Continuous Improvement Through Monitoring

Optimising our processes based on measurement results is at the heart of our approach to reducing our impact on the environment. In recent years, we have significantly expanded our monitoring activities, covering more substances, more locations and more frequent measurements, complemented by independent monitoring carried out by external experts.

Tata Steel now operates more than 300 emissions monitoring points and a range of monitoring systems, including:

• More than 60 electronic noses to monitor ambient air composition;
• Fine particulate matter sensors operated in collaboration with the citizen air-monitoring network;
• Noise monitoring at more than 10 measurement locations;
• Research into ultrafine particles in the surrounding area.

Insights gained from these measurements are used to improve processes and further reduce emissions. Tata Steel publishes its monitoring results online, making them accessible to everyone.

Source-Based Measures Remain Essential

Alongside monitoring, Tata Steel is strongly focused on reducing emissions through source-based measures and environmental control installations. Examples include:

• A new dedusting installation at the Pellet Plant, which has reduced emissions of particulate matter, lead and heavy metals by more than 80%;
• An off-gas cleaning installation at the Cold Rolling Mill and other measures that have reduced PAH (polycyclic aromatic hydrocarbon) emissions from three sources by more than half;
• A third extraction system at the Steel Plant.

Towards Green Steel

Tata Steel Nederland aims to conclude a bespoke agreement with the Dutch Government this year for its Green Steel project. This agreement will include additional measures that go beyond legal requirements to further improve the local living environment and reduce health risks. In September 2025, a Joint Letter of Intent for this purpose was signed by the Dutch Government, Tata Steel Nederland and Tata Steel Limited.

The permit applications relate to several projects:

• Ore blending yard 1: installation of a windbreak approximately 21 metres high
• Ore blending yard 2: full enclosure
• Scrap yard 3: full enclosure
• A new ‘power supply & control’ installation for the supply of electricity

Focused on reducing dust and noise

The windbreak and enclosures  will significantly limit the spread of dust. In addition, noise generated during the unloading of scrap will be dampened by the enclosure. With a length of nearly 400 metres, a width of 94 metres and a height of 23 metres, this enclosure will be one of the largest structures of its kind.

To further reduce dust dispersion, new conveyor belts will be fully enclosed. Additional misting systems will be installed at various locations on existing belts. For example, conveyor belts at the ore blending yards will be equipped with extra spraying systems to keep raw materials moist and prevent dust formation during transport. This process will be continuously monitored using sensors.

Supporting infrastructure and next steps

As part of these projects, a new ‘power supply & control’ installation will also be constructed. This will supply electricity to the facilities at ore blending yard 2. In addition, the permit application includes numerous supporting projects required to realise the new setup, such as the relocation of containers, lamp posts and other infrastructure.

In the future, ore storage yard 2 will also be partially enclosed. A permit application for this will be submitted at a later stage, once construction of ore blending yard 2 has been completed.

Part of broader sustainability efforts

The measures are in line with the agreements set out in the Joint Letter of Intent (JLoI), concluded at the end of September 2025 between Tata Steel Nederland, parent company Tata Steel Limited in India, and the Dutch government for the greening of steel production through the Green Steel Project. The JLoI allocates €600 million for additional measures aimed at improving the living environment and reducing health risks.

We acknowledge that steel production has an impact and that continuous improvement is required. The Green Steel Project plays a central role in this. This project marks a fundamental transformation of steel production in the Netherlands, with the aim of maintaining steel production while making it cleaner, greener, and more circular.

This transformation requires adjustments in processes, organization, and ways of working. At the same time, much is at stake: together with suppliers and partners, Tata Steel Nederland supports an ecosystem on which tens of thousands of families depend.

With this annual report, Tata Steel Nederland accounts for its results and progress in the financial year from April 1, 2025, through March 31, 2026. At the same time, it illustrates how the company is working toward the realization of the Green Steel Project and the further sustainability of steel production in the Netherlands.

The report also represents a step toward stricter European reporting requirements (CSRD), in which demands for transparency and substantiation are further tightened.

The full annual report can be viewed here.

By replacing clinker — the most carbon-intensive ingredient in cement — with alternative materials such as slag, the cement industry can significantly cut CO₂ emissions while giving industrial by-products a more valuable and circular use.

The aim of the BOF and EAF slags project is to transform these steel industry by-products into cementitious binders or constituents that can support the decarbonisation of cement and concrete production, while advancing circular economy principles. By developing new pathways for the beneficial use of these materials, the collaboration also aims to increase the availability of low-carbon concrete solutions in the market, providing designers, concrete producers, and contractors with a broader range of sustainable material options.

