Monday, April 29, 2013

News: Tata to close Rotherham site - reports

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Tata Steel intends to close the Swinden Technology Centre (STC) in Rotherham, according to reports in a national newspaper.

The Sunday Times reported yesterday that the Indian-owned steelmaker has warned the government that it intends to close two technology centres, in Rotherham and on Teeside, over the next 18 months. The paper's Westminster source adding that it would move the research to the Netherlands and India.

The STC, on Moorgate, is the main R&D site in the UK. Employing around 200 staff, it focuses on product research and applications research for the transport, engineering and building and construction sectors. It specialises in mechanical testing, welding and fatigue analysis and is pioneering ways to reduce steel production's impact on the environment.

United Steels acquired the site in 1946 and in addition to state of the art laboratories, it also includes Swinden House, the former home of Rotherham solicitor Thomas Badger, plus playing fields, tennis courts, a club house and orchards.

Last year, The National Metals Technology Centre (NAMTEC) moved out of Swinden House and across Rotherham to the Advanced Manufacturing Park (AMP) to join the University of Sheffield's Advanced Manufacturing Research Centre (AMRC) with Boeing.

Just over 2,000 people are employed at Tata Steel in South Yorkshire and sites including Stocksbridge and Aldwarke specialise in the production of high grade and special steels for the world's leading companies in markets ranging from automotive to aerospace, civil engineering to component manufacturing, energy industries to consumer goods.

The speciality steels business is performing well but high raw material prices and sliding demand continue to be key problems for European steelmakers. In its most recent financial reports, Tata Steel posted a loss for its European operation of £51.2m for the third quarter of 2012/13, down from an £5.2m loss the previous quarter but up from a £93.2m loss in the same quarter last year.

Corus joined the Tata Steel family in April 2007 in a £6 billion transaction that created one of the world's largest steelmakers.

Major restructuring saw the company announce that 1,100 jobs would be lost in Rotherham in 2009. A restructure of its UK operations announced in November 2012 included £2.7m being invested in Rotherham but over 100 local jobs put at risk of redundancy.

The reports regarding the R&D centres follows on from rumours from the Indian sub-continent that Tata Steel is planning to sell of some of its UK assets to reduce its debt burden.

Local staff have been updated by directors indicating that "a key point of the news is incorrect" and that investment in R&D in the UK is on track.

A spokesperson from Unite said: "Tata have informed the unions that the story is wrong and it has no plans to close R&D in the UK."

Tata Steel website
Sunday Times article

Images: Tata

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