Tata Steel announces 900 job cuts across UK as a part of major restructuring to battle “difficult” economic conditions. Indian steel giant confirmed today that it will close 12 plants in Britain, which will result in job losses, including 580 in South Wales, 155 in Yorkshire, 120 in the West Midlands and 30 on Teesside.
Tata UK steel business, which employs 19,000 people, announced restructuring proposals to “improve the competitiveness of its UK operations”.
Closing 12 sites on Tata Steel includes Tafarnaubach and Cross Keys in South Wales. Tata Steel also plans to reduce shift levels at its Rotherham and Hartlepool plants due to dipping demand of bar products and pipelines.
Tata Steel profits in the first half of 2012 fell from £657,235,950 last year to £27,586,196 this year. Moreover, Tata confirmed that demand for steel in Europe had dipped by 25% since 2007 and is expected to slump by another 10% this year.
“These restructuring proposals will help make our business more successful and sustainable, but the job losses are regrettable and I know this will be a difficult and unsettling time for the employees and their families affected,” said Karl-Ulrich Koehler, chief executive of Tata Steel’s European operations.
Among news of job cuts, Tata Steel also announced its plan to re-start one of two blast furnaces at Port Talbot in the first quarter of next year as part of a £250m investment programme. India-owned steel company also intends to create 120 jobs at a new hot strip rolling mill at Llanwern.
Karl-Ulrich Koehler promised £650,000 investment for creating new jobs in affected areas, adding “UK Steel Enterprise has teams in all the affected locations who, for almost four decades, have helped to regenerate local economies and create 70,000 new jobs in the UK.”