The company says the proposed cuts are a cost-saving measure to improve the competitiveness of its UK business following continued falls in the European steel price caused by a flood of cheap imports, particularly from China.
Karl Koehler, chief executive of Tata Steel’s European operations, said: “I know this news will be unsettling for all those affected, but these tough actions are critical in the face of extremely difficult market conditions which are expected to continue for the foreseeable future.
“We need the European Commission to accelerate its response to unfairly traded imports and increase the robustness of its actions. Not doing so threatens the future of the entire European steel industry. And while we welcome progress on UK energy costs, the Government must take urgent action to increase the competitiveness of the UK for its vital steel sector. This includes lowering business rates and supporting energy efficiency and anti-dumping cases so we can compete fairly.”
Stuart Wilkie, director of strip products UK, said: “We have to accelerate the changes we announced last August, by lowering our costs at the same time as focusing on manufacturing higher-value products. These are urgent steps needed to give this business a chance of survival.
“We will work closely with affected employees and their trade union representatives. Retaining the right skills for the future will be critical, but we will look to minimise employee hardship and redeploy employees where possible.”
A full consultation process with employee representatives is due to begin immediately.
Wales’ First Minister, Carwyn Jones said: “The fundamental questions facing steel production in Wales go far beyond our devolved responsibilities. I now call on the UK Government to step up and play its part. Now is the time for swift decisive action.”
Prime Minister, David Cameron said that the Government has taken action in the European Union on energy prices and procuring more British steel. “We will continue to work with them,” he said. “I want to have a strong British steel industry at the heart of our important manufacturing base.”
Tata Steel’s regeneration arm, UK Steel Enterprise, will look at how it can provide more support to the local communities affected by today’s announcement and help stimulate new job creation in those areas.
