Tata Steel announces 900 job losses in the UK
Nov 23, 2012 (Menafn - M2 EQUITYBITES via COMTEX) --Steel maker Tata Steel Limited announced today that it is cutting 900 jobs in the UK, with Wales hardest hit.
The company is planning to restructure management and administrative functions, leading to the loss of 500 jobs at its Port Talbot-based production hub in South Wales. Similar restructuring programmes were launched last year at the company's other two production hubs.
In addition to this, changes will be made at a number of steel finishing and processing sites in the UK in order to concentrate services at six distribution and processing hubs. These will benefit from GBP22m of new investment and new employment, but the changes will also lead to the closure of 12 sites, including Tafarnaubach and Cross Keys in South Wales.
Meanwhile, shift levels at the company's Rotherham and Hartlepool operations will be reduced to match production to lower demand for bar products and pipelines.
Taken together, the proposed changes are expected to lead to a net loss of 900 jobs in the UK, including 580 in South Wales, 155 in Yorkshire, 120 in the West Midlands and 30 in Teesside.
Karl Kohler, CEO of Tata Steel's European operations, said that the subsidiary UK Steel Enterprise would be looking at how it can provide more support to local steel communities and stimulate new jobs.
"We will strengthen this work with a further GBP650,000 to help them create new jobs in affected areas," he added.
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