Tata Steel plans to cut jobs across European operations
Tata Steel
TataSteelplanstocutjobsacrossitsEuropeanoperationsas it wrestles with excess supply and high costs, the company said on Monday.
Following a weekend interview in the Financial Times with the group'sEuropeanchief executive, Henrik Adam,Tataconfirmed it was planning to announce jobcutsacrosstheEuropeanbusiness, which employs around 20,000 people.
No numbers have been made public. Indian-ownedTataSteel, which launched a transformation programme in June to strengthen itsEuropeanbusiness, hasoperationsincludingsteelmaking in the Netherlands and Wales and downstreamoperationsacrossEurope.
There will be no plant closures but the aim is to shield the company against the "huge number of challenges" it faces, the company said.
"We are working hard on ourplansto be operationally cash positive," Adam said, adding that the company was aiming for "a fundamental change". A company spokesman confirmed Adam's comments originally made to the Financial Times.
Steelmaking in Europe has come under strain from international competition and high energy costs, putting large numbers of well-paidjobsunder threat.
Europeansteelmakers blame China for the extent of a surplus in the market, but the world's biggeststeelmaker says it has made its own deepcuts to capacity.
Britain last week announced that Chinesesteelmaker Jingye has signed a provisional deal to buy BritishSteel, which went into compulsory liquidation in May.
The agreement is politically resonant ahead of British elections as job opportunities have become a major issue. If confirmed, the rescue could save thousands ofjobs.
ArcelorMittal, the world's biggeststeelmaker, has idled a series of plantsacrossEurope.
In an emailed statement on Monday,TataSteelsaid challenging market conditions had been made "worse by the use of Europe as a dumping ground for the world's excess capacity".
The company'sEuropeantransformation programme launched in June aimed to develop "a simpler and leaner organisation, capable of sustainably financing high levels of investment,Tatasaid.
Changes will include streamlining supply chains and using technology to improve efficiency, as well as seeking tocutemployment costs.
Tata's quest to boost profitability follows aEuropeananti-trust decision to block a joint venture with Germany's ThyssenKrupp.