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British Steel Maker To Cut Over 2,000 Jobs
By Jane Wardell, AP Business Writer
Manufacturing.Net - June 25, 2009

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LONDON (AP) -- Steel company Corus said Thursday it plans to cut more than 2,000 jobs -- or 10 percent of its British work force -- as part of a restructure after a slump in demand.

Unions described the job losses, which come on top of a round of 3,500 cuts announced in January, as "devastating" and called on the British government to offer help to the ailing steel industry.

Corus, owned by Indian firm Tata Steel, said that the new cuts will hit the company's long products division, which supplies steel to the construction industry, one of the worst affected by the recession.

The company said that several of its sites had suffered "further deterioration" in demand for their products since the start of the economic downturn.

"Any recovery in Europe appears to be some time off, so it is vital that we take this proportionate and responsible action now," said Chief Executive Kirby Adams.

"We have to achieve long-term, sustainable competitiveness in a global and oversupplied steel market and are determined to do so by focusing on the quality of the products and services we offer our customers," he added.

The company said that 2,045 jobs were affected, including 1,500 in the company's production facilities and about 800 at the engineering steel sites. Most of the cuts will be made in Britain, but some will come from the Netherlands.

Corus, which employs more than 20,000 in Britain and has the capacity to produce over 13 million tons of steel per year, said it would make every effort to ensure as many of the job losses as possible were voluntary.

"It's devastating news for our members and their families in steel communities right across the U.K.," said Community union General Secretary Michael Leahy, warning that the cuts would have a knock-on effect to thousands of other workers in the wider steel industry.

Unite union National Officer John Rowse said that it was time for the government "to step up and act."

"While this latest announcement is due to the impact of the global crisis, interim solutions have to be local to the U.K.," he said. "Unless there is urgent support from the UK Government, British manufacturing will come out of recession hamstrung and unable to compete in the world economy."

Business Minister Pat McFadden said the government was working with Corus to secure the future for as many workers as possible. The government has offered up to 5 million pounds ($8 million) of training support to secure jobs across Corus sites.

McFadden said the government was supporting the steel industry through expenditure in construction, measures to assist automotive companies and the car scrappage scheme to boost demand for new vehicles.


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