Indian steel group Tata Steel, which owns the former Hoogovens plant in IJmuiden, is planning to invest hundreds of millions of euros in modernising its Dutch operations, the Volkskrant said.

At the same time, the company is to investigate possible further efficiency measures, the paper said.

The investments in the Netherlands include building a production line for stronger but lighter and thinner steel for the car industry. ‘This will improve our position on the car market,’ spokesman Robert Moens said.

The project, which will take three years, will cost €200m to complete.

The IJmuiden plant booked net profit of €153.7m in the 2015/16 book year, more than half the previous year’s total. This was due to difficult market conditions which have forced down prices, Moens told the paper.

The company has now commissioned McKinsey to analyse the competition facing Tata Steel’s Dutch operations. Moens has denied more job losses may be on the cards. Some 9,000 people work at the IJmuiden plant.