Tata Steel risks a fine of millions, next step towards factory closure

The North Sea Canal Area Environmental Agency has taken new steps to ensure that Tata Steel “complies with the law”.

The environmental agency is threatening two fines totaling almost 27 million euros, and new steps in a procedure that could ultimately lead to the closure of one of the factories in IJmuiden. The group must pay the penalty if it does not reduce emissions of harmful substances.

The regulator and the steel group have been involved in a legal battle for some time about limiting emissions of harmful substances.

The environmental service has based on measurements concluded that the two coking gas plants exceed the standards. In the coke gas factories, coal is fired at a high temperature until the coke gas comes out and coke remains. The steel company states that the measurements are incorrect.

This concerns emissions of “substances of very high concern”, including heavy metals. According to the regulator, the group exceeds the standard for various harmful substances up to five times in one factory and up to twenty times in the other. Tata Steel has eight weeks to take measures to stop the violations.

The environmental department has also taken a next step in a long-running procedure that could lead to the permit for coke gas factory 2 being withdrawn. The regulator already issued a first warning in October. The investigation is now completed.

The regulator has now given Tata Steel twelve months to ensure that coke gas plant 2 meets the legal requirements. The company must draw up an action plan within six weeks. If this does not happen, the environmental department will prepare to withdraw the permit.

Withdrawal of the license of the coking gas plants “would have a disastrous effect on the internal processes within our company”, Tata Steel said earlier. The manufacturer is then forced to purchase natural gas and coke, which would “have a major adverse effect on our financial position”. The company is not in good financial shape.

Tata Steel states in a press release that it finds the making of this decision painful. According to the group, it is on track to improve these factories. “We do not agree with the content and underlying reason for the notice.”

In addition, the steel company questions the measurements taken at the factories. “The measurements were demonstrably incomplete and incorrectly carried out in several areas.”