The CEO and Managing Director of Tata Steel’s European division Karl Koehler is to step down, the steel giant said on Wednesday. Koushik Chatterjee, Group Executive Director, will become Tata Steel’s Executive Director for Europe, while Hans Fischer, the current Chief Technology Officer of Tata Steel Europe will step in as Chief Executive. “The last six years have been a challenging journey of change for Tata Steel in Europe as it dealt with unprecedented market conditions,” said Koehler, who is set to take up a role with an unnamed privately-owned industrial company in Germany, and will remain with Tata Steel in an advisory capacity for a short period. “I believe the new leadership of Tata Steel Europe will continue the journey of making company stronger in the challenging times the European steel industry is facing.”

The past year has been a tumultuous one for Europe’s steel industry, whose existing problems of over capacity have been exacerbated by a glut of cheap Chinese exports onto the European market, forcing companies across the continent to cut jobs, mothball or close plants, and causing financial losses. In the past eight months 7,000 jobs have gone across the continent, according to industry body Eurofer. Tata Steel cut 1,050 European jobs in January, following 1,200 job cuts at its long products division last year. Responding to the appointments the Community steel union said they stood ready to work with Fischer to overcome the challenges facing the industry and called on the company to set out its ongoing commitment to steel making in Britain and Europe. They added a note of caution. “It is a concern that Tata Steel Europe’s CEO will no longer have a seat on the Tata Steel board in India, and we will be seeking further clarification on this decision.”

Related Topics