Hi-tech investment at steel plant secures jobs of 2,000 workers

Tata Steel, formerly known as Corus, is spending the money on hi-tech equipment for its Stocksbridge plant in South Yorkshire, helping secure the jobs of 2,000 steelworkers.

The investment will increase production of aerospace steels and is a welcome lift to the sector after the Government cancelled an 80m loan to Sheffield Forgemasters in June.

It is in contrast to the gloom felt when the company announced 1,700 job losses in South Yorkshire last year and the potential mothballing of its Redcar plant, which threatened 2,000 jobs.

But the latest investment has been welcomed by both politicians and union leaders, and comes after Tata has already recruited about 350 people this year.

Angela Smith, Labour MP for Penistone and Stocksbridge, said: "It's great news for the steel industry and great news for South Yorkshire. It comes after 18 months of worry and anxiety for steelworkers in our area.

"I'm very pleased that the jobs of 2,000 are more secure and I think it's a real vote of confidence in the strength of the workforce.

"There is an excellent relationship between the union and the company. Everybody is focussed on making sure they produce the right products for the right markets and that is what gives me confidence in the future."

Tata announced plans to axe 1,700 jobs in South Yorkshire last year, although it ended up cutting about 1,150 after market conditions and the business's performance picked up.

In May 2009, Tata announced a consultation on the future of its Redcar plant in Teesside, which threatened the jobs of 2,000 workers.

But only the iron and steel making areas of the plant were mothballed in February 2010, which left other parts in operation and meant that just over half lost their jobs instead.

Problems in the car industry at the height of the recession meant Tata was producing 25 per cent of its previous output, so the company refocussed on high-technology markets.

Tata's two new remelting furnaces and testing equipment will boost its aerospace steel output by 30 per cent, creating 10 new jobs and securing the positions of 2,000 staff.

Coun Paul Scriven, Sheffield City Council leader said: "This investment is fantastic news. The Stocksbridge workers have a real family spirit so I know that the good news will be spread throughout the local community."

The company believes the aircraft industry will grow strongly in the coming years to cater for more passengers in emerging economies, global air freight and fuel-efficient planes.

Peter Hogg, Tata Steel Speciality's general manager, said: "This investment will make us stronger and help secure the jobs of 2,000 South Yorkshire steelworkers. It's a big confidence boost.

"As the demand for aerospace steel increases, it's vital we have the ability to increase our production of this highly technical and demanding product, which is used in aircraft landing gear, engines, wings and other safety-critical components."

Mick Watling, 38, the plant's union branch secretary, said: "It's extremely welcome and it's very good news. It's good for business. In the last 18 months the union and management have worked together strongly.

"We're passionate people. Some families have worked here for many generations and they are as passionate now as they were 100 years ago."