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Informist, Thursday, Jun. 4, 2026

 

MUMBAI – Tata Steel Ltd. continues to hold its view that there exists material uncertainty on the financial stability of its wholly-owned indirect overseas subsidiary Tata Steel Nederland BV, as an entity, following the Apr. 23 letter from authorities in Netherlands stating their intention to revoke the operating permits of two coke and gas ovens at the company's factory. This was restated by the company in its annual report for 2025-26 (Apr-Mar) issued Wednesday.

 

The material uncertainty is given the significance of the coke and gas factories to Tata Steel Netherlands's operations, and the risks and adversities posed to continuity of operations in those units, the company said in the annual report. In their Apr. 23 letter to Tata Steel Netherlands, the local environmental agency and the local province of North Holland had stated their intention to revoke operating permits and trigger an early closure of coke and gas plant 1 and coke and gas plant 2, as per the annual report.

 

The Netherlands-based subsidiary of Tata Steel had "made a detailed assessment and shared with the EA (Environmental Agency) and the Province (Province of North Holland) a timeline which is necessary to ensure a safe, responsible and controlled closure process," as per the annual report. Since details on the timing, nature and contents of the final decision by the local authorities were "currently unclear", Tata Steel Netherlands may recourse to legal action to manage the closure process with care and prudence, Tata Steel said in its annual report.

 

Tata Steel Netherlands had committed to execute an integrated de-carbonisation and environmental improvement project under a "non-binding Joint Letter of Intent executed with the Government of Netherlands and Province of North Holland in September 2025," as per the annual report. The events at Tata Steel's Netherlands operations unfolded from December 2024, when the local environmental agency sent a notice to Tata Steel Ijmuiden, a wholly-owned subsidiary of Tata Steel Nederland, on alleged non-compliances regarding certain aspects of the state of maintenance and continuing operation of its coke and gas plant 2.

 

The environmental agency had given the company 12 months to remedy the alleged non-compliances. Further, Tata Steel Netherlands was issued orders under penalty based on the agency's "measurements of exceedances of emissions of substances versus certain prescribed limits for both Coke Ovens (CGP 1 and 2)," as per the annual report.

 

In the strategic roadmap for each of its steel manufacturing operations in India, UK, Netherlands, and Thailand, laid out in the annual report, for the Netherlands operations, Tata Steel aims to be among the top three most profitable European steel companies through a transition to "green and circular steelmaking," and resilience and flexibility in operations and supply chains, including sourcing of new energy and raw materials.

 

Tata Steel Netherlands manufactures flat steel products for industries such as automotive, construction, packaging, and heavy equipment, and had a capacity of around 7 million tonnes a year as of Mar. 31. Apart from Netherlands, Tata Steel manufactures steel at its domestic factories, and at factories in the UK and Thailand. The company currently has consolidated steel manufacturing capacity of 36 million tonnes a year.

 

At 1408 IST, shares of Tata Steel were 0.6% lower at INR 210.61 on the National Stock Exchange.  End

 

IST, or Indian Standard Time, is five-and-a-half hours ahead of GMT

 

Reported by Rajesh Gajra

Edited by Avishek Dutta

 

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