Tata Steel will start consultations with the UK unions to discuss about the restructuring moves at its Port Talbot site as the company shifts to electric-arc furnace production, Managing Director and Chief Executive Officer TV Narendran said in an exclusive interview with Moneycontrol on November 2.
He denied media reports that the company delayed the announcement on job cuts, after a scheduled press conference was cancelled by the company late on Wednesday evening soon after it put out a grim quarterly results.
"There will be an impact on jobs. We don't like it but I think the objective is to make sure that we have a sustainable business in the UK and we continue to make steel in the UK," said Narendran.
UK media reported that the company was set to announce the shutting of blast furnaces at the Welsh plant as it pivots to install a low-emission plant. Staff had been braced for up to 3,000 job cuts and confirmation of the closure of two blast furnaces, according to The Guardian.
"There is some confusion on the delay because yesterday we were supposed to do a call with the media, but we had to push it because by the time the results got uploaded, it was quite late," Narendran said in an interview with Moneycontrol. He added that the company is in consultation with the unions regarding the amount of job cuts.
"At the end of the consultation, we will have a very clear path ahead and defined timelines," he said.
UK's United the Union condemned Tata Steel's move and called on the government to intervene immediately by taking a stake in the UK steel industry.
In September, The UK government agreed to give a grant of £500 million to help Tata Steel decarbonise its Port Talbot project at Wales, after months of negotiations to save the project.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
