Tata Steel's UK plant to axe approximately 400 jobs

London: Tata Steel is to cut an estimated 400jobs at its plant in the UK as part of the company’srestructuring process and to increase competitiveness amidsluggish demand.

Chief executive Karl Koehler said the changes at the PortTalbot plant in Wales were vital if Tata Steel, the world’s
12th largest steelmaker, was to remain competitive.

The proposed changes are aimed at enabling the UK StripProducts business to compete in Europe’s lower market demandera by reducing costs.

[caption id=“attachment_89480” align=“alignleft” width=“380”] Reuters image[/caption]

“These proposed changes are vital if we are to build acompetitive future for our Strip Products business in the UK.
We will, of course, engage fully with employees, trade unionsand our political stakeholders during this restructuringprocess. And we will do everything we can to support ouremployees through this unsettling time,” Koehler said.

He added, “We have invested more than 250 million poundsover the last two years in state-of-the-art steelmaking
technology in the Strip Products business. In addition, we arecurrently investing in our Hot Strip Mill in Port Talbot andwe have upgraded our galvanising line in Llanwern enabling usto increase production of high-value automotive steels.”

“These investments have created a stronger, more efficientand more reliable platform from which we can meet the needs ofour customers, with an improved range and quality of productsand services. But steel demand and prices are likely to beunder pressure for some years.

“Our business rates in the UK are much higher than otherEU countries’ and our UK energy costs will remain
uncompetitive until new mitigation measures come into effect.”

Roy Rickhuss, chair of the UK trade unions’ steelcommittee made up of the Community, Unite and GMB unions,
expressed concern over the news.

“We recognise the company has been dealing with along-term downturn in European steel markets for more than
five years. However we have also expressed our own concernsabout possible under-manning within Strip Products and in PortTalbot in particular.

“Therefore, it is vital that this is not just an exerciseto reduce costs by cutting jobs but takes a considered and
objective view as to the numbers required to run and maintainthe plant to make steel safely and productively,” he said.

Hridayeshwar Jha, director of Strip Products UK, added"This business has achieved some notable technical and
engineering successes in recent years. We have introduced newhigh-value products for customers and we have proved we canproduce reliably”.

“But we need to improve our competitiveness andflexibility in a tough marketplace to help us further develop
a sustainable steel industry in Wales. Today’s proposalsinclude a review of all our activities in manufacturing,
engineering, technical and the support functions. We will bestriving to achieve any redundancies voluntarily.”

A consultation process, which will take over 45 days, willbegin soon with affected employees and their representatives.

PTI