The government faced calls to tackle the British steel industry crisis after Tata Steel announced plans to axe 1,050 jobs.
Tata Steel has confirmed its plans to cut 1,050 jobs in the UK, including 750 at Port Talbot, south Wales, as it warned that cheap imports from China were endangering the European steel industry.
Trade unions and industry officials urged the government to give the UK steel industry help.
The falling prices of global steel and a flood of cheap imports were what Tata said was responsible for the cuts, urging the UK and EU to act more urgently to deal with the crisis and take stronger action against “unfair” steel imports.
Karl Koehler, Chief Executive of Tata Steel’s European operations, said: “I know this news will be unsettling for all those affected, but these tough actions are critical in the face of extremely difficult market conditions which are expected to continue for the foreseeable future.
“The government must take urgent action to increase the competitiveness of the UK for its vital steel sector. This includes lowering business rates and supporting energy efficiency and anti-dumping cases so we can compete fairly.”
David Cameron said the government was acting to cut energy prices for steel companies, give more government contracts to UK firms and engage with the European Union on cheap Chinese steel exports. He said: “But we’ll continue to work with them and I want to have a strong British steel industry at the heart of our important manufacturing base”.
The price of a tonne of European domestic hot rolled coil – a type of steel – has more than halved from €642 (£490) per tonne in 2011 to €320.
China’s annual steel exports to the EU have surged from 4.6 million tonnes to 7.7 million tonnes, which has highlighted allegations that Chinese companies are dumping steel in the EU that they can’t sell domestically.
Roy Rickhuss, General Secretary of the Community trade union has accused ministers of being more interested in strengthening business links with China than addressing the impact of cheap Chinese steel on the UK’s industry.
“The dumping of cheap Chinese steel is one of the biggest causes of this crisis, yet the UK government remains a cheerleader for China. You can’t wring your hands over steel job losses and then shake hands with the Chinese government over cosy trade deals.”
Staff at Port Talbot have been told there will be a 45-day consultancy over the proposed cuts.
Anna Soubry, the Business Minister said the government will work with the Welsh assembly to support workers and find them new jobs.
