Tata Steel UK Halts Strike Prep, Focuses on Future Investments

On July 1, 2024, Tata Steel UK received confirmation from the Unite Union that they are suspending both their current work slowdown and the planned strike scheduled to begin on July 8.

A spokesperson from Tata Steel mentioned that with this assurance, they will stop preparing for the early shutdown of Blast Furnace 4 and other heavy operations in Port Talbot, which was planned for this week.

They expressed relief in avoiding this course of action. Discussions with the UK Steel Committee will resume based on previous agreements, focusing on future investments and business goals rather than renegotiating plans for closing heavy operations or adjusting employment support terms.

Additionally, the wind-down process for Blast Furnace 5 has started, with its final iron production expected by the end of this week.

Financial Highlights

In their last quarterly results, Tata Steel reported a significant decline in 4th-quarter profit, primarily due to lower steel prices and restructuring costs associated with its struggling UK operations. Consolidated net profit plummeted by 64% to ₹611 crore ($73.3 million) for the quarter ending March 31.

The company’s total revenue from operations also decreased, dropping to ₹58,687 crore from ₹62,962 crore. Its core India business contributed around 62% of the total revenue and experienced a nearly 4% decline. Tata Steel incurred exceptional charges of ₹649 crore related to the closure of its Sukinda Chromite Block in Odisha and other expenses linked to its European operations.

About Tata Steel

Tata Steel is a leading global steel company capable of producing 35 million tonnes of crude steel annually. It is widely recognised for its extensive global presence and operations across various countries. Tata Steel has embarked on a multi-year digital transformation to become a leader in ‘Digital Steelmaking’ by 2025. This effort has been recognised by the World Economic Forum, which awarded Tata Steel’s Jamshedpur, Kalinganagar, and IJmuiden plants with Global Lighthouse recognition. Tata Steel aims to achieve a 20% diverse workforce by 2025 and has been honoured with the World Economic Forum’s Global Diversity, Equity & Inclusion Lighthouse award in 2023.

On July 02, 2024, Tata Steel Ltd’s share price opened at ₹174.47, touching the day’s low at ₹173.60 as of 10:02 AM on NSE.

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