Cuts to fall in its 鈥楲ong Products鈥� business that serves the construction sector
Tata Steel has announced it could axe around 500 jobs in its Long Products business, which produces construction steel.
About 340 positions could be affected in Scunthorpe, 90 in Workington and 40 in Teesside.
The company blamed the 鈥減rolonged downturn in demand鈥� for key products, including the UK market for construction steel, which is about half of 2007 levels.
Tata Steel said the restructuring proposals would 鈥渉elp strengthen its competitiveness鈥�
Karl Koehler, chief executive of Tata Steel鈥檚 European operations, said: 鈥淓uropean steel demand this year is expected to be only two-thirds of pre-crisis levels after falls in the past two years.
鈥淥n top of the challenging economic conditions, rules covering energy and the environment in Europe and the UK threaten to impose huge additional costs on the steel industry.
鈥淎s 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.
鈥淲e 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.鈥�
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