OREANDA-NEWS. September 16, 2011. Tata Steel has today announced a major five-year  improvement programme for its IJmuiden steelworks in the Netherlands that is  designed to sustain the plant’s potential to be a world-class steelmaker. It is  intended that this programme will be accompanied by substantial investment that  may total around EUR 800 million over the five-year period.

The improvement programme will focus on three goals:  further enhancing product quality, improving plant reliability and reducing  costs. The programme is balanced in its structure so as to achieve both cost  reductions and growth through investment. As a consequence, IJmuiden's annual  effective capacity will rise by 2015-16 from 7.2 million to 7.7 million tonnes  of liquid steel and the total number of full-time jobs at the plant will be  reduced by about 1,000 in the next four years.

These  and other objectives will be achieved by focusing on a range of  activities such as environmental performance, maintenance and optimisation of  installations, further enhancing product quality, and energy efficiency. There  will also be investment in staff training and development. The programme  clarifies the priorities that are to be addressed in order to establish a  platform for continuity and long-term growth at IJmuiden. It will also better  enable the plant to meet the demands of the current complex market situation.

Karl-Ulrich Kohler, MD & CEO of Tata Steel in  Europe, said: "The IJmuiden works enjoys the great advantages of an ideal  location - with its own port for bringing in raw materials and close proximity  to the market - excellent lay-out, an ability to be flexible in the use of raw  materials, and a high level of technology and craftsmanship. Today’s improvement  programme aims at significantly strengthening IJmuiden’s position in the steel  industry, helping it realise its potential as a world-class steel plant."

The improvement programme was shared with both the  trade unions and the Central Works Council (CWC) today. The intention as far as  possible is that there should be no compulsory redundancies.