“This Memorandum of Understanding reflects a shared ambition to support the transition to more sustainable construction materials,” said Pieter Roelofsen, Director Strategy, M&A and Partnerships at Tata Steel Nederland. “By exploring innovative applications of steel slag, a condition for the successful delivery of our Green Steel Project, we aim to contribute to circular value chains while supporting the decarbonization of both the steel and cement industries.”

Olivier Guise, Executive Director of Strategy, Technology and Business Development at Ecocem, added: “This type of collaboration has the potential to be transformative for the global cement industry. Together, we are investigating how two underutilised by-products from steel manufacturing could become next-generation alternative cementitious materials, helping reduce emissions while creating value from materials that would otherwise go unused. This is exactly the kind of cross-industry innovation needed to accelerate the transition to a circular, low carbon economy and reshape the future of sustainable construction.”

The signing of this MoU underscores Tata Steel IJmuiden’s and Ecocem’s shared commitment to innovation, circularity, and the development of low-carbon solutions for the building industry.

-        Development of recycled high‑quality steel from scrap

-        A drastic reduction in CO₂ emissions

-        Strengthening of the circular economy in Europe

-        Research into the (commercial) applicability of fully recycled steel in 

         cars and washing machines

A key research goal of CiSMA is to achieve a 70% overall reduction in CO₂ emissions in sheet steel production through the use of 100% scrap and EAF technology. Using 100% scrap in steel production is not yet a realistic scenario and depends on many factors, such as the availability of scrap. However, participating in this research provides valuable insights for producing high‑quality steel that contains 30 to 40% scrap.

Machine Learning and digital models are also being used to examine to what extent contaminated scrap can be cleaned for optimal reuse. This requires removing unwanted elements from the scrap. Dr. Rana: “If we succeed, this will be a real win‑win, also because of the critical raw materials such as copper, we will be able to recover.”

Alongside universities and research institutes, CiSMA brings together commercial partners from various sectors including automotive, professional laundry equipment and engineering. Volvo Cars and Electrolux Professional, for example, are researching the (commercial) applicability of this recycled steel in cars and washing machines whilst boosting a circular approach and reducing CO₂ impact. The guiding principle is that this circular steel offers exactly the same properties and performance as traditionally produced high‑quality steel. Dr. Johan Pilthammar, Engineering Technical Specialist at Volvo Cars adds: “It’s very important for Volvo Cars to understand if, and how, a higher recycled content is influencing the steel’s behaviour. This project is of high value for us since it will verify that this assumption holds for the investigated steel grades in the forming process. Also, if we see differences with a higher recycled content, we will learn how to adapt to these changes.”

“Electrolux Professional remains wholly committed to reducing the climate change impact of our industrial operations. Steel is a key material in our production process and exploring innovative ways of introducing a greater level of circularity is of significant strategic importance to reducing our upstream Scope 3 emissions”, states Andrea Caputo, Sustainability Director BA Laundry, at Electrolux Professional. He concludes: “The CiSMA project has the potential to deliver truly game-changing results, and we are excited to participate in what is likely to be a landmark pilot test.” 

CiSMA is coordinated by Eurecat (Spain) and consists of 13 partners from five countries, including voestalpine, Volvo Cars, Electrolux Professional, RISE, Blekinge Institute of Technology, ALBA Synchrotron, Aerobase Innovations, the European Steel Technology Platform ESTEP, CSIC, the University of Liège and Tata Steel Nederland. CiSMA has a total budget of nearly €4.5 million and is funded through the EU’s Horizon Europe programme.

·       Safety: the combination of high strength and high formability resists the impact of collisions;

·       Energy efficiency: the steel is hot-formed at lower temperatures;

·       More corrosion protection: thanks to a specific zinc coating that does not crack during hot-forming;

·       Cost savings: due to less tool wear and fewer post‑processing steps. 

Lower energy consumption and improved passenger safety 

Ultra-strong steels used in automotive crash structures are usually hot-formed at very high temperatures. At those temperatures, the zinc coating on the steel can melt, resulting in cracking. For that reason, manufacturers often use aluminium‑silicon coated steels. Those can withstand high temperatures but offer lower corrosion resistance. “By developing this new high‑quality steel grades, we address these limitations,” says Dr. Radhakanta Rana, metallurgist at Tata Steel Nederland and project leader of WarP-AHSS. Dr. Rana explains: “The benefits go beyond energy savings alone. By combining ultra-high strength with exceptional in-service formability, these new steels can absorb significantly more crash energy. This reduces the effect of a collision and increases passenger safety. It is a true breakthrough in steel design and aligns with Tata Steel Nederland’s strategy for more sustainable steel production.” 

