Indian steelmaker Tata Steel has announced that it will reduce operations at some of its sites due to the increased measures taken by national governments in order to prevent the spread of the coronavirus. The company stated that it has taken the required measures to protect its employees working at all its sites around the world.
In India, its integrated steel facilities at Jamshedpur, Kalinganagar Angul (Tata Steel BSL) and Gamahria (Tata Steel Long Products) have reduced production levels and operations in downstream facilities have been halted and are in maintenance mode, although the company’s mining operations in India are operating normally. According to the statement released by the company, its shipments in India have decreased in view of the restrictions in the dispatch of finished goods and weak market conditions due to the shutdown of customer operations in automotive, construction and other segments.
Tata Steel said its aim is to preserve cash and liquidity and reduce the cost base to align with the operating and market situation, with a strong focus on working capital management.
As regards Europe, the company said that it will continue to supply steel products which are very important for society, such as food packaging, where demand has increased for canned food. However, it stated that steel demand in Europe has sharply dropped and the majority of the customers have suspended production, including European car manufacturers. Accordingly, production at some of Tata Steel Europe’s mills has been reduced to match the decreasing demand. The production levels of Tata Steel Europe’s four blast furnaces in the Netherlands, and Port Talbot, Wales have been reduced. The company has also reduced its shipment levels.