Tata Steel to mothball plant in south Wales

Tata Steel said on Wednesday none of its 1,500 staff would be made redundant and they would be redeployed around the business but it is understood that hundreds of contract staff will see their jobs disappear. “The changes we have told employees about will reduce our costs and enable us to focus on generating more value from our products, which will improve our competitiveness”.

Britain’s largest steelmaker is to mothball a plant in south Wales as tough markets persist, forcing the company to focus on higher-value products.

“In the past year, we have also been making positive improvements to our manufacturing capability”, Stuart Wilkie, director of Tata Steel’s Strip Products UK business, said in a statement on Wednesday.

Tata previously revealed it is restructuring its speciality and bar business, putting 720 jobs at risk, as it battles rising imports and higher electricity costs. GMB will propose that the Trades Unions Steel Committee write to Prime Minister David Cameron requesting a meeting to discuss these concerns over the long-term future.

“Energy intensive industries need access to affordable and secure energy”.

Imports of cheap steel have put pressure on Britain’s domestic industry. “However it is extremely regretful that most of those to be laid-off are highly motivated and committed young people, now employed through an agency but who hoped to pursue a career within Tata Steel”. “We have repeatedly lobbied the UK government for urgent action to address issues such as high energy costs that are disadvantaging the steel industry across the UK against our overseas competitors”, he said.

It is only a few months since the Unite union balloted its 6,000 members at Tata Steel over its plan to close the British Steel pension scheme, but the two sides eventually reached a peaceful settlement.

The posts are mainly at its bar division, in Rotherham, South Yorkshire.