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Home / Business / Tata Steel says 4,000 jobs at ThyssenKrupp Venture

Tata Steel says 4,000 jobs at ThyssenKrupp Venture



Tata Steel, who has just signed a joint venture with German ThyssenKrupp to bundle their European steel operations, said there would be 4,000 jobs in the combined business, but none would be required. [1

9659005] Hans Fischer, the European Managing Director, said that 2,000 jobs would go through the sale of non-core businesses, such as electric steel processor Cogent Power. The remainder would be split equally between Tata Steel Europe and Krupp Steel due to "direct synergies". Tata announced that it would sell Cogent in May this year.

Mr Fischer said that the separation had not yet been completed on dismissal, but added: "We have not guaranteed redundancy, and if we want to starve, we need to find solutions to how we can manage that in the end."

Roy Rickhuss, General Secretary of the Steelworkers' Union, said the joint venture has the potential to secure jobs and steel production for a generation. "However, this joint venture will only be successful if the necessary strategic investments are made to make the business successful," he said.

Bimlendra Jha, British director of Tata Steel, confirmed that the company would invest millions of pounds in Port Talbot's blast furnace in the mid-ten years.

Port Talbot's local MP, Stephen Kinnock, said the joint venture was " good news for the steel workers, "but he added that" sustained investment in the plant is currently required work, "to ensure the future of the plant and British steel wider.

He welcomed the commitment to avoid redundancies before 2026 and reinvest the first £ 200 million in operating profits, but warned of the challenges Brexit and Donald Trump's steel tariffs posed.

Mr. Jha said he hopes Britain and the EU would reach an agreement on Brexit, but "nobody seems to know where we are going". If they did not agree, "it will be a sad state of affairs, and we will cross that bridge when it comes."

On steel tariffs of US President Donald Trump, Mr. Jha said, "We hope the UK and the EU have taken protective measures for any dumping that results from materials not getting into the US Otherwise our industry threatens to go into place." Europe and the UK. "

The joint venture will be the second largest steel producer in Europe behind ArcelorMittal with a turnover of 15 billion euros. Talks about the deal have dragged on for more than two years, with an agreement signed last September.

Since then, ThyssenKrupp has come under increasing pressure from activist hedge fund Elliott Management, which has reportedly participated and is concerned that the German industrial group, after years of slow movement, is now moving too quickly to conclude Tata Steel project.

The 50/50 deal is expected to create synergies of between 400 and 500 million euros per year, it said on Friday in ThyssenKrupp. In the case of an IPO of the joint venture, ThyssenKrupp would receive a higher share of the proceeds, with an economic ratio of 55/45 in its favor, the statement said.

The project, to be approved by the relevant competition authorities, including in the EU, would limit an eight-year restructuring of ThyssenKrupp, a 200-year-old conglomeration of U-boat lifts.

Since the adoption of the Memorandum of Understanding last year, the profits of the German group have increased, while those of Tata Steel Europe have come under pressure. The divergent development of the two companies has stirred up the shareholders of ThyssenKrupp, which seemed to recognize the stock market listing of 55/45 in the event of an IPO.


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