Fears for Tata Steel jobs

Tata Steel at Scunthorpe Credit: ITV Yorkshire

Fresh fears over the future of UK steel jobs were raised today after India's Tata Steel wiped £1 billion from the value of its European operations.

The group, which has UK operations at sites including Rotherham and Scunthorpe, blamed the tough economy in Europe where steel demand has slumped by about a third since the start of the financial crisis.

Unions said the huge writedown will worry its 18,500 staff in the UK who are still reeling from 900 job cuts last year.

Tata, which bought steel giant Corus in 2007 for £6.2 billion, has seen demand from construction and car-making dive, forcing thousands of lay-offs and plant closures.