Tata plant closures trigger warning from UK Steel on manufacturing

UK Steel issued this stark warning in reaction to Tata Steel’s wider announcement that it is likely to close plants in Lincolnshire and Scotland with the loss of 1,200 jobs.

Europe’s second largest steel producer said that production of steel plate will lead to around 900 job losses in Scunthorpe and 270 in Scotland, as well as a small number at other Long Products Europe sites. Plate mills in Scunthorpe, Dalzell and Clydebridge would be mothballed while one of the two coke ovens at the Scunthorpe steelworks would be closed.

Factors contributing to Tata Steel’s announcement – which follows Caparo Industries’ move into administration – include a shift in market conditions caused by a flood of cheap imports, particularly from China, a strong pound and high electricity costs.

Karl Koehler, Chief Executive of Tata Steel’s European operations, said: “The UK steel industry is struggling for survival in the face of extremely challenging market conditions.