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’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