Less maintenance and lower production costs 

These new steel grades also offer various benefits for automotive manufacturers. A zinc coating, processed at lower temperatures, eliminates the need for additional processes such as sand‑blasting and provides improved corrosion resistance. This leads to a simpler, more efficient production process, less maintenance, and lower production costs. Dr. Christina Sunderkötter, Project Manager Sustainability Solutions from Volkswagen Group adds: “In addition to reducing environmental impact, we want to offer a steel solution that meets the requirements of future vehicle production: better safety performance, simpler manufacturing processes, and lower part-making costs. Together through WarP‑AHSS, we are working on the next evolution in AHSS technology.” 

WarP-AHSS is funded by the European Research Executive Agency (REA) on behalf of the European Commission. The project runs from 2023 until 2027.

Photo by: David de Jong

• Sustainable and future-proof: Ready for upcoming legislation.
• Logistical efficiency: Entire production process on one site, simpler supply chain.
• Food safety: The TCCT-Protact® combination meets the strictest food safety standards.
• Cost savings: With TCCT-Protact®, no additional lacquer layer is needed at the customer.
• European standard: Tata Steel Nederland is the exclusive developer and patent holder of TCCT technology and supplies it to other steel producers.

Packaging Steel: The Recycling Champion

Steel packaging is not only safe and sustainable but also a recycling champion. In the Netherlands, more than 95% of packaging steel is recycled into new steel—from food cans to aerosol cans. For canned food, packaging steel offers many benefits, such as long shelf life (even outside the refrigerator), reducing food waste. Thanks to steel’s magnetic properties, steel packaging is easy and inexpensive to separate from other waste, contributing to a circular economy. Steel cans are therefore the most recycled packaging material.

Key Benefits

• Quality and Durability - Expected lifespan of 25 years with minimal maintenance
• Pre-greened, Quick Installation - Compatible with both empty and pre-planted modules
• Optimal water drainage and Root-Resistance - Ensures long-term protection of the roof structure
• Fire Safety

Climate Adaptation and Environmental Impact

Green roofs absorb heavy rainfall, reduce stormwater runoff, and help prevent sewer system overload. The role of green roofs in climate resilience is vital and they have positive effects on CO₂ footprints. Additional benefits include improved biodiversity, sound insulation, and temperature regulation. With municipalities increasingly mandating green roofs, the lack of suitable systems for metal roofs posed a challenge.

Easy installation ‘like a Lego kit’

Tata Steel’s Green Box solves this by enabling easy installation without compromising water tightness or structural integrity. Green Box is tailored for industrial and office buildings using metal roofing systems. It aligns with evolving sustainability regulations and modern construction needs. Mario Kenda, product developer at TSN’s downstream organisation Building Systems, including SAB-profiel (NL), Fischer Profil (DE) and Montana (CH), was instrumental in the creation of Green Box: "The moment we tested our first 3D-printed prototypes on trapezoidal sheets, we knew we had a game-changer. Green Box offers a practical, affordable solution for one of the construction sector’s biggest challenges. The system is very easy to install, you arrange the boxes like a Lego kit on the metal roof."

Green Box; Tata Steel innovates beyond steel

The Green Box is available as a pre-greened solution, meaning it comes pre-planted for immediate installation. To achieve this, Tata Steel partnered with a leading company from the horticultural sector. The Green Box is produced with a sustainable type of plastic, made from recycled high density polyethylene, with good UV resistance characteristics and designed by Tata Steel Nederland. Production is based on injection molding, with alternative methods like deep drawing also explored. The Green Box is developed conform the new guidelines for green roofs by the International Federation for Lightweight Metal Construction (IFBS).

Hans van den Berg, CEO of Tata Steel Nederland: “Power plants of Vattenfall and its predecessors have been a logical combination with our steel production process for almost a century. The plants are unique because, unlike any other power plant in the Netherlands, they are fuelled by the residual gases from our steel production process. With the current contract expiring at the end of 2025, this is the moment to change ownership: By owning the power plants, Tata Steel Nederland will be able to manage the complex, step-wise transition from its existing steelmaking process to a low carbon, green steel operation. Therefore, this transfer of ownership is a significant and tangible step in Tata Steel Nederland’s transition to green steel.” 

