RESENDING WITH FULL SCRIPT Tata Steel announces that they are set to lose 1,200 jobs at their British steelworks, possibly due to cheaper Chinese imports, on the day that British Prime Minister David Cameron meets Chinese President Xi Jinping. SHOWS: UNKNOWN LOCATIONS (FILE) (ITN RESTRICTIONS - TV: No access all domestic and international channels distributed in UK and Eire on Sky/Virgin/Freeview; BBC/BSKYB GROUP : No access worldwide any media; INTERNET: No access.co.uk web sites and all websites principally targeted at the UK and/or Eire; MOBILE: No access worldwide; NO USE AFTER 20/11/15 (ie. 30 days from first usage) ON ALL PLATFORMS - for re-use contact sales[at]itnsource.com) 1. VARIOUS OF WHITE SMOKE RISING FROM STEELWORKS IN BRITAIN 2. TRUCKS DRIVING INTO STEELWORKS 3. SIGN READING (English): "TATA STEEL" ON SIDE OF STEELWORKS 4. CAPARO STEELWORKS LONDON, ENGLAND, UNITED KINGDOM (OCTOBER 20, 2015) (REUTERS - ACCESS ALL) 5. (SOUNDBITE) (English) CMC MARKETS ANALYST, JASPER LAWLER, SAYING: "What we do know is that the prices that they're able to sell at do undercut those in the UK. Now, obviously an element of that is a cheaper labour force; they're able to produce things at a cheaper cost, that's the nature of markets - they'll be able to produce more and get a larger market share. But the sense is that maybe the price that they're selling steel at is not actually even obtainable with their costs. It is being subsidised, and that is really an act to destabilise industry in the UK and other countries and help build up their own industry until such time as they're strong enough to stand up on their own two feet." UNKNOWN LOCATIONS (FILE) (ITN RESTRICTIONS - TV: No access all domestic and international channels distributed in UK and Eire on Sky/Virgin/Freeview; BBC/BSKYB GROUP : No access worldwide any media; INTERNET: No access.co.uk web sites and all websites principally targeted at the UK and/or Eire; MOBILE: No access worldwide; NO USE AFTER 20/11/15 (ie. 30 days from first usage) ON ALL PLATFORMS - for re-use contact sales[at]itnsource.com) 6. VARIOUS OF SMOKE RISING FROM STEELWORKS 7. VARIOUS OF STEEL BEING PRODUCED INSIDE BRITISH STEELWORKS STORY: Tata Steel, the biggest steelmaker in Britain, may cut about 1,200 jobs as part of plans to restructure its struggling operations, it said on Tuesday (October 20). The move would be another blow to the UK steel sector, hit by weak steel prices, after the liquidation of the UK's second-largest steelmaker SSI UK was announced this month. Tata plans to halt production of steel plate, which would lead to about 900 job losses in Scunthorpe in northern England and 270 in Scotland, plus a small number at other sites, it said in a statement. Scunthorpe, which produces steel mainly used in construction and infrastructure projects, is part of Tata Steel's loss-making long products unit, which the company is trying to sell. The unit employs about 6,500 people. Tata's decision puts more pressure on British Prime Minister David Cameron, who said on Monday (October 19) he would raise the issue of subsidised steel with China during a visit to Britain this week by President Xi Jinping. Hailed as the beginning of a 'golden era' or 'golden time' in Sino-British relations, the visit, which will seal a host of business deals, has been criticised by activists who accuse Cameron of turning a blind eye to abuses, and by steelworkers who believe they they can no longer compete with cheaper, subsidised, Chinese imports. CMC market analyst Jasper Lawler says that China's subsidies to the steel industry have made the market unfair for European manufacturers. "What we do know is that the prices that they're able to sell at do undercut those in the UK. Now, obviously an element of that is a cheaper labour force; they're able to produce things at a cheaper cost, that's the nature of markets - they'll be able to produce more and get a larger market share," Lawler told Reuters on Tuesday. "But the sense is that maybe the price that they're selling steel at is not actually even obtainable with their costs. It is being subsidised, and that is really an act to destabilise industry in the UK and other countries and help build up their own industry until such time as they're strong enough to stand up on their own two feet." Cameron is also facing pressure from members of his own party to address the issue with Xi. Britain's business minister Sajid Javid said on Tuesday that China is the main country behind a global oversupply of steel that has forced the price of steel down.

• published: 21 Oct 2015
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