Tata Steel UK Limited, a subsidiary of India-based Tata Steel Limited, has announced cost-saving proposals to improve the competitiveness of its UK business, which is affected by the continued falls in the European steel price caused by a flood of cheap imports, particularly from China. The plans would lead to the loss of approximately 1,050 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.
“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. And while we welcome progress on UK energy costs, the government must take urgent action to increase the competitiveness of the UK in its vital steel sector. This includes lowering business rates and supporting energy efficiency and antidumping cases so we can compete fairly,” stated Karl Koehler, chief executive of Tata Steel’s European operations.
Meanwhile, UK Steel Enterprise, the subsidiary of Tata Steel tasked with helping the economic regeneration of communities affected by changes in the steel industry, will look at how it can provide more support to the local communities affected by today’s announcement and help stimulate new job creation in those areas. Over the last four decades, the company has helped to regenerate local economies, including South Wales, with £88 million of support and created more than 75,000 new jobs across the UK.