Tata Steel has finally incorporated its Long Products Europe division into a new standalone independent subsidiary within its European operations. Hundreds of Tata Steel workers on Teesside in the north east of England will effectively come under the new management which will be led by Bimlendra Jha, executive chairman of Tata Steel board.
“The move brings together the existing long products businesses with its associated distribution facilities. It will allow the business to combine the strength of Tata Steel with a flexible and more focused operational approach. It will also enable strategic options to be progressed,” a Tata Steel spokesperson said. Jha, who replaces Jon Bolton, will run Tata Steel's India based long products business the company said.
The news followed the abandoning of Anglo-American industrialist Gary Klesch's plans to buy the LPE plant, citing rising energy costs and Chinese imports ruining the UK steel industry. A report commissioned by the workers' union claimed a standalone business would be the best option for Tata's LPE division.
“As the key recommendation from the Syndex report into the future of Long Products, we welcome the creation of the stand-alone business and look forward to working with Jha and his team to create a sustainable future for long product steel production in the UK,” a community union spokesperson said.
“Having worked closely with Jon Bolton over a number of years, we wish him all the best as he leaves the business.”
Tata Steel had announced it would drop 25 jobs at its Skinningrove plant after it saw a decrease in customer orders.
