Tata Steel have confirmed that they will be cutting 1200 jobs in Scunthorpe and Scotland.
Scunthorpe will be the hardest hit with 900 people losing their jobs.
Tata Steel were quick to blame Chinese in a statement published on their website they claim subsidised steel prices, however their appears to be more to it as many official figures point the blame at a multitude of issues.
Jeremy Nicholson, director of the Energy Intensive Users Group believes that the price of energy it too high blaming the UK Energy Policy for forcing up production costs. He claimed that electricity costs are uncompetitive in comparison with other EU countries as well as world wide.
Labour’s Shadow Trade Minister Kevin Brennan has accused the Conservatives of “spinning” on their promise to provide support to areas affected by Steel Industry closures. Kevin Brennan questioned the house of commons today saying “They (the Conservatives) seem content to allow Britain’s entire steel making industry to disappear in the face of blatant Chinese dumping.”
Business Secretary Sajid Javid defended the conservatives saying the government cannot change the price of steel. He also promised that the government is doing all it can to support people affected by the current state od the steel industry. However he was told of by the speaker of House of Commons for taking twice as long as he should have to answer the question proposed by the shadow minister.
Speaker John Bercow described Mr Javid’s behaviour as; “Discourteous and incompetent”.
Peter Matthews, chairman of Black Country Metals believes that China is being made a scapegoat and places some of the responsibility on UK companies. He also has told the BBC that the strength of the pound makes British exports more expensive and made out their is an issue with languages in UK business.
Nicola Sturgeon has promised to fight for the future of the steel industry by setting up a task force.
In a statement from Tata today they blamed the competition of cheaper Chinese subsidised steel causing an over all drop in the price of steel on the global market.
Their is speculation about who exactly will be losing their jobs.
The main Scunthorpe sites affected by closures will be the coke ovens, the plate mill and the distribution centre. This does not account for the full amount of job losses so it is not yet certain who else will lose their jobs.
This comes as David Cameron is trying to build relations with China and is entertaining a state visit today.
