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Tata steel: Port Talbot faces 750 job losses Tata steel: Port Talbot faces 750 job losses
(35 minutes later)
More than a thousand job losses have been announced at Tata steel plants later, mostly in south Wales. More than 1,000 jobs are to go at Tata steel plants, mostly in south Wales.
The company confirmed 750 jobs would go at Port Talbot and another 300 at steel mills in Llanwern in Newport, Trostre near Llanelli and at Corby and Hartlepool plants in England. Tata said 750 jobs would go at Port Talbot, while Llanwern in Newport and Trostre at Llanelli will share 100 job losses with two plants in England and 200 jobs will go in support functions.
Unions were called into a meeting with management at 10:00 GMT. It said "tough actions are critical in the face of extremely difficult market conditions".
First Minister Carwyn Jones said the job cuts were a "devastating blow" to the community and the wider economy.First Minister Carwyn Jones said the job cuts were a "devastating blow" to the community and the wider economy.
Earlier, Community general secretary Roy Rickhuss called for "meaningful action" from the UK Government. Karl Koehler, chief executive of Tata Steel's European operations, said: "I know this news will be unsettling for all those affected, but these tough actions are critical in the face of extremely difficult market conditions which are expected to continue for the foreseeable future.
Tata employs 4,000 people at Port Talbot and 6,000 in Wales. 'Unprecedented challenges'
Thousands of industry jobs have already been lost in Scotland and England, with the focus now set to turn to Wales. "We need the European Commission to accelerate its response to unfairly traded imports and increase the robustness of its actions. Not doing so threatens the future of the entire European steel industry.
"And while we welcome progress on UK energy costs, the (UK) government must take urgent action to increase the competitiveness of the UK for its vital steel sector.
"This includes lowering business rates and supporting energy efficiency and anti-dumping cases so we can compete fairly."
He said Tata had invested £1.5bn in its UK operations but needed all stakeholders to "do their utmost to meet the unprecedented challenges the steel sector is facing."
The Prime Minister's official spokesman has said it is "a worrying time for the workforce".
Earlier, Community general secretary Roy Rickhuss called for "meaningful action" from the UK government.
Tata employs 4,000 people at Port Talbot and more than 6,000 in Wales.
Thousands of industry jobs have already been lost in Scotland and England, with the focus now turning to Wales.
Cheap Chinese imports, a strong pound and high energy costs have been called "a perfect storm" for the UK steel industry.Cheap Chinese imports, a strong pound and high energy costs have been called "a perfect storm" for the UK steel industry.
Mr Rickhuss added: "The dumping of cheap Chinese steel is one of the biggest causes of this crisis, yet the UK government remains a cheerleader for China and their bid for 'market economy status', which would decimate what's left of our steel industry. This cannot be allowed to happen."Mr Rickhuss added: "The dumping of cheap Chinese steel is one of the biggest causes of this crisis, yet the UK government remains a cheerleader for China and their bid for 'market economy status', which would decimate what's left of our steel industry. This cannot be allowed to happen."
But he called for long-term commitment to steel making in the UK from Tata after "significant sacrifices" from its workforce.But he called for long-term commitment to steel making in the UK from Tata after "significant sacrifices" from its workforce.
Tata Steel Europe, which employs 17,000 in the UK, is in the throes of a wide-scale reorganisation of its business.
It currently puts £200m a year into the Welsh economy in wages.
Alan Coombs, the president of the steelworkers' union Community, and chairman of the multi-union group at Port Talbot, said it was worrying for the future.
"It's worrying about where future apprentices and future engineers are going to come from. It's hard to see where these jobs will be replaced."
He added: "Today's news is a tragic reminder of the UK's ongoing steel crisis.
"Here in Port Talbot we make some of the world's best steel, but cheap Chinese imports and high energy costs are crippling our industry."
Analysis by Brian Meechan, BBC Wales business correspondentAnalysis by Brian Meechan, BBC Wales business correspondent
Tata has been part of the scene in Port Talbot for decades. It is the biggest plant in the UK, providing well paid jobs that are difficult to replace. For every job in the steelworks, it's estimated another four jobs in the local economy are supported.Tata has been part of the scene in Port Talbot for decades. It is the biggest plant in the UK, providing well paid jobs that are difficult to replace. For every job in the steelworks, it's estimated another four jobs in the local economy are supported.
This is more bad news for a company and an industry that has been struggling and a workforce that has put a lot in, in recent years, to try to make Tata competitive. But it is fighting against global forces including cheap imports from China. The UK government has put in measures recently to deal with high energy costs but the industry has been calling for these for four or five years.This is more bad news for a company and an industry that has been struggling and a workforce that has put a lot in, in recent years, to try to make Tata competitive. But it is fighting against global forces including cheap imports from China. The UK government has put in measures recently to deal with high energy costs but the industry has been calling for these for four or five years.
The steel industry has not really recovered from the financial crash in 2008 when at its height people stopped buying white goods, cars, and construction stopped. We talk a lot about dumping but it is cheaper to produce steel in China and that is not going to change.The steel industry has not really recovered from the financial crash in 2008 when at its height people stopped buying white goods, cars, and construction stopped. We talk a lot about dumping but it is cheaper to produce steel in China and that is not going to change.
Tata have invested quite heavily in Port Talbot with the new blast furnace in particular and also in the workforce and it has been quite patient.Tata have invested quite heavily in Port Talbot with the new blast furnace in particular and also in the workforce and it has been quite patient.
But ultimately the concern is that patience will eventually run out. We are looking at a meeting at Tata headquarters in India in a few weeks time and the company will look at the proposals made by Tata UK and may think that is a best case scenario and does not go far enough.But ultimately the concern is that patience will eventually run out. We are looking at a meeting at Tata headquarters in India in a few weeks time and the company will look at the proposals made by Tata UK and may think that is a best case scenario and does not go far enough.
Live updates on the Tata steel announcementLive updates on the Tata steel announcement
First Minister Carwyn Jones has urged the UK government to come forward with a package to help the steel industry with their energy costs. Why is the Port Talbot steelworks so important?
The UK government said it was "meeting key steel industry asks" through cutting energy costs and taking action on imports and EU emissions regulations. Steel job losses: Reaction to 'devastating blow'
A Business Department spokesman said it was monitoring the Tata situation closely. Tata Steel Europe, which employs 17,000 in the UK, is in the throes of a wide-scale reorganisation of its business.
"The government continues to engage closely with Tata on how we can help during this difficult period for the sector," he added. It currently puts £200m a year into the Welsh economy in wages.
Alan Coombs, the president of the steelworkers' union Community, and chairman of the multi-union group at Port Talbot, said: "Here in Port Talbot we make some of the world's best steel, but cheap Chinese imports and high energy costs are crippling our industry."