TATA STEEL TATA TESS Tata Stee! Europe announces further refocusing of speciality and bar business on high-value markets ‘eduly 2015 Tata Stee! Europe today announced the next stage nits plans to refocus ts specialty and bar business on high-value markets such as aerospace. ‘The proposed changes would result ina reduction in employee numbers, mainly at its Rotherham-based bar busines. Ths has been underperforming inthe face of commodty- ‘rade ste! belng imperted tothe UK due tothe strong pound and high electricity costs which ‘are more than double those of key European competitors (‘see notes to editor). “Tala Stee! Europe has Mentiied 720 positions which wil potentially become redundant However, the company will work closely with those at risk and ther trade union representative to redeploy employees and minimise the number of compulsory redundancies. ai Koehler, Chief Executive of Tata Stee's European operations, said: ‘We have invested ‘mare than £20 milion in recent year in our specialty steels business. These investments have created a stronger and more technicaly advanced platform from which we can meet the eds of our customers, with an improved range and quality of products and services. “However, energy is one of our largest costs at our specialty and ber business and we are disadvantaged by the UK's epplingly high eletrity costs, And while the UK Government ‘anrounced helpful measures to reduce the impact ofits high energy taxes afew years ago, ‘these measures sil haven't been introduced “We wantto pay our role in reinvigorating the UK's manufacturing industry, but increasing Imgorts and high energy costs have futher undermined the competitiveness of foundations industies, ieee a“Now the time for government to act. Foundation indus lke ours urgently need a ccompettive business environment and a government wiling to strengthen UK manufacturing ‘supply chains. This would ensure the UK remains an atractve place to inves. “realise how distressing this news wil befor all those affected, but | am also extremely aware ‘of cur responsibilty towards the ongoing survival of this business which will continue to ‘employ about 1,500 people in South Yorkshire" Mark Brosholme, Managing Director of Tata Stee’ specialty and bar business, said: We have to recognise that economic circumstances continue to undermine the work Tata Stes! has done to build eustainable business here, We started the journey of refocusing our speciality business in 2009 on making and supplying hign quality safety-crtical steel tothe wora's most demanding applications. That work has led to significant investments in our capabilty to make high-value stels fr the aerospace and ‘other demanding markets, Today, we are the world's thr largest supplier of aerospace stele ‘and we want to bull on this, “Teday’s announcement about reshaping the bar business isthe next stage in that journey and would ive ithe best chance to succeed in these ircely-compeitive markets “The consultation process begins today with our employees an their trade union representatives. Of course, we wll seek to minimise the impact ofthis restructuring on our employees.” Resent investments by Tata Stee! Europe in its speciality steels business include five new remeting furaces capable of producing the advanced materials demanded by customers MrBroxholme added: "We want to continue the investment i this business to improve the ange of high-value products and services for our target markets” “Tala Stee! Europe's subsidiary UK Stee! Enterprise wil look at how it can provide more support the local communes affected by today’s announcement and help stimulate new Job creation in those areas. Over the last four decades the organisation has helped to ‘egenerate local economies wth £85m of support and created 75,000 new jobs across the UK Notes to eaitors The folowing chart was comp by Tata Stoo using market ta and tough intemal analysisCurrent electricity prices for large energy users: Forfurtserifmation, contact Damien Brook on T. +44 (1742 405788 or amien brook Matas com About Tata Stel European operations ‘ata Stel s Europe's eocond largest soe producer, wih steelmaking inthe UK and Netherlands, and ‘anufacuing plants aefoss Europe. Te company suppieshigh-qualty ste product the most demanding markets icoding constuction, automotive, packaging a, ing & excavating. energy and fserospace Tata Stel works wih customers to sevelop new seal products at gvo them & competive tdge, Te combined Tota Soe g'oup sone of te wor’ argos tel producer, wih astael caps ‘ary 30 milion tonnes and 80,000 employees across ve contnents Follow us Jeraasiectxope eonpanytat-stee-europe tastes rope re)