Tata Steel to cut 1,050 jobs in UK

Hit by rising imports and falling prices, besides challenges to cut costs, Tata Steel has decided to axe 1,050 jobs in UK.

Tata Steel UK, an indirect subsidiary of Tata Steel, has announced cost-saving proposals to improve the competitiveness of its UK business. The plans would lead to the loss of 1,050 jobs – 750 jobs at its Port Talbot-based Strip Products UK business, 200 jobs in support functions and a further 100 jobs at steel mills in Trostre, Corby and Hartlepool, the company said.

The proposed changes follow continued falls in the European steel price caused by a flood of cheap imports, particularly from China. A full consultation process with employee representatives will begin immediately, the company added.

“These tough actions are critical in the face of extremely difficult market conditions, which are expected to continue for the foreseeable future,” Tata Steel European operations chief executive Karl Koehler said.

We need the European Commission to accelerate its response to unfairly traded imports and increase the robustness of its actions. Not doing so threatens the future of the entire European steel industry, Koehler added.

“We have to accelerate the changes we announced last August, by lowering our costs at the same time as focusing on manufacturing higher-value products. These are urgent steps needed to give this business a chance of survival. We will work closely with affected employees and their trade union representatives. Retaining the right skills for the future will be critical, but we will look to minimise employee hardship and redeploy employees where possible,” director of Strip Products UK, Stuart Wilkie said.