Tata Steel is to make 400 people redundant in Port Talbot as part of a restructuring plan intended to enable the group’s UK strip products business to compete in an era of lower demand from Europe by significantly reducing its costs. Karl Koehler, Tata Steel’s European chief executive, said: “We have invested more than £250 million over the last two years in steel-making technology in the strip products business.
In addition, we are currently investing in our Hot Strip Mill in Port Talbot, and we have upgraded our galvanising line in Llanwern, enabling us to increase production of high-value automotive steels.
“These investments have created a stronger, more-efficient and more-reliable platform from which we can meet the needs of our customers, with an improved range and quality of products and services. However, steel demand and prices are likely to be under pressure for some years.
"Our business rates in the UK are much higher than they are in other EU countries, and our UK energy costs will remain uncompetitive until new mitigation measures come into effect. These proposed changes are vital if we are to build a competitive future for our strip products business in the UK.”
Hridayeshwar Jha, director of Tata Strip Products UK, said: “We need to improve our competitiveness and flexibility in a tough market-place, to help us further develop a sustainable steel industry in Wales. These proposals include a review of all our activities; we will be striving to achieve any redundancies voluntarily.”
In 2012, Tata Steel cut 580 jobs in South Wales, including 500 at Port Talbot, to allow it to “successfully perform in changing markets”.