40976
Tata Potential Bidder Warns of Job Cuts
World Economy

Tata Potential Bidder Warns of Job Cuts

One of the potential buyers of Tata Steel—the management team—says it could cut up to 1,000 jobs if it succeeds in buying the plants.
Excalibur Steel UK Limited said its plans for the business were based on “re-engineering” the way it is run, BBC reported.
Excalibur is one of two possible buyers, the other is Liberty House.
Unions are concerned about job losses at the Tata plants, which include the country’s biggest steel plant at Port Talbot in south Wales. More than 4,000 people work at that site.
The current owner, India’s Tata Steel, said this week it would begin looking at what prospective buyers of its loss-making UK business are prepared to offer after receiving letters of intent. Tata is hoping for a quick sale.

  Losing £1m Everyday
It has connected with 190 potential bidders for the Port Talbot site, which is the biggest in the UK.
Tata has not publicly set a deadline for any deal, but has made it clear it cannot sustain its £1 million-a-day ($1.44 million) losses indefinitely and does not want to prolong the uncertainty for workers and customers.
Excalibur said the reorganization would be necessary as the current business was run as part of a far larger one, which had other plants in Europe.
It said in a statement: “The opportunity for greater efficiency involves evolving from a highly functional centralized business model, with significant fixed costs and overheads.
“This arises because the existing arrangements are based on a pan-European structure. Excalibur’s proposals will see a migration towards leaner autonomous sub-business units. In the event Excalibur is successful in acquiring Tata’s UK steel assets, this will inevitably take some time to achieve. “Potentially this could affect up to 1,000 jobs across the entirety of the operation.”
Roy Rickhuss, general secretary of the Community Union said this was “worrying” for steel workers, who were already facing uncertainty: “We have had no discussions with Excalibur about additional job losses. We await to see the details of their plans for the business and any implications for jobs.”
The UK government has previously said it will consider taking a stake in any rescue plan for Tata’s Steel’s UK assets, which also include sites at Llanwern, Shotton and Trostre.

Short URL : http://goo.gl/YV9f9Z
  1. http://goo.gl/I0s09U
  • http://goo.gl/Y8FQXd
  • http://goo.gl/B6Kvaj
  • http://goo.gl/ySmBFH
  • http://goo.gl/R5s4la

You can also read ...

Close to 40% of digital transformation initiatives will be supported by AI capabilities.
The digital economy in Asia-Pacific, or APAC, is expected to...
An electronic stock indicator of a securities firm in Tokyo.
As investors come to terms with the impending end of easy...
Most economists would agree that Italy needs faster economic growth if it is to resolve its public debt  and banking-sector problems in an orderly manner.
Italy’s economy is growing again, but it’s still the worst...
Maersk is expanding its competitive universe to include different types of companies.
The world’s largest container company will start looking for...
Lloyds Profits Miss Forecasts
Lloyds Banking Group PLC raised its 2017 dividend by 20% and...
NZ Says Pacific Trade Deal Will Boost GDP
New Zealand estimates a Pacific trade deal would boost its...
CBs May Top Inflation Targets
Not only will central banks meet their inflation targets, they...
Pak Current Account Gap Widens
Pakistan’s current account deficit widened 28.74% on a month-...

Trending

Googleplus