Tata Steel to cut 1,200 jobs in Scunthorpe and Lanarkshire

Tata Steel is set to unveil plans for further job cuts at two of its plants, in a fresh blow to the steel sector.

The group is expected to cut 1,200 jobs across its plants in Scunthorpe and Lanarkshire, which are part of a division the group failed to sell earlier this year.

The Indian-owned group said most of the cuts will affect its Scunthorpe plant, which employs approximately 4,000 workers, although two of its site in Lanarkshire will also be affected.

Last month, the SSI steel plant at Redcar shut its doors, leading to the loss of about 2,200 jobs, while parts of steel processing firm Carparo entered administration on Monday.

“Our fears about further job losses have now been confirmed.

If we are to stem this tide then the Business Secretary must now deliver as a matter of urgency the commitments he made at last week’s summit, on energy costs, Business Rates costs and tackling unfair trade,” said Gareth Stace, director of UK Steel.

“In addition, we must also see a commitment from all parts of government at the highest level to ensure the sector’s survival in the UK.”

Stace added the government had to step in to rescue a sector that employs only 30,000 workers compared to the 200,000 people that worked in the industry in the 1970s.

“The Prime Minister can demonstrate that he is prepared to lead this commitment by stepping in this week and pressing the Chinese Premier about the dumping of under-priced steel which is one of the major factors killing our industry,” he said.