– 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.
Tata Steel, which employs around 1500 people on Teesside and County Durham, has written down the value of its European business by a billion pounds.
The Indian-based firm has blamed the devaluation on weak markets and a falling demand for steel across Europe.
Tata employs workers in Darlington, Skinningrove, Hartlepool and Redcar.
The firm is expected to comment further on the move when it reveals its annual financial results later this month.
Tata Steel has launched a new nationwide search for apprentices - including at its Teesside and Hartlepool sites - which will create over twenty apprenticeships in the North East.
Eight new apprenticeships will be created at the Teesside plant, with a further eight positions at Skinningrove and six in Hartlepool.
The apprenticeships, beginning in September, will offer young people the chance to train for three years in both mechanical and electrical skills at Tata Steel.
Applications will be open until 17 March. For more information on how you can apply, click here.
Tom Blenkinsop MP – who chairs the All Party Parliamentary Group on Steel and Related Industry – described today job cuts at Tata Steel as “very bad news for manufacturing in the UK”.
The proposed changes are expected to lead to a net loss of 900 jobs in the UK, including 90 in Hartlepool and 14 on Tyneside, however, 60 jobs will be created on Teesside.
– Tom Blenkinsop MP
“Clearly this is devastating news for the workers and their families, particularly at this time of year approaching the festive season. I understand Community Union officials are talking with the company urging there to be no compulsory redundancies and that training and support will be offered to those who lose their jobs."
“As Chair of the APPG on Steel and Related Industry I’m currently in the process of arranging an emergency meeting to raise our concerns over this latest news."
Steel giant Tata has announced it is to cut around 100 jobs in the North East.
90 jobs will go at the pipe mill in Hartlepool, 14 will go on Tyneside but 60 jobs will be created at its Teesside Distribution Centre at Lackenby.
More than 30 jobs have been created at a new steel distribution centre on Teesside.
Tata Steel - the former owners of the SSI steelworks - has built the three million pound facility on the company’s Lackenby site, adjacent to its Teesside Beam Mill.
The centre is set to provide a faster and more efficient service for the construction industry.
The company said further jobs could be created at the facility in the future if market conditions improve, and the centre handles larger volumes of steel products.