Steel plants merger unveiled
Jobs to go in Tata and Thyssenkrupp JV
Tata Steel and Thyssenkrupp are expected to lay off up to 4,000 workers after announcing a joint venture that will create Europe’s second biggest steelmaker after ArcelorMittal.
The new company, to be named Thyssenkrupp Tata Steel, is likely to be based near Amsterdam in a move aimed at consolidating their future.
In a statement Thyssenkrupp CEO Heinrich Hiesinger said: “Under the planned joint venture, we are giving the European steel activities of Thyssenkrupp and Tata a lasting future.
“We are tackling the structural challenges of the European steel industry and creating a strong No.2.”
The deal outlines synergies of up to €600 million (£530m) a year as well as up to 4,000 job cuts, about 8% of the joint workforce.
Business Secretary Greg Clark said: “The government has been working hard with the unions to secure a sustainable future for Tata Steel in the UK, its 4,000 employees at the Port Talbot site and its supply chain.
“Today’s agreement between Tata Steel and thyssenkrupp is an important next step in establishing their shared ambition for Port Talbot as a world-class steel manufacturer, with a focus on quality, technology and innovation.”