MUMBAI, July 1 Tata Steel said on
Tuesday it will cut about 400 jobs at its Port Talbot plant in
South Wales, around 10 percent of the workforce, as it looks to
reduce costs to compete better in the strip products business in
Under the company's new management, Tata Steel has
intensified cost cuts and focused on high-margin products to
cope with soft demand in Europe, its biggest market.
Karl Koehler, chief executive of Tata Steel Europe, said in
a statement the measures were "vital if we are to build a
competitive future for our Strip Products business in the UK".
Koehler added that steel demand and prices were likely to be
under pressure for some years.
Tata Steel got a foothold in Europe through its $13 billion
acquisition of Britain's Corus in 2007.
"We will be seeking an urgent meeting with the company to
discuss our concerns about manning levels and reiterate our
opposition to any compulsory redundancies," Roy Rickhuss, chair
of the UK trade unions' steel committee said in a statement.
Hywel Francis, the local member of parliament and David
Rees, member of the Welsh assembly, said in a statement: "We
wish to place on record our continued faith in steel making at
Port Talbot and we urge government at local, Welsh and UK level
to work with Tata and the unions to achieve this."
(Reporting by Aman Shah in Mumbai and Maytaal Angel in London,
editing by David Evans)