Demand currently at two-thirds of 2007 level

Tata Steel is cutting up to 1,500 jobs after it said demand for structural steel in the UK is only two-thirds of the 2007 level and is not expected to recover within the next five years.

Up to 1,500 jobs could go at its Scunthorpe and Teesside plants.

In a statement, the group said its 鈥渞estructure鈥� was also partly prompted by uncertainty over UK carbon cost rises.

Karl-Ulrich K枚hler, Tata Steel Europe chief executive, said: 鈥淭he continuing weakness in market conditions is one of the main reasons we are setting out on this difficult course of action; another is the regulatory outlook鈥�.

In March the government announced a carbon floor price of 拢16/t from 2013, which K枚hler branded a 鈥減otentially severe blow鈥� to the sustainability of UK steelmaking.

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