The union called on the Dutch government to support the decarbonisation of Tata Steel Nederland

Over the past two years, the parties have been unable to reach firm agreements

The Dutch trade union FNV has called on the country’s government to reach an agreement with Tata Steel Nederland, a subsidiary of Tata Steel, to support its efforts to decarbonise steel production. It is stated in the message of the organization.

«Tata Steel needs to become more sustainable at a rapid pace to maintain its right to exist,» noted Bas van Wegberg, member of the FNV executive board.

Over the past two years, the government and Tata Steel’s management have been unable to reach firm agreements to support the company’s decarbonisation and create an appropriate social environment. Jihan Lachin, director of FNV Tata Steel, noted that the absence of such agreements carries great uncertainty about the future of the steel company’s employees.

«The green project could have moved from last year’s standstill if management and politicians had worked together. Because of all the delays, new threats are emerging. However, there is still a good opportunity to transform Tata Steel into an environmental leader in Europe and the world,” he says.

The trade union stated its position in an open letter to politicians and company management.

As GMK Center reported earlier, in September 2023 the government of Great Britain agreed to support package of up to £500m ($620m) to Tata Steel to secure the future of the Port Talbot steel mill. Tata Steel is expected to invest £1.25 billion, including a government grant – one of the largest public support packages in history – in new electric arc furnaces at the plant to make steel more environmentally friendly.

Also, steel production and sales of Tata Steel Europe in the first quarter of the 2023/2024 financial year (ended June 30) fell by 26% and 8% year-on-year – to 1.81 million tons and 1.97 million tons, respectively. In April, the planned replacement of the lining of blast furnace №6 at Tata Steel Nederland began, which caused a drop in the volume of steel smelting in the European division of the company.