Tata Steel Eyes €500 Mn Savings, UK Green Steel On Track
Steel

Tata Steel Eyes €500 Mn Savings, UK Green Steel On Track

Tata Steel expects a significant turnaround in its European operations this fiscal, driven by a cost transformation programme targeting €500 million in savings and steady progress on green steel initiatives, particularly in the UK.

Addressing shareholders at the company’s Annual General Meeting, Chairman Natarajan Chandrasekaran said discussions are underway with the Dutch Government to secure financial and policy support for Tata Steel Nederland’s decarbonisation roadmap. The group is confident that the UK and Netherlands transitions to green steel will proceed as scheduled.

In the UK, Tata Steel has started decommissioning two blast furnaces at Port Talbot, setting the stage for a £500 million government-supported shift to Electric Arc Furnace (EAF)-based low-emission steel production by fiscal 2028.

Chandrasekaran reaffirmed the company’s goal of positioning its Netherlands operations as one of Europe’s most sustainable and efficient steelmakers.

Despite global economic uncertainty and supply chain disruptions, Tata Steel maintained robust operations in India, running at near full capacity. The Kalinganagar facility successfully commissioned the country’s largest blast furnace.

Neelachal Ispat Nigam Ltd contributed strongly, delivering Rs 10 billion in EBITDA and generating positive free cash flows.
The company highlighted the broader macroeconomic backdrop: global GDP growth is expected to slow to 2.3 per cent in 2025 from 2.8 per cent in 2024 due to geopolitical tensions and shifting trade patterns. However, India remains resilient, with projected growth of 6.5 per cent, fuelled by strong demographics, policy reforms, and private sector momentum.

While a drop in coking coal prices offered some relief, subdued global steel realisations and continued volatility kept margins under pressure. Going forward, Tata Steel will prioritise cash flow generation to maintain a strong balance sheet while building capacity for large-scale capital projects to support growth in India and transformation in Europe. 

Tata Steel expects a significant turnaround in its European operations this fiscal, driven by a cost transformation programme targeting €500 million in savings and steady progress on green steel initiatives, particularly in the UK.Addressing shareholders at the company’s Annual General Meeting, Chairman Natarajan Chandrasekaran said discussions are underway with the Dutch Government to secure financial and policy support for Tata Steel Nederland’s decarbonisation roadmap. The group is confident that the UK and Netherlands transitions to green steel will proceed as scheduled.In the UK, Tata Steel has started decommissioning two blast furnaces at Port Talbot, setting the stage for a £500 million government-supported shift to Electric Arc Furnace (EAF)-based low-emission steel production by fiscal 2028.Chandrasekaran reaffirmed the company’s goal of positioning its Netherlands operations as one of Europe’s most sustainable and efficient steelmakers.Despite global economic uncertainty and supply chain disruptions, Tata Steel maintained robust operations in India, running at near full capacity. The Kalinganagar facility successfully commissioned the country’s largest blast furnace.Neelachal Ispat Nigam Ltd contributed strongly, delivering Rs 10 billion in EBITDA and generating positive free cash flows.The company highlighted the broader macroeconomic backdrop: global GDP growth is expected to slow to 2.3 per cent in 2025 from 2.8 per cent in 2024 due to geopolitical tensions and shifting trade patterns. However, India remains resilient, with projected growth of 6.5 per cent, fuelled by strong demographics, policy reforms, and private sector momentum.While a drop in coking coal prices offered some relief, subdued global steel realisations and continued volatility kept margins under pressure. Going forward, Tata Steel will prioritise cash flow generation to maintain a strong balance sheet while building capacity for large-scale capital projects to support growth in India and transformation in Europe. 

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