Tata Steel’s tubes business revamp in Europe to cost 200 jobs
25 Jan 2012
Tata Steel has proposed a recovery plan for its tubes business in Europe that could affect 200 jobs across four plants - the Corby plant in the UK and three units in the Netherlands.
Tata Steel said the recovery plan, which aims at efficiency improvement and cost reductions, would match business operations to current and projected market demand in the foreseeable future.
Once implemented, Tata Steel expects the plan to enable the business to withstand the current weak economic conditions and restore its profitability.
Four of the company's tubes sites in the UK and the Netherlands will be affected, the company said in a filing with the Bombay Stock Exchange (BSE).
The recovery plan, once implemented, will lead to loss of 110 jobs at Corby in the UK while in the Netherlands it expects loss of 17 jobs in Zwijndrechi, 28 in Maastricht and 45 in Oosterhout.
"Our announcement today follows a detailed review of all our European tube activities. In response to the prolonged downturn in all European markets for tubes, and in the context of intense competition, the measures announced today are designed to bring these sites into sustainable financial position," Remco Blaauw, managing director of Tata Steel's European steel business, said.