Britain’s Largest Steelmaker Tata Likely to Lay off 720 Jobs

Tata to lay off employees at its Rotherham plant that made steel bar products for car manufacturing industries.

Around 720 jobs likely to be cut down by Tata Steel at its Rotherham plant in South Yorkshire, UK. (Photo: Reuters)

Britain’s largest steelmaker, Tata Steel, is likely to lay off over 720 jobs at its Rotherham plant in South Yorkshire after talks to save redundancies failed. The Rotherham unit made steel bar products for the car manufacturing industries.

Earlier in July, the firm said the jobs at its Rotherham plant may have to be cut, but it would work with staff to minimise job losses.

Local MP John Healey said he has received confirmation from Tata that all the jobs will be lost at the Aldwarke plant in the suburbs of Rotherham.

Rotherham has become the forgotten town of the steel crisis. We are being hit just as badly as other parts of the country, hundreds of job losses have now been confirmed, but the government is not giving us any of the support pledged to other steel towns. With hundreds of forced redundancies ahead, steel workers are facing a bleak Christmas and new year. They need all the help that they can get.

John Healey, Local MP

The UK government has introduced emergency support to the struggling steel industry which is grappling with a worldwide oversupply because of the slowdown in the Chinese construction sector.

It has exempted steel-makers from emission regulations and introduced new procurement guidelines to encourage the use of British steel in public building contracts.

The bar business has been under-performing in the face of commodity-grade steel being unfairly traded in the UK, the strong pound and high energy costs. This led to a decision, after examining all the options, of refocusing on higher-value markets which can help the company reduce its losses and turn the corner to profitability in the future.

Spokesperson, Tata Steel

“While Tata Steel is thankful of the work done by the trade unions via their consultants, Syndex, none of the recommendations would have given us the solid base required to ensure we can continue to employ around 1,500 people in South Yorkshire,” he said.

Tata has already shed 900 jobs at its Scunthorpe plant, while SSI closed its Redcar steelworks in October, with the loss of 2,200 jobs.