New Delhi, April 15 -- When the going gets tough, the tough get going, and that's what Tata Steel Ltd is doing. Last week, Tata Steel Nederland announced a crucial transformation programme aimed mainly at reducing costs in the backdrop of tightening spreads in the European steel market.

High energy and carbon costs in recent years have put steel spot spreads under pressure in Europe. As a report by Axis Securities points out, steel spot spreads in Europe were at a multiyear low in Q3FY25 at €170 a tonne versus historical average of €240 a tonne.

Tata Steel's decision may also have been necessitated by the US's 25% tariff imposition on steel imports. The company's Netherlands plant exports about 670,000 tonnes annually out of...