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Tata Steel announces 900 UK job cuts

Nearly two-thirds of the jobs cut will be at operations in Wales

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Indian giant Tata Steel announced 900 job cuts at its UK facilities on Friday.

Nearly 600 of the job losses would be at the steel conglomerate’s Welsh operations in Port Talbot, Llanwern near Newport. Most of the cuts would be in managerial and administrative functions.

The company also said smaller operations in Crosskeys, Caerphilly County, and one facility near Tredegar in Blaenau Gwent will close.

Cuts outside of Wales include 155 in Yorkshire, 120 in the West Midlands and 30 on Teesside. Additionally, staffing levels at the company's Rotherham and Hartlepool plants will be reduced to match production levels in response to lower demand for steel products.

However, a spokesperson also said that the company intends to re-ignite one of its two blast furnaces at Port Talbot over the first quarter of 2013. This was part of a £250 million investment programme initiated by Tata Steel.

Karl Kohler, chief executive of Tata Steel's European operations, said the move was part of a strategy to transform the company into an all-weather steel producer, capable of succeeding in difficult economic conditions. "These restructuring proposals will help make our business more successful and sustainable, but the job losses are regrettable and I know this will be a difficult and unsettling time for the employees and their families affected."

Kohler added that the company would be working with trade unions and government at a national and local level to ensure it provides those who are about to lose their jobs with as much assistance and support as possible.

"In addition, our subsidiary UK Steel Enterprise will be looking at how it can provide more support to local steel communities and stimulate new jobs following today's announcement. We will strengthen this work with a further £650,000 to help them create new jobs in affected areas."


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