Written by: Keith Tully
Reviewed: Monday 18th January, 2016
Tata Steel has confirmed that it will cut 1,050 jobs across several of its UK facilities in an effort to improve the competitiveness of its British operations.
Most of the job losses are to affect staff at the Tata Steel facility in Port Talbot which is the main operating base of its Strip Products UK business.
A total of 750 jobs are to be cut at the site in South Wales, with a further 300 people to be made redundant from Tata sites in Trostre, West Wales, Corby in Northamptonshire and Hartlepool in County Durham.
Tata Steel has described the job losses as being part of a cost-cutting drive focussed on its British operations and prompted by “continued falls in the European steel price caused by a flood of cheap imports, particularly from China”.
“I know this news will be unsettling for all those affected, but these tough actions are critical in the face of extremely difficult market conditions which are expected to continue for the foreseeable future,” said Tata Steel Europe’s chief executive Karl Koehler in a statement.
“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,” he said.
Mr Koehler went on to describe Tata Steel as having been a “hugely supportive investor” in the UK and pointed out that it has invested roughly £1.5 billion into its British operations over the past several decades.
Reflecting on the large-scale job cuts being implemented across his company, Stuart Wilkie, a director at Strip Products UK, said: “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.”
Tata’s steel plant in Port Talbot currently employs more than 4,000 people and is among the largest facilities of its kind in the UK. However, it is reported to be losing its owners in the region of £1 million every day.
If you or your business have been financially affected by the Tata Steel situation or by the downturn in the steel industry on the whole, you can receive free, expert and independent advice from our dedicated support team wherever you are. We have 37 offices across the UK and many of these are assisting individuals and creditors impacted by the financial crisis experienced in the steel and manufacturing sector at present. Call us on 0800 644 6080.
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