Job losses threat at Tata Steel IJmuiden as merger draws near

Storm clouds over Tata Steel in IJmuiden? Photo:

Steelworkers at Germany’s ThyssenKrupp overwhelmingly approved plans for a merger with India’s Tata Steel which would create Europe’s second-largest steelworks after ArcelorMittal. The transaction is designed to cope with production overcapacity in Europe.

The deal is far less popular in IJmuiden where up to 2,000 jobs could be lost at the former Hoogovens plant, the IJmuider Courant has said.

Tata Steel has agreed with the unions involved to study the possible job losses in IJmuiden. A similar number of jobs would be affected at ThyssenKrupp plants in Germany.

The merger is expected to be completed in the fourth quarter of the year after due diligence. ThyssenKrupp Tata Steel will be headquartered in Amsterdam.