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Tata Steel confirms 1,000 UK staff to go in Europe cuts

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Steel workers from Tata Steel in Port Talbot

Tata Steel has confirmed that it will be cutting up to 1,000 jobs in the UK as part of the "transformation" of its European business.

The company, owner of the extensive Port Talbot, based in South Wales, where it employs more than 8,000 people, announced earlier this month that 3,000 jobs would be deployed across the continent according to its plans.

He said on Wednesday that 1,600 affected employees would be in the Netherlands.

Most of the lost jobs will be in administrative or clerical jobs as the company limits costs in a time of oversupply in the global steel market, which continues to depress prices.

The metalworkers union, Commonwealth, responded by stating that its members were paying the price for the administration's failure.

Henrik Adam, Tata Steel's chief executive in Europe, said: "I am very proud to see everyone's dedication to this business, determined to succeed even in the face of a very difficult market.

"I also understand and appreciate colleagues' concerns about these proposals.

"Change creates uncertainty, but we can't afford to remain a company – the world around us is changing rapidly and we need to adapt.

"Our strategy is to build a strong and stable European business capable of making the significant investments needed for a successful future."

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Tata Steel has promised to keep Port Talbot open despite an EU ruling blocking its joint venture plans with Thyssenkrupp.

Tata said there will be no factory closures in the UK.

The company had announced in September the closure of UK operations with the loss of 400 jobs, blaming the failure to sell the Orb Electrical Steels business in Newport.

Tata's quest to boost profitability follows a decision by European competition that blocked a joint venture with Germany's Thyssenkrupp in May.

Community general secretary Roy Rickhuss said job losses were cuts because of cuts.

He said: "We always ask for a vision for the future, which includes investment plans. Again this is missing.

"We were presented with short-term plans that only create worry and uncertainty and do little to inspire confidence.

"It looks like the company is just managing the decline and we need a significant change of direction that can inspire the workforce to have a future.

"This is a consequence of management's failure to have a plan B after the collapse of the joint venture with Thyssenkrupp."

Just a few weeks ago, Chinese steelmaker Jingye signed a provisional deal to buy rival British Steel following the May winding up.

This has saved up to 4,000 jobs and could result in a £ 1.2 billion investment in British Steel over the next decade.

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