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Tata Steel could shed as many as 1,500 jobs, and close or mothball parts of its Scunthorpe plant in North-east England under plans being considered to overhaul the company's long products business in Europe.
Mr Karl-Ulrich Koehler, Managing Director of Tata Steel's European operations, attributed the need for restructuring and cost-cutting to ongoing weakness particularly in the construction sector, which had contributed to the division reporting two consecutive years of losses.
“The business has no future in its current format,” he said on Friday, adding that the firm was only taking action after going through an “inclusive consultative” process that involved “every careful scrutiny” of the division's performance.
The company will spend £400 million over the next five years on turning around the division, with the impact beginning to be felt in the next year, Mr Koehler said.
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