Tata Steel, on Tuesday, said it would cut an estimated 400 jobs at its plant in the U.K. as part of the company’s restructuring process and to increase competitiveness amid sluggish demand.
Chief Executive Karl Koehler said the changes at the Port Talbot plant in Wales were vital if Tata Steel, the world’s 12th largest steelmaker, was to remain competitive.
The proposed changes are aimed at enabling the U.K. Strip Products business to compete in Europe’s lower market demand era by reducing costs.
“These proposed changes are vital if we are to build a competitive future for our Strip Products business in the U.K. We will, of course, engage fully with employees, trade unions and our political stakeholders during this restructuring process. And we will do everything we can to support our employees through this unsettling time,” Mr. Koehler said. He added, “We have invested more than 250 million pound over the last two years in state-of-the-art steelmaking technology in the Strip Products business. In addition, we are currently investing in our hot strip mill in Port Talbot, and we have upgraded our galvanising line in Llanwern, enabling us to increase production of high-value automotive steels.
Roy Rickhuss, Chair of the U.K. trade unions’ steel committee expressed concern over the news.
