Jamshedpur, June 21: Tayo Rolls, a subsidiary of Tata Steel, is working hard to adjust its skilled workforce in other forge and foundry companies before closure of its operation.
Interacting with media at JRD Tata Sports Complex conference room on Tuesday, Tayo Rolls managing director K Shankar Marar said that they are concerned about the workforce and they have shared academic information of its skilled workforce with several placement agencies and also with CII for adjustment in similar industries across the country.
“We want to ensure that skilled workforce of our unit are placed suitably in other companies with similar activities and have already shared database of our employees with placement agencies and hope that they are placed suitably before Board for Industrial and Financial Reconstruction (BIFR) appoints an operating agency and declares our unit as closed.
We are also in talk with CII state chapter for adjustment in industries in the state,” said Marar.
It may be mentioned that there are round 674 employees and 195 officers with Tayo Rolls, which had to be registered for BIFR in February ( as per company’s act) after the company net worth was reported zero in third quarter result (December 2015) leading to the company being declared as ‘sick’.
The managing director claimed that the board has been working hard to cope with the financial losses for the last eight-nine years and had explored every means for revival with huge support from Tata Steel (to the tune of over Rs 325 crore).
“Though Tata Steel supported us and we had an accumulated loss of over Rs 400 crore. This happened due to the delay in commissioning of our forged roll mills from 2008 to 2011 as the Korean company could not install software for automation and even the heat treatment furnace could not be commissioned as a foreign company commissioning it went bankrupt”, Marar said.
“We are concerned of our workers. With the voluntary separation scheme (VSS) we want the employees to have better compensation with separation package along with housing facilities being retained for nine months and medical facilities for dependents,” the MD added.
Tayo Rolls Limited (formerly Tata-Yodogawa Limited) is a metal fabrication and processing company headquartered in Jamshedpur and a subsidiary of Tata Steel. Tayo Rolls’ products are primarily cast rolls, forged rolls, special castings and pig iron.
It was promoted in 1968 in collaboration with Yodogawa Steel Works of Japan. It is the only company in the world to manufacture both cast and forged rolls right from iron ore with its integrated facilities under one roof.
But after 2008, the company continued to incur heavy loss every year and finally the Board of Directors in February decided to refer the company to Board for Industrial and Financial Reconstruction (BIFR). Moreover, on May 26, the board of directors decided to introduce VSS.
According to a senior official of the company, the board of directors of the company at its meeting held on May 26, 2016 approved the proposal to introduce employees VSS with immediate effect, and to suspend operations in a phased manner.