British Tata Steel Collapse What Happened?

Jaworski, Piotr Marek

Abstract

Any firm, large or small, must generate profit. The only difference between them is that the former can sustain the losses for
longer. However, is a 2 billion pounds loss in five years enough to quit? For Tata Steel, it was and we cannot blame it for
this. The reasons for such decision listed by the firm were, among others, huge surplus of steel in the world market and
high costs of its production in the UK.
This is not the first British producer, which closed its steel mills. In September 2015, Sahaviriya Steel Industries UK, 100
percent owned by Thailand’s largest steel producer, Sahaviriya Steel Industries PLC, stopped its production in North East
England Recar plant citing poor trading conditions and a drop in world steel prices. This left only 450 workers out of 2150
just to keep the plant up until better times. Tata also tried to survive by cutting its labour. Since the middle of 2015, it
dismissed 3000 workers....

Citation

Jaworski, P. M. (2016). British Tata Steel Collapse What Happened?. Extraordinary and Plenipotentiary Diplomatist, May 2016,

• Journal Article Type: Article
• Acceptance Date: Apr 1, 2016
• Publication Date: May 1, 2016
• Deposit Date: Aug 19, 2016
• Publicly Available Date: Aug 19, 2016
• Journal: Extraordinary and Plenipotentiary Diplomatist
• Print ISSN: 2349-557X
• Peer Reviewed: Not Peer Reviewed
• Volume: May 2016
• Keywords: Steel works, risk, market forces,
• Public URL: http://researchrepository.napier.ac.uk/Output/355587