Ratan Rata-led Tata Steel today said it will cut 900 jobs in the UK as part of major restructuring of European operations to make the company an "all-weather" steel producer, capable of succeeding in difficult economic conditions.
"The proposed changes are expected to lead to a net loss of 900 jobs in the UK, including 580 in South Wales, 155 in Yorkshire, 120 in the West Midlands and 30 in Teesside," the steel giant said.
The company is proposing to make changes at a number of steel finishing and processing sites in the UK, Tata Steel said in a statement.
CEO of Tata Steel's European operations, Karl Kohler said, "Today's proposals are part of a strategy to transform ourselves into an 'all-weather' steel producer, capable of succeeding in difficult economic conditions.
"These restructuring proposals will help make our business more successful and sustainable, but the job losses are regrettable and I know this will be a difficult and unsettling time for the employees and their families affected," he said.
Kohler said the company will be working with its trade unions and government at a national and local level to ensure maximum possible assistance and support to them.
"In addition, our subsidiary UK Steel Enterprise will be looking at how it can provide more support to local steel communities and stimulate new jobs following today's announcement," he added.
Tata Steel also said it will re-start one of the two blast furnaces in Port Talbot, South Wales, being rebuilt as part of 250 million pound investment in the first quarter of 2013.
It will also lead to the restarting of the hot strip mill at the company's Llanwern site in Newport, South Wales.
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The company's proposals include the restructuring of management and administrative functions which would lead to the loss of 500 jobs at Tata Steel's Port Talbot-based production hub in South Wales.
Similar restructuring programmes were initiated last year at the company¿s other two production hubs.
The company is proposing to make changes at a number of steel finishing and processing sites in the UK that would improve its product and service offering for customers, the statement said.
"These changes would concentrate services at six distribution and processing hubs which would benefit from 22 million pounds of new investment and new employment, but would also lead to the closure of 12 sites, including