Tata confirm 900 job losses in Scunthorpe

TATA STEEL has confirmed that 900 job losses will occur at its Scunthorpe site as it announces that it will be stopping production of steel plate.

Tata Steel’s Long Products Europe business said this was a “response to a shift in market conditions caused by a flood of cheap imports, particularly from China, a strong pound and high electricity costs.”

Overall there will be 1,200 job losses, the majority in Scunthorpe and 270 in Scotland as well as a small number at other Long Products Europe sites.

Plate mills in Scunthorpe, Dalzell and Clydebridge are set to be shut down, as are two coke ovens at the Scunthorpe steelworks.

Karl Koehler, chief executive of Tata Steel’s European operations, said: “I realise how distressing this news will be for all those affected. We have looked at all other options before proposing these changes.

“We will work closely with affected employees and their trade union representatives. We will look to redeploy employees, wherever possible, and minimise employee hardship.

“The UK steel industry is struggling for survival in the face of extremely challenging market conditions. This industry has a crucial role to play in rebalancing the UK economy, but we need a fairer system to encourage growth. The European Commission needs to do much more to deal with unfairly traded imports – inaction threatens the future of the entire European steel industry.”

Bimlendra Jha, executive chairman of the stand-alone Long Products Europe business, said: “Today’s proposals mark the next step in reshaping our business to give it the best chance of survival in this fiercely-competitive global marketplace.

“We are looking closely at the performance of all parts of Long Products Europe as part of a focus on returning to profitability.”

Tata Steel’s subsidiary 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.