Decline of steelmaking in the UK

The decline of UK steelmaking continues.

According to a press report published today, the Tata steelworks in Port Talbot is set to shed 400 jobs, with chief executive Karl Koehler saying the moves are necessary for the company to remain competitive.

High business rates and rising energy costs were cited as reasons for the job losses.

“Steel demand and prices are likely to be under pressure for some years. Our business rates in the UK are much higher than other EU countries’ and our UK energy costs will remain uncompetitive until new mitigation measures come into effect”, said Koehler.

A 45-day consultation period will begin shortly. This is not the first time the Tata boss has warned about the consequences of high energy costs. In January, Koehler urged the government to slash energy bills.

For original press report, visit http://www.cityam.com/1404212347/tata-steelworks-cuts-400-jobs-due-uncompetitive-energy-costs