The Chief Executive Officer (CEO) of Tata Steel's embattled European arm, Tata Steel Europe, Karl Koehler has resigned from his post, effective February 29.
Koehler, who was appointed as CEO and Managing Director of Tata Steel Europe in October 1, 2010, will also step down as the member of the Tata Steel's Board of Directors.
"Karl Koehler, member of the Board of Directors of the company has decided to step down from the Board, effective February 29, 2016," Tata Steel said in a regulatory filing.
"Effective the same day, Koehler has also decided to step down as the CEO and Managing Director of Tata Steel Europe (company's subsidiary)," it added.
The development comes at a time when Tata Steel announced last month that it will cut 1,050 jobs in the UK, including the country's biggest steel plant, as part of its broader cost-reduction plan amid "unfair" steel imports from China.
The restructuring and "cost-saving" proposal comes over and above the October 2015 lay-off of 1,200 roles employed by Britain's biggest steelmaker, that also appealed to the EU to take urgent action to check the imports in the country for a level-playing field.
Koehler, a former member of the executive committee of industry body World Steel Association, was Vice Chairman of VDEh, the German Iron and Steel Institute.
During his over 30-year steel career, he has worked as a member of the Executive Board of ThyssenKrupp AG and has also been President of Eurofer or European steelmaking federation.
Javid, who is likely to attend Tata Steel board meeting
tomorrow, had announced earlier that the British government is willing to take an equity stake of up to 25 per cent alongside a new owner and offer "hundreds of millions" in financial support in an effort to save the British steel industry, which is struggling under the pressure of cheap Chinese exports and high energy costs.
The Tatas had acquired as Corus Steel in April 2007 at the peak of commodity price hike cycle for over USD 12 billion, but has since then never been able to turn it around.
Tata Steel UK employs around 15,000 people and the British government is keen to save these jobs in an already bad economic environment.
Tata Steel Europe had announced its plans to sell its UK steel business last week after a "strategic review" by its board, throwing the industry into chaos. The company since the acquisition has sunk over 3 billion pounds into the company that has been hit by Chinese dumping and a massive 30 per cent fall in demand since the 2008 global financial crisis.
The British government in a statement said "the meeting with the Tatas in Mumbai follows constructive meetings in London with trade unions, the EEF and UK Steel this week."
Earlier, British prime minister David Cameron had become personally involved in trying to work out a solution to the crisis triggered as a result of a combination of cheap imports from China, falling global demand, high energy prices and a tougher tax regime than many rival nations. But his government is not ready to impose higher tariffs on Chinese steel.
