Tata Steel and German steel company ThiesenCroup have agreed to merge. After this merger, Tata Steel will become Europe’s second largest steel producer after ArcelorMittal.
Under merger, after merger of Indian-owned Tata Steel’s UK-based plants in German company, it will become a Pan-European venture with a business of 13 billion pounds annually in joint form.
It also includes the Tata Steel plant of Port Talbot in Wales, in which four thousand employees work.
48 thousand employees
There was talk of merger between the two companies for more than a year. The German-owned ThyssenCrup’s supervisory board gave its green signal for the merger on Friday.
Together, the two companies employ about 48,000 people.
Both companies estimate that with this merger, they will be able to save from 350 million pounds to 440 million pounds annually.
Tata Steel chairman Natarajan Chandrasekharan said, “This is a very important step for Tata Steel and we are fully committed to the long-term interests of the joint venture company. We are confident that it will be beneficial for all the shareholders also.”
We’ve signed definitive Joint Venture agreements with @thyssenkrupp_en to create a new steel champion in Europe. Thyssenkrupp Tata Steel BV will be positioned as a leading European manufacturer. #FutureOfSteel https://bit.ly/2IDRJfs
1:39 pm – 30 June 2018
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In September 2017, when the initial talks about the agreements between the two companies came to light, the two sides expressed the hope that this merger would go to about 4,000 thousand jobs, half from the admin and half of the production.
7,000 people working in Tata’s Wells together with two units Britain’s trade union has expressed the hope that this agreement will end the uncertainty situation for the employees.
However, the Chief HR Officer of the Thysenkrupp company, Brookhard, assured about the employees’ jobs in his video message and assured that the future of employees would be excellent with this merger.
CHRO Burkhard on job security and the sustainable future for employees of the planned #jointventure #wayforwardforsteel
2:32 pm – 30 June 2018
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Posted by Twitter @thyssenkrupp_en
Union general secretary Roy Rechas welcomed the announcement and hoped that there is a possibility of saving jobs.
But he also said that the venture will succeed only if it has been ensured that strategic investment has been made to increase business.
The name of the new company is Thiesencrupt Tata Steel
Henrik Hissinger, chief executive of ThiesenCrunch had earlier said that both the companies need to become more robust and efficient with increasing pressure on imports and more production.
Recently, European steel producers are facing 25% of their tariffs on exports in their largest market United States.
“Joint venture with Tata Steel will prove to be a milestone in the transformation of Thysencrupp,” Thinsenkrup said in his statement.
The name of the new company formed by the merger will be Thiesenkrupt Tata Steel and it will be located in the Netherlands.