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Tata Steel may cut 720 jobs in its speciality steel business as low-priced imports from China and high production costs impact its ability to compete in the cut-throat UK market. Most of the jobs will be slashed at the company’s Rotherham, northern England plant, the metals giant said Thursday. Cheap foreign imports due to a strong pound and expensive electricity costs, which is more than double of its nearest competitors, is forcing Tata Steel to look at restructuring its speciality steel business.

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Tata Steel may cut 720 jobs in its speciality steel business as low-priced imports from China and high production costs impact its ability to compete in the cut-throat UK market. Most of the jobs will be slashed at the company’s Rotherham, northern England plant, the metals giant said Thursday. Cheap foreign imports due to a strong pound and expensive electricity costs, which is more than double of its nearest competitors, is forcing Tata Steel to look at restructuring its speciality steel business. The unit will now concentrate more on high-value sectors like aerospace. Tata Steel is currently the world’s third-largest steel supplier to the aerospace industry. The proposed job cut announcement comes a day after Tata Steel‘s UK workers agreed to a new pension scheme, which prevented a potential strike that could have been the biggest industrial dispute in Britain’s steel sector in more than three decades. “Energy is one of our largest costs at our speciality and bar business and we are disadvantaged by the UK’s cripplingly high electricity costs,” said Karl Koehler, Europe head at Tata Steel, which in recent years has invested over 20 million pounds in the business.

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