Tata Steel to cut jobs at Port Talbot plant
18 Jan 2016
Tata Steel has announced a further 1050 job cuts, as the steel industry crisis continues to deepen in the UK.
The company said its Port Talbot plant would bear most of the brunt of the latest round of cuts, with 750 job losses at the Strip Products UK business.
It will also cut 200 jobs in support functions and a further 100 jobs at steel mills in Trostre, Corby and Hartlepool.
The latest job losses - which follow 1,200 job cuts in the north of England and Scotland late last year - are the result of the flood of cheap imports from China, Tata Steel said.
“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 Karl Koehler, chief executive of Tata Steel’s European 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.”
He also urged the UK government to take urgent action to increase the competitiveness of the steel sector.
Teesside’s Redcar plant was forced to close last year with the loss of 2,200 jobs, as the result of tough trading conditions in the sector.
Following a crisis summit with key industry players late last year, the government won EU approval to provide compensation to the industry to offset high environmental levies.
“The whole industry needs to be reassured that ministers and officials – in Westminster and in Cardiff – are doing everything possible to support the future of steel production,” said Gareth Stace, director of industry lobby group UK Steel.
“The Government’s review of business rates could significantly reduce the multi-million-pound bill the plant has to pay while ministers should also consider offering grants that would help the site improve its long term sustainability.”
