ALSO READBSE to drop Financial Technologies from SLB segment from Nov 8 Ranbaxy Labs reported a loss of Rs 454 crore for the third quarter Foreign exchange loss hurts JSW Steel's Jul-Sep net profit Tata Steel Europe announces restructuring, to cut 500 jobs Shriram Transport Finance Q2 Net dips to Rs 351.93 cr
An extended downturn in demand for some of the key steel products made by Tata Steel Europe has led to an announcement of restructuring proposals by the company which could lead to a loss of around 500 jobs.
Restructuring of the long products business could strengthen competiveness, said Tata Steel in a notification to the BSE today.
About 340 positions could be affected at sites in Scunthorpe, 90 in Workington and 40 in Teesside, said the company.
"European steel demand this year is expected to be only two-thirds of pre-crisis levels after falls in the past two years," the release said quoting Karl Koehler, chief executive officer of Tata Steel's European operations.
"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," said Koehler.
Michael Leahy, General Secretary of Community and Chair of the UK Steel unions' Committee said, "We are obviously very concerned to hear this news and are doing all we can to support those affected by the announcement."
"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," said Koehler of Tata Steel Europe.
Long products of steel find wide application in the construction segment.