Amid a prolonged downturn in demand for some of its key products, Tata Steel Europe on Tuesday announced major restructuring proposals to boost its competitiveness that could lead to the loss of around 500 jobs in the UK.
The proposed changes in long products business will predominately affect management and administrative functions at sites in Scunthorpe, Teesside and Workington.
About 340 positions could be affected in Scunthorpe, 90 in Workington and 40 in Teesside, Tata steel said in a release on Tuesday.
The proposals come amid a prolonged downturn in demand for some of the key products made by the Scunthorpe-based business, including the UK market for construction steel, which is about half of 2007 levels.
Karl Koehler, CEO of Tata Steels European operations, said, ‘European steel demand this year is expected to be only two-thirds of pre-crisis levels after falls in the past two years. On top of the challenging economic conditions, rules covering energy and the environment in Europe and the UK threaten to impose huge additional costs on the steel industry.’
The proposed changes in long products business will predominately affect management and administrative functions at sites in Scunthorpe, Teesside and Workington.
About 340 positions could be affected in Scunthorpe, 90 in Workington and 40 in Teesside, Tata steel said in a release on Tuesday.
The proposals come amid a prolonged downturn in demand for some of the key products made by the Scunthorpe-based business, including the UK market for construction steel, which is about half of 2007 levels.
Karl Koehler, CEO of Tata Steels European operations, said, ‘European steel demand this year is expected to be only two-thirds of pre-crisis levels after falls in the past two years. On top of the challenging economic conditions, rules covering energy and the environment in Europe and the UK threaten to impose huge additional costs on the steel industry.’