Alexander van Ofwegen, Senior Vice President and Head of Business Area’s Customers & Solutions and Heat of Vattenfall: “Vattenfall supports Tata Steel's ambition to transition to more sustainable steel production. In this transition, these gas power plants in Velsen are still needed.This agreement is therefore a win-win situation. For the employees of the plants as the work will continue under similar employment conditions and a win for Tata Steel in gaining more control over the entire chain in the transition to low carbon steel making.” 

Vattenfall power plants in IJmond region 

The Vattenfall power plants in the IJmond region consist of three units. The power plants 24 and 25 in Velsen-Noord generate electricity predominantly from the residual gases from the steel production process. This electricity is used by TSN in its operational processes.  

The third unit is IJmond 01, a combined heat and power plant on the Tata Steel site in IJmuiden. This unit is fuelled by the residual gases from the steel production process and it produces electricity and steam. This electricity and steam are also used in the steel plant's operational processes. The three units employ approximately 116 employees. 

Advice of works councils, approval regulatory authorities 

The works councils of both Vattenfall and TSN have issued their advice to the transaction. Regulatory authorities, among which the Netherlands Authority for Consumers and Markets (ACM), have approved the change of ownership of the power plants. Ownership of the plants will transfer to TSN on January 1, 2026. 

The JLoI sets out the aims and objectives of the parties but is neither binding on the execution of the Projects or the Subsidy, nor with respect to any of the other commitments made herein by any of the Parties, with the exception of the commitment of the Parties on good faith negotiations towards a tailor-made agreement including the commitments related specifically to the period prior to the tailor-made agreement. Both parties will continue working towards the final tailor-made agreement in the coming months including after the elections and the formation of the new government in the Netherlands. The final investment decision will be considered by the Tata Steel Board in the process to come to the final binding tailor-made agreement. 

Mr. T V Narendran, CEO & Managing Director, Tata Steel and Chairman of the Supervisory Board of Tata Steel Nederland: “We would like to thank Minister Hermans, her colleagues in the Cabinet and the team from the Dutch Government and from the province of North-Holland who have engaged constructively and painstakingly with us over the last 2 years to complete this first step in our journey towards creating a sustainable long-term future for Tata Steel Nederland.

There are a lot of issues to resolve and work to be done before us. This includes work we have to do internally, including the completion of the engineering preparedness for this very complex transition & addressing statutory and regulatory aspects related to the coke and gas plants. It also involves external issues including satisfactory resolution of critical policy matters impacting the investment case, obtaining permits for the projects, and agreeing on detailed terms in the binding agreement, before we can consider proceeding towards the investment decision. We are also closely monitoring the policy developments in EU on CBAM and in the Dutch Parliament regarding the challenges of the 2030 CO2 reduction targets. In parallel, we are also looking at prioritisation, optimisation and sequencing of the capex spend such that it is affordable for all stakeholders. 

We are committed to working with all stakeholders including the government on resolving these points before the finalisation of the tailor-made agreement. The size and scale of the project is very large, and we are working to ensure that Tata Steel Nederland is ready for it, by improving its financial and operating performance and restoring it to its position as one of the most competitive steel making sites in Europe. Our Unions have supported this transition project and their continued support is essential to secure a robust sustainable future for TSN. We also want to assure our customers that our transition plans are based on ensuring an uninterrupted supply chain across our product portfolio.”

Through the first phase of the Integrated Health measures and Decarbonisation Project, TSN aims to achieve the following: 

- TSN aims to de-commission the existing Blast Furnace #7 and Coke and Gas Plant 2 and construct a DRP intended to initially be operational on natural gas and an EAF with increased scrap-intake. This would reduce annual scope 1 CO2 emissions by 5.4 Mta relative to the asis maximum of 12.6 Mta. Subsequently, Carbon Capture and Storage will be added to the DRP to further reduce TSN's annual scope 1 CO2 emissions by 0.6 Mta. Finally, biomethane and/or hydrogen will be used when economically available at scale, to further reduce TSN's annual scope 1 CO2 emissions by 1.2 Mta on phased basis (all subject to margins of uncertainty). 

- In order to improve the healthy living environment, and reduce its contribution to coarse and fine dust (PM10) immissions, annual emissions of individual substances of very high concern – NOx emissions, SO2 emissions, odour emissions and noise, TSN aims to undertake specific beyond-legal measures, beyond the de-carbonisation of its assets. TSN will cover the blending pile of the pellet plant, build a windbreak for the blending pile of the sinter plant, cover the iron ore yards, invest in dust reduction measures at slag processing facilities, and noise & odour reduction measures. These sub-projects are expected to have a shorter construction time and be delivered before the end of this decade. TSN will also cover the iron ore yards for the volume of ore needed for the new DRP-facility, and cover the steel slag cooling of the new EAF (to be completed at the same time as the respective installations). 

