Tata Steel, the Indian multinational steel manufacturing company, is all set to strengthen its European business and increase profits. In the process, it plans to restructure its European business operations and also adopt cost-cutting measures, including job cuts. About 3000 employees may lose their jobs, of which most will be white collared.
Not only has the demand for steel in the European Union become stagnant, trade conflicts have resulted in excess steel from across the world being dumped in Europe. Therefore, the Company is trying to ensure that its business is able to survive even in these less than favourable market conditions, without compromising on innovations in carbon-neutral steelmaking. To be able to do so, it will be concentrating on improving its performance financially, as well as gaining efficiency and cutting costs on salaries and remuneration.
Being one of the leading steel producers in Europe, it supplies high-quality steel products to the construction, infrastructure, automotive, packaging and engineering sectors.
It now plans to work on bettering its product mix, focus more on customers, optimise the production systems and adopt Big Data and advanced analytics.
The Company will also try to bring down procurement costs by sourcing more from within the Tata Steel Group and strengthening its ties with the group companies.
In Europe, Tata Steel is aiming for better cash flow by March 2021. It is also targeting an EBITDA or earnings before interest, tax, depreciation and amortisation margin of about 10 per cent throughout the market cycle.