– Karl Koehler, Chief Executive of Tata Steel Europe
"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."
Tata Steel will cut 40 jobs at its plant on Teesside, mostly in management and administrative roles. The Thai firm is also cutting 90 jobs in Working and 394 in Scunthorpe. It said the demand for steel in the construction industry in the UK is half the level of 2007.
Tata Steel plans to cut up to 500 jobs in Scunthorpe, Workington and Teesside because of weak demand in the construction industry, the company said today.