 "Karl Koehler, CEO of Tata Steel's European operations")
Tata Steel UK, subsidiary of Tata Steel, announced on Monday it would cut 1,050 jobs to save on costs and improve its competitiveness.
The plan would lead to a loss of 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, said Tata Steel in a notification to the exchanges.
The proposed changes come after continued falls in the European steel price in the wake of a flood of cheaper import, particularly from China, said the company. The situation in the industry across the globe had led to it cutting 1,200 jobs in October last year, mainly at its Scunthorpe unit.
A full consultation process with employee representatives will begin immediately, said the country's largest steel producer.
Tata Steel has made an investment of £1.5 billion at its UK operations.
“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 for (this) steel sector. This includes lowering business rates and supporting energy efficiency and anti-dumping cases, so we can compete fairly,” Karl Koehler, chief executive of Tata Steel’s European operations was quoted as saying.
Tata Steel had become the world's fifth largest steel producing company after it acquired Corus in 2007 for a hefty $12.1 billion, its annual capacity rising to 25 million tonnes. The entity was bought in the boom period, at a 34 per cent premium to Tata Steel’s original bid.
