Tata Steel has announced that almost 600 jobs in South Wales are to go as part of a restructure.
Its sites in Crosskeys and Tredegar will close, the company has announced, with job losses numbering 87 and 76 respectively.
Most of the 580 jobs in Wales, part of 900 UK job losses, will be through a restructure of management and administrative posts in Port Talbot and Llanwern, near Newport.
Karl Kohler, chief executive of Tata Steel’s European operations, 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.
“We will be working with our trade unions and government at a national and local level to ensure we provide them with as much assistance and support as possible.
“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.
“We will strengthen this work with a further £650,000 to help them create new jobs in affected areas.
“UK Steel Enterprise has teams in all the affected locations who, for almost four decades, have helped to regenerate local economies and create 70,000 new jobs in the UK.
“We will do everything we can to reduce the impact of the proposals on employees and, where possible, we will look to achieve job losses through voluntary redundancies.”
The company admitted that demand for steel in Europe had dropped by a quarter since 2007 and was forecast to fall by another 10% during 2012.
Islwyn MP Chris Evans said the closure of Crosskeys was terrible news ahead of Christmas.
He said: “This is a massive blow to workers in Crosskeys and terrible news for families as we approach Christmas. Over the next few weeks I hope that management and unions work closely with workers and their families to find a way forward.”
Secretary of State for Wales, David Jones said: “There is no denying the challenging conditions businesses are facing in the global marketplace. Today’s announcement by Tata Steel will impact on many in South Wales, but whilst it will not give the individuals affected comfort, this commercial decision is one that has been undertaken to ensure Tata’s UK operations can remain competitive.
“I have been assured that Tata remains committed to having a strong presence in Wales and the UK as a whole.
“The news that Tata is expected to light Blast Furnace 4 in the first quarter of 2013 is welcome news, as is the the creation of 120 new jobs at the hot strip rolling mill at Llanwern and 65 new jobs at its distribution centre.
“However, the loss of over 500 jobs in Wales is a short and sharp reminder of the challenges facing businesses globally. Both Governments in Whitehall and Cardiff need to be relentlessly focused on the economy and I am committed to working with the Welsh Government to ensure we succeed in this area.”
A Welsh Government spokesman added: “The Welsh Government has a very strong relationship with the company, and officials will now work with Tata to establish a task force and identify what support we can provide for those affected.
“Tata’s decision reflects the serious and ongoing challenges faced by manufacturing industries during these very difficult economic times.
“In addition to these challenges, it is clear that high energy costs and uncertainty over UK government energy policy are having a significant impact on business investment decisions.”
Thats what happens when we sell our steel industry to a multinational
It is true that a multinational company has no loyalty to its workforce and will close operations in Britain in order to increase profitability.
Unfortunately our own people seem to do exactly the same thing. Our government once was proprietor of the Steel, coal, rail, water, gas, and oil industries; supposedly managing them for the common good. In just over thirty years most of these industries are gone or in the hands of foreign investors. Not a good strategy for economic well being nor social stability.
What do you mean by "our people" it was the Tories what done it.
What I mean, by "our people" is people that were born and bred in the British Isles. I am not referring to any party clique. The conservatives did not come from another country they are a well established part of our democracy and are entitled to their opinions.
I do not agree with many of their unfettered market views, any more than I agree with crackpot nationalist ideas of an independent Wales at the mercy, and relying on handouts from, the EU. I am making a point that all the recent governments, elected by the people, seem to have a flawed view that our companies are better managed by foreign investors who operate on a global scale; also they are of the opinion that manufacturing is too great a risk to the environment for the British to continue with and it is better that we borrow money to buy food and goods from abroad.
Ultimately the responsibility for this disaster lies with us, the voters, who do not apply enough pressure to the political class to change their ways. Many people can motivate themselves to cast a vote for acts on X-Factor but cannot summon up the energy to effect change by voting at elections. This makes it all very easy for the political parties, they all sing from more or less the same hymn sheet because they have deliberately narrowed their appeal to the minority who can be bothered to vote.