Tata Steel proposes 900 job cuts in the UK

MUMBAI: In a forced reaction to the four-year long slowdown in the UK steel making industry, Tata Steel today announced restructuring plans, which will lead to the loss of about 900 jobs in the UK, including 580 in South Wales, 155 in Yorkshire, 120 in the West Midlands and 30 in Teesside.

The company, which had an employee count of 81622 as on March 2012, spends about 12-14% of its total revenue on staff costs on a consolidated basis.

The company also announced it plans to restart Blast Furnace 4 – one of two blast furnaces in Port Talbot, South Wales, which is being rebuilt as part of a £250 million investment programme – in the first quarter of 2013. It will also lead to the restarting of the hot strip mill at the company’s Llanwern site in Newport, South Wales.

Two weeks ago, the company reported a loss of Rs 363.93 crore for the quarter ended September 2012, mainly on account of poor performance of its Europe division. The European operations of Tata Steel, which contributes three-fifths to the company’s consolidated revenue, comprise Europe's second largest steel producer.

During the quarter steel production and deliveries were lower than the year ago period for Tata Steel Europe which supplies steel and related services to the construction, automotive, packaging, lifting & excavating, energy & power, aerospace sectors.

Its stock has lost 7% of its market value since it announced its September quarter results.