London: India’s biggest steelmaker Tata Steel is set to merge its British unit Corus with itself by next year to save costs up to £350 million, and the move is likely to put thousands of jobs at risk, a media report has said.
“Corus, the former British Steel, is to be merged with its parent company, India’s Tata Steel, in a move that puts thousands more UK jobs at risk,” The Mail said in its online edition.
Corus merger puts jobs in jeopardy as Indian steel giant aims to cut costs in the UK by £350 million, the report added.
Tata Steel through this merger aims to create a group that could become the second biggest steel maker in the world after Luxembourg-based ArcelorMittal, the report further said.
“News of the plan could undermine delicate negotiations in which unions are discussing accepting pay cuts of up to 10% for the workforce of 25,000, including the 1,000 workers at the threatened Llanwern steel works in South Wales,” The Mail added.
Quoting Alan Todd, construction and development general manager at Corus, the report said : “Tata Steel’s construction-related assets would benefit from Corus in the UK and the Continent and there would also be huge cost benefits from Tata’s supply of raw materials”.
Earlier, on 11 December, Corus was offered by its worker unions to carry out 10% cut in pays for six months in a last ditch to save a factory in Wales from closure.
Tata Group had acquired the Anglo-Dutch giant Corus Group Plc for $12 billion last year, pursuant to which Corus became a subsidiary of the Indian steel giant.