Tata Steel releases business updates on its worldwide operations

In present times when factories are temporarily shutting down their operations across the globe, companies are witnessing major financial losses due to the coronavirus pandemic. However, the exact losses and damages caused by the Covid-19 pandemic are hard to calculate as of now, but companies are putting in all efforts to keep its employees informed about all possible steps taken by the company to handle this crisis. 

Tata Steel has released a press statement mentioning smooth running of its worldwide operations and contributions made by the company to help the world recover from such tough times.

According to the press release, Tata Steel said, “In line with the increased action taken by national governments to contain the spread of COVID-19, Tata Steel will be reducing operations at some sites. We have already stepped up measures to reduce risk to our employees across all our sites as well as the communities around. Strict travel restrictions have been implemented and majority of our employees have been asked to work from home. Additional resources are being put in place to increase hygiene standards at all locations and enforce strict social distancing norms for employees and other stakeholders who have to attend to essential activity at workplace.”

Commenting on the company’s operations in India, it said, “The Government of India and respective State Governments have issued notifications and clarified that Mines, Steel, Coal, Power Fertilizers etc are essential services and process industries where the continuous operations of the plant facilities are important, and are exempt from the lockdown measures and can continue to operate subject to the hygiene standards and social distancing norms being followed. Based on the specific guidance and approvals received from the relevant District Administration, the company’s mining operations have been operating normally but the integrated steel facilities in Jamshedpur, Kalinganagar Angul (Tata Steel BSL) and Gamahria (Tata Steel Long Products) have started reducing production levels and operations in the downstream facilities have been suspended and put on care and maintenance mode.”

“In view of the restrictions in the despatch of finished goods and poor market conditions due to the shutdown of customer operations in automotive, construction and other segments, shipments to customers have been curtailed. The company is focused on conserving cash and liquidity and are reducing the cost base to align with the operating and market situation with strong focus on working capital management. All payments to MSME vendors and contract workers are being done on due dates. Tata Steel is keeping a continuous watch on the evolving situation and has taken several initiatives to ensure that the operations are in a state of readiness to ramp back and serve our valued customers as the situation improves and normalcy is restored. To minimise the presence of employees at workplace, including at our steel making hubs and mining operations, appropriate protocols have been put in place. As a responsible corporate, Tata Steel continues to work with the respective state governments and district administrations to help in this hour of crisis. In Jamshedpur, the Company is working to ensure that there is no interruption in basic civic amenities for the citizens of the city and all emergency services including Tata Main Hospital continue to operate normally with the support of the dedicated doctors, nurses and the support staff of the Hospital,” it added.

Tata Steel also commented on the contributions made by the company, the company said, “The company has also been working closely with the Government of Jharkhand and Odisha to create modern and well-equipped isolation centres with 1,000 beds in Jamshedpur, Kalinganagar and Gopalpur. In addition, Tata Steel Foundation has also taken up the initiatives to work with Jamshedpur District Administration to launch the Thought for Food program to provide nutritious meals to 50,000 most vulnerable people including 80 settlements in and around Jamshedpur. The Foundation is also undertaking digital outreach program to 200 Gram Panchayats in Odisha and Jharkhand covering more than 10000 people to spread awareness of Covid 19 and the hygiene precautions to follow.”

Speaking on the company’s operations in Europe, it said: “Tata Steel Europe is cooperating with national guidelines of the relevant countries and has updated measures to reduce risk to employees across all sites. We are committed to continue to supply steel products vital for society, including for food packaging, where demand has increased for canned food. However, overall European steel demand has sharply reduced compared to the normal conditions and many of our customers have paused production, including European car manufacturers. Tata Steel Europe has therefore reduced production at some of the European mills to match this lower demand. The business is focused on preserving cash and liquidity to tide over the challenging period. Tata Steel Europe is currently operating all four blast furnaces at a reduced level across the two steelmaking hubs – in Ijmuiden in the Netherlands, and Port Talbot, Wales and despatches to customers is currently continuing at the revised levels.”

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