Mumbai: Tata Steel's scrip on Tuesday fell by 3 per cent after the company announced it will cut around 1,200 jobs in Europe under a restructuring plan to deal with "flood of cheap imports" from China and other places.
The company’s stock ended the day with a loss of 2.96 per cent at Rs 240.80 on the BSE. During the day, it went down by 3.28 per cent to Rs 240. On the NSE, shares of the company dipped by 3 per cent to Rs 240.80.
The company's market valuation fell by Rs 713.13 crore to Rs 23,386.87 crore. In terms of volume, 10.48 lakh shares of the company changed hands at BSE and over 52 lakh shares were traded at the NSE during the day.
The company, which will stop making steel plate at its Long Products Europe business, also blamed high power costs a strong pound for the proposed moves.
"As a result, Tata Steel has been forced to make changes to its Long Products Europe business. The proposed changes would lead to around 1,200 job losses, about 900 in Scunthorpe and 270 in Scotland as well as a small number at other Long Products Europe sites," it said in a statement.
The business announced proposals to stop production of steel plate. This comes in response to a shift in market conditions caused by a flood of cheap imports, particularly from China, a strong pound and high electricity costs, it added.
