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India’s Tata Steel to slash 3,000 jobs in Europe – report

Tata Steel is planning to cut around 3,000 jobs in Europe, with over half in the Netherlands, a source has told Reuters.

According to the agency, Tata said on Monday that the job cuts are necessary as it wrestles with excess supply and high costs.

But the report said the company insisted there will be no plant closures.

In a statement to Reuters, Tata Steel said that challenging market conditions had been “made worse by the use of Europe as a dumping ground for the world’s excess capacity”.

The move comes 10 weeks after the steel giant announced plans to close two UK operations with the loss of 400 jobs, blaming a failure to sell off its loss-making Orb Electrical Steels business in Newport, South Wales.

The steelworkers’ union accused the company of “breaking its commitments” to the workforce.

Tata employs around 8,000 staff in the Wales.

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All 26 jobs at its Wolverhampton Engineering Steels Service Centre will also be lost.

The Indian corporation began overhauling its European business in June, including its steel-making plants in the Netherlands and Wales and downstream operations across the region.

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‘European steel imports are at their peak’: Liberty House chairman Sanjeev Gupta – September 2019

Tata’s quest to boost profitability follows a European anti-trust decision to block a joint venture with Germany’s Thyssenkrupp in May.

Last week Chinese steelmaker Jingye signed a provisional deal to buy British Steel, after it went into compulsory liquidation in May, safeguarding up to 4,000 jobs.

Jingye said it plans to invest £1.2bn in British Steel over the next decade.

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