Jobs threat for 400 steel workers in UK

Around 400 jobs were under threat today after the owner of a steel tube-making plant announced plans to halt production.

US engineering firm Timken said it intended to pull its European seamless steel tube-making operation based at Desford, near Leicester.

The news will come as a blow to 400 workers at the plant, although the company stressed today it was seeking “alternative solutions to closure”.

Timken said the facility generated between $85m (€67.8m) and $95m(€75.8m) in sales each year, but is not profitable.

Spokesman Jeff Dafler said the business had been troubled by spiralling fuel bills and a decision had been made to find an alternative source for its steel tubes.

The company, which has similar factories in the US – but no others in Europe, supplies the ultra strong tubes for use in the car making industry.

Company president Salvatore Miraglia said: “The proposed action is part of the company’s strategy to focus on lines of business that produce differentiated products while driving profitable growth.

“Exiting this business would further advance the focus of the steel group on differentiated products that deliver value to both customers and shareholders.”

Timken also runs a rail bearings factory in Northampton, and an aerospace plant in Wolverhampton, as well as facilities in Coventry and Sheffield. Mr Dafler stressed today’s announcement did not affect jobs at the other UK sites.

The company is due to meet with trade union officials soon to discuss the announcement. A timetable for the process is not yet known.

Around 3,800 people live in Desford, which is situated between Leicester and Hinckley.

Timken has a network of operations in 27 countries around the world and generated annual sales of $ 5.2bn (€4.15bn) in 2005. The group employs 27,000 people.