Steel firm writes down value of its assets

The Tata plant in Corby
The Tata plant in Corby

Tata Steel, one of the world’s biggest steelmakers which has a plant in Corby, has announced a £1bn writedown on the value of its European assets.

The company, which bought steelmaker Corus in 2008, blamed weak European markets and said the difficult trading conditions would “continue over the near and medium term”.

In February Tata Steel’s European operations reported a £50m loss, and last year it cut almost 500 jobs at its steelworks in Port Talbot. The company employs about 33,000 people in Europe, of which more than 18,000 work in the UK, including hundreds at its plant in Corby.

The company said that European steel demand fell by nearly eight per cent last year.

Tata Steel is part of the huge Indian Tata Group, which also owns Jaguar Land Rover.