Tata Steel has confirmed that it is cutting 500 jobs in the UK, with the company blaming the construction sector for a lack of demand.
The firm revealed that 340 of the positions are under threat at its plant in Scunthorpe.
Karl Koehler, chief executive of Tata Steel’s European operations, explained that demand for steel is expected to be only two-thirds of pre-crisis levels after falls in the past two years.
"On top of the challenging economic conditions, rules covering energy and the environment in Europe and the UK threaten to impose huge additional costs on the steel industry," he said.
It was also noted by Tata Steel that the UK market for construction steel is now down to about half of 2007 levels.
Following the announcement of the job losses, the share price of Tata Steel is slightly up in the early stages of trading today (October 30th).
At 08:25 GMT, its stocks were selling 0.49 per cent higher than at the start of the session.
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