Mumbai: Tata Steel on Monday said that it will lay off over 400 employees in Britain amid “considerable challenges” in the European steel industry.
This comes as two biggest European economies — Britain and Germany — are already on the brink of a recession, witnessing negative growth rate.
In a regulatory filing, the company said it is “unable to find a way forward” for Orb Electrical Steels and so proposes to close the site, with the potential loss of up to 380 jobs.
In addition, Tata Steel informed that it has been unable to find a buyer for Wolverhampton Engineering Steels Service Centre, in Britain, and proposes to close it, potentially affecting up to 26 jobs, including a sales office in Bolton.
“We have been able to secure the future for almost 400 colleagues in CPI and Surahammars Bruks. However, today’s proposal will be sad news for colleagues at Orb in South Wales. This is necessary, enabling us to focus our resources..,” said Henrik Adam, CEO of Tata Steel’s European operations.
Tata Steel said that the Orb Electrical Steels business has been loss-making for several years as it struggled to compete in the fast-moving market to supply steels used in electricity transformers in which customer requirements have out-stripped the site’s capability.