Throwing a spanner in the works of the proposed merger between Tata Steel Europe and Thyssenkrupp’s steel business, the influential workers council representing the Tata group’s Netherland steel unit on Saturday, October 20, vowed to block it in its present shape.
Works council chairman Frits van Wieringen told Reuters that, after viewing the two companies’ memorandum of understanding, he was concerned they intend to dissolve the Dutch subsidiary, which would strip away legal protections, and then lay off workers.
“Make no mistake, the Germans are also opposed to this as it stands,” he said.
Tata Steel Netherlands forms the heart of Tata Steel’s European operations, contributing more than 7 million tonnes in yearly steel making capacity, especially after it divested some of its UK steel units recently where it has over 4 million tonne steel capacity.
Full Content: Reuters
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