Loss of Tata Steel due to loss of steel demand | Financial

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In India, which announced a nationwide lockdown in March, Tata produced over a third less steel. Turnover there fell by more than a quarter. Economic activity in India is increasing again and Tata was using its factories there at 90 percent of capacity again at the end of June.

Blast furnaces in IJmuiden

In Europe, where the former Hoogovens in IJmuiden, among others, are part of the group, turnover fell by 14 percent. There, too, less steel was delivered to customers and margins were so much under pressure that the situation is not sustainable, Tata said. In both the Netherlands and the United Kingdom, Tata has received state aid to deal with the consequences of the corona crisis. At the same time, Tata had to make concessions to the staff in IJmuiden that there will be no forced layoffs for the time being in the event of a planned reorganization. The workers went on strike for weeks.

Tata Steel’s turnover fell by almost a third to 242.9 billion Indian rupees, which is just over 2.7 billion euros. The net loss was 43.7 billion rupees. Last year, Tata posted a profit of 7 billion rupees in the period from April to June.

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