Hundreds of jobs go at steelworks

More than 200 jobs are to go at the specialist Sheffield steel works

A steelworks in South Yorkshire is to close with the loss of 230 jobs as production is switched to Sweden.

Outokumpu said it was closing its plant in Sheffield in an attempt to cut costs and make savings.

In a statement the firm said the plant in Meadowhall, which makes foils of steel, would close early in 2009 and talks were under way with unions.

Last year, 130 jobs went at the company's Stocksbridge plant, which is also in South Yorkshire.

A statement on the company's website said cost cutting and a need to "remain competitive" had prompted the latest closure.

It said: "Outokumpu is announcing its intention to close its thin strip business at Meadowhall in Sheffield.

"The market for stainless precision strip is over-supplied and this business in Sheffield has been loss-making for several years. The proposal is part of Outokumpu's performance improvement actions to ensure global competitiveness."

The closure of operations is estimated to result in a reduction of 16m euros (�12.7m) in annual fixed costs from the second quarter of 2009 onwards.

Bo Annvik, a senior manager of the Swedish company, said: "Today's difficult announcement is a result of a very thorough analysis.

"We aim to continuously improve our competitiveness and despite the commitment and excellent work in the Sheffield Thin Strip business, we do not anticipate material improvement in the highly competitive precision strip market."

The Meadowhall plant produces specialised very thin forms of stainless steel strip products.

In 2007, its total stainless steel deliveries were 12,000 tonnes.

Outokumpu plans to transfer most of the business to its Kloster unit in Langshyttan, Sweden, which produces similar products.

Steve Stacey, Regional Director of Community Union said: "Community Union is disappointed and saddened by today's announcement by Outokumpu that it is closing the thin strip business at Meadowhall.

"The decision that will result in a large number of Community Union members losing their jobs and the effect this will have on their families.

"Community will do everything in its power to work with the company to save jobs where they can be saved and to help those affected through this difficult time."

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