In an announcement Monday, executives said the plan for the flat-rolled business involves four main efforts: improving efficiency by optimizing production processes through advanced data analytics, reducing procurement costs, and boosting sales of higher-values steels by improving the product mix.

In addition, it intends to lower employment costs by cutting scores of jobs. About two-thirds of the positions that are to be eliminated are white collar roles, the company said, adding that it is looking to boost productivity and reduce bureaucracy. 

“A transformation is needed to mitigate the current structural and cyclical headwinds and create the foundation for the company’s future success,” it said. 

“Stagnant EU steel demand and global overcapacity have been compounded by trade conflicts, which have turned the European market into a dumping ground for the world’s excess steel capacity. Together with a significant increase in the cost of emission allowances, this has created an urgent need for improvements to the company’s financial performance.” 

The company said the goal is to achieve a positive cash flow by the end of fiscal 2021 and a EBITDA margin of around 10% through the market cycle.  

“We plan to change how we work together to enable better cooperation and faster decision-making. This will help us become self-sustaining and cash positive in the face of unprecedented severe market conditions, enabling us to lead the way towards a carbon-neutral future,” said Tata Steel Europe chief executive Henrik Adam.