Cuts to fall in its ‘Long Products’ business that serves the construction sector
Tata Steel has announced it could axe around 500 jobs in its Long Products business, which produces construction steel.
About 340 positions could be affected in Scunthorpe, 90 in Workington and 40 in Teesside.
The company blamed the “prolonged downturn in demand” for key products, including the UK market for construction steel, which is about half of 2007 levels.
Tata Steel said the restructuring proposals would “help strengthen its competitiveness”
Karl Koehler, chief executive of Tata Steel’s European operations, said: “European steel demand this year is expected to be only two-thirds of pre-crisis levels after falls in the past two years.
“On top of the challenging economic conditions, rules covering energy and the environment in Europe and the UK threaten to impose huge additional costs on the steel industry.
“As difficult as the proposed changes are, they are intended to build a stronger future by enabling the Long Products business to compete in even the current challenging economic and regulatory conditions.
“We will of course engage fully with employees, trade unions and our political stakeholders during this restructuring process. We will do everything we can to support our employees through this unsettling time.”