stahlmarkt European Edition 01.2013

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20 K Special: Northern Europe / UK Tata Steel restructures to improve competitiveness of UK operations Commissioning of blast furnace No. 4 in Talbot London. Tata Steel announced that they will restructure their UK operations in order to improve their competitiveness. Key element is the restart of blast furnace No. 4 in Port Talbot in South Wales. WWK Mid of February Tata Steel has restarted its second blast furnace at the Port Talbot steelworks in the UK as part of a 250 million pounds investment programme. Blast Furnace No. 4 was decommissioned in July last year before being completely rebuilt with a 185 million pounds rebuilding project. This was the UK’s largest industrial engineering project last year and created several hundreds jobs. The state-of-the-art new furnace has enhanced health, safety and environmental care facilities, making it a worldwide standard-setter as one of the most efficient in the world. It allows Tata Steel to produce up to 2.47 million tonnes steel in this facility from now on aiming to meet the demanding require ments of UK and European manufacturing industries. Further energy and environmental benefits will be gained from the recentlycompleted 55 million British pounds energyfrom-heat scheme at Port Talbot’s steel plant which will save 10 MW of energy – enough to power 20,000 homes. It will also lead to the restarting of the hot strip mill at the company’s Llanwern site in Newport, South Wales. Concentration of steel finishing sites Moreover, Tata Steel plans changes at a number of steel finishing and processing sites in the UK that would improve its product and service offering for customers. These changes would concentrate services at six distribution and processing hubs which on the one hand would benefit from 22 million pounds of new investment and new employment, but would also lead to the closure of 12 sites, including Tafarnaubach and Cross Keys in South Wales. Karl Köhler, CEO of Tata Steel’s European operations, said: »Today’s proposals are part of a strategy to transform ourselves into an ›all-weather‹ steel producer, capable of succeeding in difficult economic conditions. These restructuring proposals will help make our business more successful and sustainable, but the job losses are regrettable.« The proposed changes are expected to lead to a net loss of 900 jobs in the UK, including 500 jobs in management and administrative functions at Tata Steel’s Port Talbot-based production hub in South Wales. »Our subsidiary UK Steel Enterprise will be looking at how it can provide more support to local steel communities and stimulate new jobs«, Köhler added. »We will strengthen this work with a further 650,000 pounds to help them create new jobs in affected areas. We will do everything we can to reduce the impact of the proposals on employees and, where possible, we will look to achieve job losses through voluntary redundancies.« Trade union secretary demands government action Michael Leahy, General Secretary of the Community trade union and Chair of the trade unions Steel Committee, said: »Sadly, these potential job losses are yet another reason why we are calling on the British government to take urgent action to stimulate economic growth and help revive the manufacturing sector. This announcement comes after a four-year long downturn in the UK and European steel industry, where the fall in UK steel demand has been steeper than in any other major European economy. This is why we need faster investment in infrastructure programmes and community benefit clauses in UK procurement just as France and Germany do to support their own manufacturing industry.« Last year, Tata Steel launched a five-year improvement programme backed by significant investment, including almost 250 million pounds to rebuild a blast furnace and install energy-efficient gas recycling at Port Talbot. The restructuring proposal follows earlier decisions implemented at the company’s other production hubs in Scunthorpe, North Lincolnshire, and IJmuiden, Netherlands. (EE 130104693) K About Tata Steel in Europe The European operations of Tata Steel comprise Europe‘s second largest steel producer. With the main steelmaking operations in the UK and Netherlands, they supply steel and related services to the construction, automotive, packaging, lifting & excavating, energy & power, aerospace and other demanding markets worldwide. The combined Tata Steel Group is one of the world‘s largest steel producers, with an aggregate crude steel capacity of more than 28 million tonnes and approximately 81,000 employees across five continents. UK Steel Enterprise is a subsidiary of Tata Steel. Since it was set up nearly four decades ago, UKSE has invested more than 80 million pounds in around 5,600 companies and more than 30 million pounds in providing business premises. stahlmarkt European Edition 1.2013
L STEEL IN BRIEF RUUKKI STRENGTHENS ITS POSITION IN RETAIL AND LOGISTICS CONSTRUCTION IN SWEDEN Helsinki. Ruukki has signed contracts with Swedish companies Nimag Projekt AB (Nimag) and Peab Sverige AB (Peab) for the design, manufacture and installation of steel frames and load-bearing roof structures for a Bauhaus store near Stockholm and for Ikano‘s new shopping centre in Uddevalla. The contracts are worth a total of around 6 million euros. Under the contract signed with Nimag, Ruukki will design and deliver the steel frame, load-bearing roof structures and façades, including installation, for the new Bauhaus store to be built in the municipality of Upplands Väsby, near Stockholm. Under the contract signed with construction firm Peab, Ruukki will design and deliver the steel frame and load-bearing roof structures, ready installed, for a 25,000 m 2 shopping centre being built in Uddevalla for Ikano. The structures for the projects will be manufactured at Ruukki‘s plants in Gargzdai, Lithuania and Seinäjoki, Finland. www.ruukki.com (EE 130104551) K /
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stahlmarkt European Edition 01.2013

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