Tata Steel to cut 1500 more jobs in UK
Producers in Western Europe are looking for higher value products other than steel because big steel Era is over in Western Europe, said by the Indian steelmaker who transformed the specialty steel business of Tata.
From long time steel is facing lower demand from producers of aerospace, oil , gas and bearing industries and Mark Broxholme, who runs the UK-based division that makes steel from recycled scrap said that declining demand and higher energy costs mean steelmaking has changed for good.
The steel making unit in Europe is facing losses and to turn around its position and for its restructuring Tata Steel invest £400 million over the next five years and would cut 1,500 jobs.
From past two years, steel unit making long products for construction business has been incurring losses due to fall in the demand.
The restructuring includes closing down of some parts of the Scunthrope plant and cutting 1200 jobs at Scunthrope and 300 jobs at the Teesside sites.
It said that areas which will suffer job risk are operational, functional and management positions and the affected employees and union representatives have to go through a 90 day consultation process, which will begin soon.
It is also revealed in the statement that demand for structural steel in the UK is only two-thirds of the 2007 level and there are less chances of recovery.
Moreover, company is sharing its concerns with employees at job risks and promised to do everything to provide support and assistance.
