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Faced with an extended downturn in demand for its key products, Tata Steel Europe has said it is restructuring its long products business — which makes tubes, rails and rods, used in many industrial sectors. The move could result in a loss of around 500 jobs.
The restructuring could strengthen competitiveness, the company said in a notification to the BSE exchange on Tuesday. 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 of Tata Steel’s European operations.
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“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, the labour union concerned, 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."
Koehler said: “We will 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.”