- TSN aims to implement new processing methods with the aim to improve the application of existing Basic Oxygen Steelmaking slag and future EAF slag. It also aims to increase its intake of scrap from 17% in 2019 to 30%, to improve circularity. 

Both parties have agreed, certain conditions as necessary to be completed / satisfied to arrive at the tailor-made agreement and the JLoI contains termination clauses for both Tata Steel and the Dutch government. For Tata Steel this includes policies relating to the national CO2 levy resulting in a significant cost to TSN; network tariffs significantly increasing relative to prevailing levels, indexed for inflation; and policies regarding steel slag affecting the business significantly in a negative way. For the Dutch government and for Tata Steel it is also essential that TSN adequately addresses all its legacy liabilities, in particular relating to the Coke and Gas Plants. The Parties have agreed to develop and finalise the project schedule in the tailor-made agreement. 

TSN has not yet completed the full engineering of the integrated project and therefore not finalised the total spend. The capital expenditure spend and phasing will be finalised at the stage of signing of the tailor-made agreement and at the point of making the final investment decision, and the project execution will also be spread over several years. The Dutch government intends to support up to €2 Billion under the JLoI. Additionally, TSN has made an application to the EU Innovation Fund for ~€0.3 Billion. The remaining amount is expected to be funded by a combination of the cash generated and contributed by Tata Steel Nederland, project financing debt, and funding procured by Tata Steel Limited over the period of project spend. 

For more information about the JLoI:

https://www.tatasteelnederland.com/en/sustainability/green-steel-plan/agreement

https://www.tatasteelnederland.com/sites/default/files/support-for-a-major-step-towards-cleaner-steel-production.pdf

“We are excited that Peter will soon join the Board of Management of Tata Steel Nederland as CCO. His extensive knowledge of the steel industry coupled with years of top level management experience will be of great value to us,” says T.V. Narendran, CEO & Managing Director of Tata Steel Limited and Chairman of the Supervisory Board of TSN.

“I look forward to joining Tata Steel Nederland during its transformation to become one of Europe’s top steel manufacturers. Together with all my Tata Steel colleagues, I want to focus on improving our profitability by driving revenue growth and building sustainable relationships with our customers,”  adds Peter Bernscher.

With the appointment of Peter Bernscher, the TSN Board of Management will be complete and will per September 1 2025 consist of four members: Hans van den Berg (CEO), Hans Turkesteen (CFO),  Akash Latchman (COO) and Peter Bernscher (CCO).

TV Narendran, CEO of Tata Steel Ltd. and Chairman of the Supervisory Board of TSN, comments on this adjustment: “As part of the transformation of Tata Steel Nederland we have consciously opted for a restructured and performance based  Board of Management  focused on the customer and the market, manufacturing excellence  and the transformation of TSN into a profitable organization.”

The current CEO, Hans van den Berg, and CFO, Hans Turkesteen, will be re-appointed. In addition, the BoM of TSN will consist of two new roles: a Chief Operating Officer (COO), who will be responsible for all operational activities and a Chief Commercial Officer (CCO), who will drive commercial strategy and customer focus. The current roles of Managing Director IJmuiden, Managing Director Downstream and Chief Project & Engineering Officer (CPEO) will cease to exist.

Akash Latchman, who joined Tata Steel Nederland in November 2024, has been appointed as COO. He will lead the technical implementation of the Green Steel plan in IJmuiden. The current Managing Director IJmuiden, Tom Eussen, will transfer his  technical responsibilities to Akash Latchman.

The CCO role is currently vacant and an appointment will be announced in due course. The position of Managing Director Downstream, currently held by Gunilla Saltin, has expired as of 1 July. As a result of this both Tom Eussen and Gunilla Saltin have stepped down as BoM members and will leave the company in due course.

TV Narendran concludes: "With an adjusted Board of Management, we want to accelerate the transition of TSN into a leading and sustainable steel company. The new structure contributes to more focus and effectiveness. I want to express my heartfelt gratitude to Tom and Gunilla in advance for their outstanding efforts during this transition phase and for their invaluable contributions to Tata Steel Nederland."

During this transition, Hans van den Berg will manage the upstream sales and marketing  & commercial activities while Hans Turkesteen will manage the downstream business.