Tata Steel to cut 1,050 UK jobs as cheap imports flood market

Indian-owned Tata Steel UK said on Monday that it plans to cut 1,050 jobs.

The company, which already axed 1,200 jobs at its Scunthorpe and Lanarkshire plants in October, will cut 750 jobs at its Port Talbot-based strips products business, 200 in support functions and a further 100 at steel mills in Trostre, Corby and Hartlepool.

Tata attributed the move to declining steel prices 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.”

Koehler welcomed progress on UK energy costs but said 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,” he said.

Gareth Stace, director of UK Steel, said: “The job cuts reinforce everything we have been saying about the importance of swift action by all involved to tackle the problems facing our steel industry.

“We have been dealing for some time with a toxic cocktail of conditions, from Chinese dumping of steel to the high cost of energy, and have warned that a strong and rapid response in the UK and, in Brussels, is required.”

CBI Wales director Emma Watkins said: ““These job losses are a real setback to the Welsh economy and it’s clear that firms in our steel industry face major global challenges to stay competitive.

“Our industrial base can best be supported by developing a long-term industrial strategy, protecting research and development investment to help raise productivity and making energy costs more competitive.”