Aiming to revive its loss-making long-product business in Europe, Tata Steel on Friday said it plans to invest 400 million over five years, shut or mothball parts of Scunthrope plant and slash 1,500 jobs in England. The steps were necessitated, it said in a release, in the wake of successive loss incurred in the past two years by the unit over sluggish demand from UK's construction sector.
"Tata Steel has proposed a restructuring of its long products business to target high-value markets and introduce greater flexibility into its costs and operations. To support this strategy, Tata Steel plans to invest 400 million over a five-year
period," it said.
Demand for structural steel in the UK is only two-thirds on the 2007 level and is not expected to fully recover within the next years, the statement said.
"As a consequence, the business has proposed a plan to further reduce costs, focus on products that create value and improve its ability to respond quickly to demand fluctuations.
"The strategy includes a proposal to close or mothball parts of the Scunthrope plant and put at risk 1,200 jobs at Scunthrope and 300 jobs at the Teesside sites," it added.
