INDIA’S Tata Steel said on Wednesday (May 29) it would save most jobs as it restructures its UK operations following a drop in fourth-quarter profit due to lower steel prices and impairment charges.
The country’s second-biggest steelmaker by market cap said its consolidated net profit fell 64 per cent to 6.11 billion rupees (S$98.9 million) in the three months ended Mar 31.
We are committed to creating a low carbon dioxide steel business that preserves the majority of the jobs in UK while also creating economic opportunities, said chief executive and managing director T V Narendran.
The company is in the process of closing its two blast furnaces in Britain, with the loss of up to 2,800 jobs at its Port Talbot steelworks in Wales. The British trade Union community has voted for strike action against these job-cut plans.
Meanwhile, domestic steel prices remained under pressure during the quarter as India imported higher volumes of finished steel from China, the top producer.
Total revenue from operations fell to 586.87 billion rupees from 629.62 billion rupees in the quarter, owing to a nearly 4 per cent drop in its mainstay India business, which contributed at least 62 per cent of the overall revenue.
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The company also incurred exceptional charges of 6.49 billion rupees due to the closing of its Sukinda Chromite Block in Odisha and other expenses around its European operations.
Separately, the Tata Group-operated firm will be raising 30 billion rupees through issue of debt securities, it said on Wednesday.
It also said that the commissioning of the five million tonnes per annum (MTPA) facility at Kalinganagar is progressing. REUTERS
