Tata Steel requests supplier price cuts

Long Products business wants an immediate 10% reduction in prices, according to reports, and a 30% long-term

Tata Steel's Long Products business has written to its suppliers asking for a reduction in their prices.

The company is looking for an immediate 10% reduction in prices, according to reports, and a 30% long-term price reduction.

A company spokesman confirmed that Tata's Long Products Europe business has been in dialogue with suppliers using a number of methods for more than a month.

He said: “Initially some were spoken to directly while others were contacted by letter to begin a consultation process. The response has been overwhelmingly positive and we have already had excellent and innovate suggestions from suppliers as to how we can work together to protect supply chains and relationships in the future.

“The current position of the UK steel industry is no secret and has been explained in all communications with suppliers. We have been open about the challenges we face and wish to continue the dialogue we have initiated with suppliers as we look for better ways of working together,” he added.

In October the company announced it was to cut up to 500 jobs at its steel factories in Scunthorpe, Teesside and Workington because of weak demand in the construction industry.