, dividing up will not be easy, says the Works Council chairman. “A large part of our company has a European structure. This makes it quite complex.”

We still have to be careful about the talks, Van Wieringen emphasizes. “They are really just beginning conversations. It can go in any direction.”

SSAB also emphasizes this. The company says that nothing has really been agreed yet and that there are no prices on the table yet.

Staff

If SSAB takes over Tata Steel Netherlands, there will probably be no need to cut back on business operations. The offer of both is complementary. They don’t compete with each other.

The already planned reorganisations will also be put on the shelf, although that is not yet final. “I actually expect it,” says Van Wieringen.

Unfortunately, there is also some bad news. After all, it is being looked at how the company can limit the consequences of the corona crisis and that could still mean cutting the workforce of Tata Steel Netherlands.

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