News

More jobs to be axed as steel industry crisis intensifies

The latest Tata Steel job cuts mean more than 5,000 jobs have been lost under the pressure of cheap Chinese imports [1].

Tata has recently cut another 1,050 jobs from sites across the country, including 750 at Port Talbot, which is the biggest steel plant in the UK, along with 200 support jobs and 100 jobs across three large mills [2].

Even after calling for action on cheap imports back in November, Port Talbot is said to be losing about £1m every week [1].

According to the company, the cuts are a cost-saving move intended to improve competitiveness following the falling European steel prices “caused by a flood of cheap imports, particularly from China” [2].

Karl Koehler, Chief Executive of Tata’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” [1].

Koehler also called for action from the European Union to fight the stream of steel imports, which they are struggling to contend with.

The Director of UK Steel, Gareth Stace, says the job losses should be a “wake-up call again to the government” [2].

The government has said it is “meeting key steel industry asks” through cutting energy costs and taking action on imports and EU emissions regulations [2].

A Business Department spokesman has said they are currently monitoring Tata closely and aim to help them during this difficult period.

 

[1] The Telegraph. ‘Tata confirms 1,050 more jobs to go as steel crisis intensifies’. telegraph.co.uk

[2] BBC News. ‘Tata Steel confirms 1,050 job cuts’. bbc.co.uk