Steel plant is given one year to break even

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Corby’s struggling Tata Steel tubes plant has been told it has to break even within a year.

The site is reportedly losing £17m a year and in January it was announced 110 jobs would be lost. Bosses have now set a deadline for the 700 employees at the site to help the business break even by March 2013.

An internal Tata newsletter seen by the Evening Telegraph says the businesses in Corby and Holland “have to return to minimum break-even by the end of the 2012-13 financial year”.

In the newsletter, the company’s financial director for tubes Jonathan Baxter said: “The bottom line is we have to deliver.

“To get there we must reduce operational costs, whether that’s spending less on hiring or maintenance, without impacting on safety.”

A member of staff who contacted the Evening Telegraph anonymously said morale is low at the site.

Regarding the £17m figure, Tata spokesman Robert Dangerfield said: “The site currently runs at a loss.

“The company tends to be very transparent so I’d not be surprised if this was a figure quoted in an internal briefing.”

He added the target of break ing even was “not a deadline”.

He said a taskforce has been created, together with Corby Council, to help employees facing redundancy.

Corby Council leader Cllr Tom Beattie said: “We are prepared to work with Tata and other companies that have recently announced job losses to try and mitigate the impact of that.”