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Indian steel major Tata Steel is set to pull out of its loss-making UK business, putting thousands of jobs at risk, according to the BBC. Tata Steel blames high manufacturing costs, domestic market weakness and increased imports into Europe for weak performance of UK arm. Shares fell over 2 percent after the statement.
The company rejected an “unaffordable” turnaround plan for Port Talbot and instead given the green light to a sale of its UK business. Port Talbot is Britain’s biggest steelworks and employs 4,000 people. The move will roughly affect Rs 15,000 workers that used to make up British Steel and then-Corus, which was bought by Tata Steel in 2007.
Reflective of the stress in its Europe operations, Tata Steel reported an Ebitda (earnings before interest, tax, depreciation and amortisation) loss of Rs.339 crore at its Europe operations for the nine-month period ended 31 December.
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