In line with the increased action taken by national governments to contain the spread of COVID-19, private sector steel behemoth Tata Steel too will be reducing operations at some of its sites, as per a company press release.
— The release further said that, “… currently, we are unable to assess the impact of the present situation on the operations and financials of the company, and that the management is keeping a close watch on the situation. The management will take appropriate steps as it deems fit in the interest of the company and its stakeholders.”
India Operations
— Based on the specific guidance and approvals received from the relevant district administrations, the company’s mining operations have been operating normally but the integrated steel facilities in Jamshedpur, Kalinganagar, Angul (Tata Steel BSL) and Gamahria (Tata Steel Long Products) have started reducing production levels, and operations in the downstream facilities have been suspended and put on “care and maintenance mode”.
— In view of the restrictions in the despatch of finished goods and poor market conditions due to the shutdown of customer operations in the automotive, construction and other segments, shipments to customers have been curtailed. The company said it is “focused on conserving cash and liquidity and is reducing the cost base to align with the operating and market situation with a strong focus on working capital management. All payments to MSME vendors and contract workers are being done on due dates.”
— Tata Steel further said it is “keeping a continuous watch on the evolving situation and has taken several initiatives to ensure that the operations are in a state of readiness to ramp back and serve our valued customers as the situation improves and normalcy is restored.”
European Operations
— Tata Steel Europe is cooperating with national guidelines of the relevant countries and has updated measures to reduce risk to employees across all sites.
— “We are committed to continue to supply steel products vital for society, including for food packaging, where demand has increased for canned food,” the company said.
— However, it added: “Overall, European steel demand has sharply reduced compared to the normal conditions and many of our customers have paused production, including European car manufacturers.”
— “Tata Steel Europe has, therefore, reduced production at some of the European mills to match this lower demand. The business is focused on preserving cash and liquidity to tide over the challenging period,” the company further said.
— Tata Steel Europe is currently operating all four blast furnaces at a reduced level across the two steelmaking hubs – in Ijmuiden in the Netherlands, and Port Talbot, Wales and despatches to customers are currently continuing at the revised levels.
— “The situation is under continuous review and the management is prepared to take swift actions depending on the trading conditions,” the release said.
– Reported by Ms. Madhumita Mookerji
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