SEATTLE (Scrap Monster): The Dutch operations of Tata Steel hit its highest ever profit-after-tax (PAT) since its acquisition.
The PAT before exceptional items for Tata Steel Europe surged to hit INR 9,235 crore in 2021-’22, compared with loss of INR 6,155 crore in the previous fiscal. This is the best financial performance by the division, ever since its acquisition in 2007.
The company’s operational performance was mainly driven by the Tata Steel Netherlands unit, which produced 6.6 mt of liquid steel. As per rough estimates, the Netherlands business accounted for over two thirds of the total profits for Tata Steel Europe during the entire fiscal year.
Earlier, Tata Steel had plans to sell its Netherlands business to Swedish steelmaker SSAB. However, the high profitability delivered by the unit has made the company think otherwise. It appears that the company is willing to invest in ensuring a greener future for the Dutch business. It aims to reduce carbon dioxide emissions at the IJmuiden plant by 5 mta year by 2030, by undertaking detailed assessment of the hydrogen route.
The company had completely separated its UK and Netherlands operations in October last year itself. Accordingly, both the units now act as two independent companies pursuing separate strategic paths, noted N. Chandrasekharan, Chairman, Tata Steel.