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Tata Steel, which has just signed a joint venture with German ThyssenKrupp to consolidate their European steel operations, said that there would be 4,000 job losses in the combined business, but none would be mandatory. [19659005] Hans Fischer, European General Manager, said that 2,000 jobs would go through the sale of non-core activities, such as the Cogent Power electric steel producer. The remainder would be split equally between Tata Steel Europe and Krupp Steel as a result of "direct synergies". Tata announced that he was looking to sell Cogent in May this year.
million. Fischer said that the division of redundancies had not yet been developed, but added: "We have not guaranteed any compulsory layoffs.If we are hungry for the execution of this, we will have to find Solutions to manage that in the end. "
Roy Rickhuss, Community Secretary General, the Metalworkers' Union, said the joint venture had the potential to save jobs and steel for a generation. "However, this joint venture will only succeed if the necessary strategic investments are made to enable the company to prosper," he said.
Bimlendra Jha, CEO of Tata Steel, confirmed that the company would invest tens of thousands of dollars. Local Talbot MP Stephen Kinnock said the joint venture was "good news for metalworkers," but he added that "sustained investment in the plant is needed beyond the IT s & # 39; is commended for the commitment to avoid compulsory redundancies before 2026 and to invest the first 200 million operating profits in the enterprise, but warned against the challenges that steel prices Brexit and Donald Trump have posed.
million. Jha said that he hoped that the UK and the EU would reach an agreement on Brexit, but "no one seems to know where we are going". If they do not agree, "it will be a sad situation and we will cross this bridge when it comes."
On US President Donald Trump's steel tariffs, Mr. Jha said: "We hope that the UK and the EU has put in place protective measures against any spill resulting the non-routing of equipment to the US Otherwise it would threaten our industry locally in Europe and the United Kingdom. "
The joint venture will be the second largest steelmaker in Europe, behind ArcelorMittal, with 15 billion euros in turnover.The discussions on the agreement lasted more than two years, with a memorandum of understanding signed last September.
Since then, ThyssenKrupp is increasingly under pressure from activist hedge fund Elliott Management, which has reportedly taken a stake in the fund and expressed concern over whether the German industrial group, which has been too slow for years, is rushing to finalize the deal. Tata Steel company.
The agreement of 50/50 is expected to create synergies between 400 and 500 million euros a year, said Friday ThyssenKrupp. In the case of an initial public offering for the joint venture, ThyssenKrupp would receive a larger portion of the proceeds, with a 55/45 economic relationship in its favor, the statement said.
The operation, which must be approved by the competition authorities – including those of the EU – would cap an eight-year restructuring of ThyssenKrupp, a 200-year-old conglomerate that covers lifts to submarines.
Since the signing of the Memorandum of Understanding last year, the profits of the German group have increased while those of Tata Steel Europe have been disappointing. The divergent performances of the two companies upset the shareholders of ThyssenKrupp, which the distribution 55/45 in case of IPO seemed to recognize.
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