Tata to halt production for five weeks at sites

TATA Steel UK is ceasing production for around five weeks at its key South Wales operations due to what it described as continued low market demand.

- SION BARRY Business editor [e-mail]

Tata Steel said the stoppages at Port Talbot and Trostre will start in December.

(MATTHEW HORWOOD)

The stoppages will start at its pickle line in Llanwern in late November, its tinplate business at Trostre and hot strip mill at Port Talbot in December, and continue into early January.

While in the past Tata has implemented some stoppages and production reductions, these have been confined to around two weeks over the Christmas to new year period.

In a message to 6,000 staff, chief executive of Tata Steel UK Rajesh Nair said: "In light of continuing low market demand, we will be extending the Christmas production pauses at Trostre, Port Talbot hot rolled products, and Llanwern pickle line.

"Specific arrangements will be discussed at a local level between the site leadership teams and the trade unions.

"Currently, there are no plans to extend the planned Christmas stops on other Tata Steel UK assets.

"We shall also be working closely with suppliers and customers to make the necessary arrangements to ensure supply where required during this period.

"I understand that people may be worried about the ongoing impact of lower demand on our business, but I hope you will appreciate that we are making timely interventions to responsibly adapt to current market challenges."

The stoppages will start at Llanwern (pickle line) on November 27 and run to December 5. For Trostre, it will run from December 1 to January 8, and for Port Talbot from December 8 to January 8.