Tata Steel Job Cuts Latest To Hit Industry

 

Tata Steel Job Cuts Latest To Hit Industry


It is the second blow to the sector this week following yesterday's news that Caparo Industries was to enter partial administration, with 1,700 jobs at risk.
The UK-based company, owned by Labour peer Lord Paul, has plants nationwide - but most are situated in the West Midlands.


According to the TUC, one in six British steelworkers now face the prospect of losing their jobs overall, with approximately 5,200 workers in the UK threatened with redundancy.
David Cameron has promised to raise the issue of the "dumping" of cheap steel onto the market with Chinese President Xi Jinping during his four-day state visit to the UK however, unions say this gesture is not enough to safeguard the industry.


Roy Rickhuss, general secretary of the Community steelworkers' union, said: "The Prime Minister needs to do more than 'raise' the issue.
"He needs to tell the Chinese premier what action he's going to take to stop Chinese steel damaging the future of a vital foundation industry in the UK."
Due to overcapacity in the Chinese market, the price of steel has fallen by 40% in the past year - from about 318 a tonne to 191 a tonne. The drop has meant many UK firms are no longer able to compete.


Earlier this week China bailed out one of its own state-owned commodity miners, Sinosteel, which is facing a cash crisis and is struggling to repay its debts.
Any prospect of buyers being found for Caparo's subsidiaries by administrators at PwC is bleak, given the failure to find a buyer for SSI UK's steelworks in Redcar.
The Government held a summit last week to address the future of the ailing UK steel industry.


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