Indian steelmaker Tata Steel has announced restructuring proposals to improve the competitiveness of its South Wales steelmaking business, resulting in 400 job losses in Port Talbot. The company said that these proposed changes will enable the UK Strip Products business to compete in Europe's lower market demand era by reducing costs.
Karl Koehler, Tata Steel's European chief executive, said that the company has invested more than £250 million over the last two years in the strip products business and is currently investing in its hot strip mill in Port Talbot. In addition, the upgrade in the galvanizing line in Llanwern enabled increases production of high-value automotive steels.
"But steel demand and prices are likely to be under pressure for some years. Our business rates in the UK are much higher than other EU countries' and our UK energy costs will remain uncompetitive until new mitigation measures come into effect," Koehler added.