Tata Steel lost 2.74% to Rs 241.35 at 15:18 IST on BSE after the company's Long Products Europe business today, 20 October 2015 announced proposals to stop production of steel plate.
Tata Steel made the announcement during market hours today, 20 October 2015.
Meanwhile, the BSE Sensex was down 34.97 points, or 0.13%, to 27,329.95
On BSE, so far 9.84 lakh shares were traded in the counter, compared with an average volume of 13.94 lakh shares in the past one quarter.
The stock hit a high of Rs 249.10 and a low of Rs 240 so far during the day. The stock hit a 52-week high of Rs 495.30 on 3 November 2014. The stock hit a 52-week low of Rs 200 on 29 September 2015.
The large-cap company has an equity capital of Rs 971.22 crore. Face value per share is Rs 10.
Tata Steel said that the company's European business has announced restructuring in response to a shift in market conditions caused by a flood of cheap imports, particularly from China, a strong pound and high electricity costs.
The proposed changes would lead to around 1,200 job losses - about 900 in Scunthorpe and 270 in Scotland as well as a small number at other Long Products Europe sites, Tata Steel said. Plate mills in Scunthorpe, Dalzell and Clydebridge would be mothballed while one of the two coke ovens at the Scunthorpe steelworks would be closed, the company said.
Karl Koehler, Chief Executive of Tata Steel's European operations, said that the UK steel industry is struggling for survival in the face of extremely challenging market conditions. In response, Tata Steel is concentrating on higher-value markets with a focus on developing stronger and lighter products for its customers, Karl Koehler said.
The consultation process with Tata Steel employees and their trade union representatives begins today, 20 October 2015, Tata Steel said.
Tata Steel's consolidated net profit jumped 126.2% to Rs 762.96 crore on 17.7% fall in total income to Rs 31220.93 crore in Q1 June 2015 over Q1 June 2014.
Tata Steel is Europe's second largest steel producer. The combined Tata Steel group is largest steel producer in the world.
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