Steel crisis grows as Tata axes 1,200 jobs
FEARS about fresh job losses in the steel industry have been confirmed after Tata announced plans to cut 1,200 posts.
Around 900 jobs will be cut from the firm’s giant plant in Scunthorpe.
Another 270 jobs will go in Scotland and a small number in other sites.
Tata said the cuts were in response to a shift in market conditions caused by a “flood” of cheap imports, particularly from China, a strong pound and high electricity prices.
The latest bad news follows the announcement that the Thai owners of the Redcar steelworks on Teesside, SSI, had gone into liquidation with the loss of 2,200 jobs.
Then Caparo went into administration.
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.”