This is Scunthorpe -- THE challenges facing Tata Steel were put in the spotlight in a Sunday Times report on the industry. Rising energy costs, competition from China and a lack of demand from the construction industry were all highlighted as problems affecting the steel sector. The report revealed that global demand for steel has slumped by 30 per cent since 2007. And it says that with demand below expectations, there is over-capacity at Tata – and claims the Scunthorpe works is operating well below its 4.5m-ton capacity, churning out 3.2m tons last year, or 71 per cent of potential. Tata Steel has not commented on the report. But the analysis makes grim reading for steel bosses. In one section, it states: "The former Corus business, now called Tata Steel Europe, is weighed down by £3.4bn of debt and reported a pre-tax loss of £846m in the year to the end of March 2012. "Big users, such as the construction and infrastructure sectors, are flatlining. Traditional sources of bank or debt market funding for projects have dried up and the coalition's efforts to unlock investment have foundered. "So, while the public is focused on how austerity threatens frontline public services such as health, Britain's steel-making industry has quietly slipped onto the critical list."
Reported by This is 7 hours ago.
This is Scunthorpe -- THE challenges facing Tata Steel were put in the spotlight in a Sunday Times report on the industry. Rising energy costs, competition from China and a lack of demand from the construction industry were all highlighted as problems affecting the steel sector. The report revealed that global demand for steel has slumped by 30 per cent since 2007. And it says that with demand below expectations, there is over-capacity at Tata – and claims the Scunthorpe works is operating well below its 4.5m-ton capacity, churning out 3.2m tons last year, or 71 per cent of potential. Tata Steel has not commented on the report. But the analysis makes grim reading for steel bosses. In one section, it states: "The former Corus business, now called Tata Steel Europe, is weighed down by £3.4bn of debt and reported a pre-tax loss of £846m in the year to the end of March 2012. "Big users, such as the construction and infrastructure sectors, are flatlining. Traditional sources of bank or debt market funding for projects have dried up and the coalition's efforts to unlock investment have foundered. "So, while the public is focused on how austerity threatens frontline public services such as health, Britain's steel-making industry has quietly slipped onto the critical list."
Reported by This is 7 hours ago.