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Tata Steel says posts could be cut at Redcar and Skinningrove sites
A STEELMAKER has revealed plans to cut North-East jobs.
Tata Steel, which employs more than 1,500 workers in the region, says 40 posts could be axed across its Redcar site, where it runs the Teesside Beam Mill, and its plant in Skinningrove, east Cleveland, which provides steel for track shoes on earth moving vehicles.
Bosses say they have been forced to make changes to its Long Products division after suffered a prolonged drop in demand for European steel, particularly in the UK construction market.
Under the plans, the company would cut about 500 jobs, including 340 posts in Scunthorpe and 90 in Workington.
The firm says any cuts would be in management and administrative roles.
Karl Koehler, chief executive of Tata Steel’s European operations, said: “European steel demand this year is expected to be only two-thirds of pre-crisis levels after falls in the past two years.
“On top of the challenging economic conditions, rules covering energy and the environment in Europe and the UK threaten to impose huge additional costs on the steel industry.
“As difficult as the proposed changes are, they are intended to build a stronger future by enabling the Long Products business to compete in even the current challenging economic and regulatory conditions.
“We will engage fully with employees, trade unions and our political stakeholders in this restructuring process and do everything we can to support our employees through this unsettling time.”
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