Tata Steel targets €500 mn savings, accelerates green steel transition in Europe

Natarajan Chandrasekaran, Chairman, Tata Steel
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Tata Steel expects its European operations to turnaround with a cost saving of euro 500 million this fiscal and work on green steel projects taking off as planned in the UK.

Addressing shareholders at the company’s annual general meeting, Natarajan Chandrasekaran, Chairman of Tata Steel, said the company is in discussions with the Dutch Government for financial and policy-level support on its decarbonisation plan.

Tata Steel has also launched a cost transformation program targeting savings of €500 million in fiscal 2026, he added.

In the UK, he said the company progressed toward low-emission steelmaking with the decommissioning of two blast furnaces at Port Talbot, paving the way for a transition to modern Electric Arc Furnace-based steelmaking by fiscal 2028, supported by £500 million of UK Government funding.   

“We remain confident that the transition to the green steel making in the UK and in the Netherlands will happen as per our plans, in the next few years,” he said.

The efforts aim to position Tata Steel Nederland as one of Europe’s most efficient and sustainable steelmakers, he added.  

The company remains confident that the transition to green steel making in the UK and the Netherlands will happen as per plans, in the next few years, said Chandrasekaran.

The macro narrative in 2025 has been shaped by rising geopolitical uncertainties and shifting trade dynamics. As a result, global GDP growth is now projected to slow down to 2.3 per cent from 2.8 per cent in 2024.  

Despite this volatility, India has continued to outperform, with an estimated GDP growth of 6.5 per cent in fiscal 2025, backed by strong demographic fundamentals, prudent economic management, and a series of structural reforms contributing to a favourable environment for both consumption and private investment, he said.

Despite a decline in coking coal prices, persistent supply chain volatility and subdued global realisations kept margins under pressure.

In India, the company operated at near full capacity utilisation across its sites, with the successful commissioning of India’s largest blast furnace at Kalinganagar.

Neelachal Ispat Nigam also delivered a strong performance, achieving ₹1,000 crore in EBITDA and generating positive free cash flows.   

Given the company’s ambition for growth in India and transformation in Europe, it needs to continue building capabilities to execute large and complex capital projects. The focus will be on cash flows so that the balance sheet remains healthy and prepared for the future, he said.

Published on July 2, 2025