Tata Steel to cut 900 jobs in Britain

LONDON Fri Nov 23, 2012 4:50pm IST

A labourer works at a Tata steel iron godown in Chandigarh November 9, 2012. REUTERS/Ajay Verma/Files

A labourer works at a Tata steel iron godown in Chandigarh November 9, 2012.

Credit: Reuters/Ajay Verma/Files

Related Topics

Stocks

   

LONDON (Reuters) - Tata Steel(TISC.NS) said on Friday it would cut 900 jobs across Britain as part of a restructuring plan aimed at stemming losses in weak European markets.

The group said 580 jobs would go at its Port Talbot plant in south Wales as part of proposals to restructure its management and administrative functions. It also plans to close 12 steel finishing and processing sites in England and Wales.

"Today's proposals are part of a strategy to transform ourselves into an 'all-weather' steel producer, capable of succeeding in difficult economic conditions," said Karl Koehler, the chief executive of Tata Steel's European operations.

Tata, which supplies steel and related services to construction, automotive and aerospace markets among others, also announced that it would re-start one of two blast furnaces at Port Talbot early next year as part of a 250 million pounds investment programme.

This month the firm swung to a second quarter loss of $67 million, as weakening demand and prices in its main European market, which accounts for around two thirds of its 28 million tonne capacity, offset a solid home performance.

The $500-billion-a-year steel industry has slowed sharply this year as moderation in China's economic growth has compounded weak demand in Europe, forcing the Mumbai-based group, to make a string of cuts in the business.

ArcelorMittal (ISPA.AS), the world's largest steelmaker, recently reported a quarterly loss, while Japan's Nippon Steel & Sumitomo Metal Corp (5401.T) said that profit in the second half of 2012/13 would fall by more than 50 percent from the previous year.

The Tata conglomerate, which bought Anglo-Dutch steel producer Corus for $13.1 billion in 2008, employs some 81,000 staff worldwide.

(Reporting by Neil Maidment; Editing by Rhys Jones)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Economic Pulse

REUTERS SHOWCASE

Apple Result

Apple Result

Apple's iPhone sales beat Street but iPad volumes slide.  Full Article 

Nadella's Paycheck

Nadella's Paycheck

New Microsoft CEO Nadella's pay tops $80 mln with big stock awards.  Full Article 

Deregulation Impact

Deregulation Impact

Private fuel retailers to dip toe, not dive back, into India  Full Article 

Gold Import

Gold Import

RBI will not change gold import rules - sources  Full Article 

Idea Results

Idea Results

Idea Cellular Q2 profit up 69 percent  Full Article 

An RBI First

An RBI First

RBI releases minutes of financial stability council's Aug meet  Full Article 

IBM Earnings

IBM Earnings

IBM ditches 2015 operating EPS target, shares slump 7 pct  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage