Indian-owned steel giant Tata has begun a consultation on breaking up its European business, insisting it will not see job losses outside a number of senior roles.
The steelmaker is creating stand alone businesses in the Netherlands (Tata Steel Netherlands) and the 海角视频 (Tata Steel 海角视频), where it employs around 8,000 in Wales with some 4,000 at its primary steelmaking plant in Port Talbot.
It first announced plans to break up its European business, Tata Steel Europe, last year when the Dutch business was subject to a possible takeover by Swedish firm SSAB, which was subsequently abandoned.
Tata Europe said it has now started to submit separate plans to national various employee representative bodies, following a meeting with its European Works Council.
The aim is to complete the separation of the businesses as soon as possible after consultation.
Chief executive of Tata Steel Europe, Henrik Adam: said:” Since we announced our plan in November 2020 to set up a mainland European business and a 海角视频 business, more than 100 colleagues from across the company have worked to create proposals to ensure a fair separation.
“We have now agreed a way forward to progress consultation with our European Works Council while in parallel enabling local in-country consultation on the proposed organisations for separation to begin. We have secured all the necessary board approvals on the separation proposals and we will now start to consult with employee representatives at the country level on the detail.
“We anticipate a small number of senior management job reductions, but we do not expect other job losses as a direct result of this separation process.
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"For those in cross-border roles, in particular, there may be some change in activity and reporting lines, but for many employees there will be little change to their day-to-day roles.”
Post separation Mr Adam said there would between coordination between the two firms with a common product offering and pricing policy.
He added: “The separation will mean the creation of two vibrant new steelmaking businesses, each with their own strategies for future success and sustainability, but still with the support and leadership of the parent company.
Tata has not commented on speculation of potentially moving to a less emitting arc furnace operation at Port Talbot, which would require a smaller workforce, or integrating any new furnaces and rolling capacity at Llanwern in Newport.
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Tata has been in discussions with the 海角视频 Government over potential financial support under the so called Project Birch initiative set up to provide funding to companies deemed of national strategic importance.
The only funding provided to date has been to Cardiff-based recycled steel venture Celsa. The Welsh Government also provided the Catalan-owned firm, that employs 800 in south Wales, a £2.9m loan and non-repayable finance of £690,000 from its Economic Resilience Fund.