Tata Steel posts £840m loss

INDIA’S Tata Steel plunged into the red last year with losses of £840 million after writing £1 billion off the value of its European arm, which employs 18,500 people in the UK.

Tata said “severely depressed conditions” in Europe and the UK had left steel demand almost 30 per cent lower than 2008 levels – leading to last week’s write-down – although underlying performance in the region had improved with increased volumes in the past quarter.

The company did not give a pre-tax profit figure for its European arm. The overall group figure, excluding the impairment, was £387.7m in the black, down from £621.6m.

Trade unions have said Tata’s woes will concern staff in the UK, after 900 job cuts last year.