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The Masked Tulip

Tata To Halt Production At Trostre Works For Week

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Steelmaker Tata is to halt production for a week at its Trostre tinplate works in Llanelli expressing serious concerns about the economy.

The company says the economic recovery is looking very fragile.

More than 700 people are employed at Trostre but the temporary halt in production will not lead to any job losses.

Tata said staff will work in areas like maintenance and training rather than in production for the week in October.

There will be no overtime during the week.

It will mean 9,000 tonnes of tinned packaging will not be manufactured.

The company said the stocks of its customers were full and it had to realign capacity with demand.

A spokesman said: "This is quite significant because Trostre has been going flat out for the past 18 months.

"This fragile recovery is looking very fragile."

This is a good economic indicator. Steel works are very much like IT - first into recession, first out.

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Of particular concern to HPCers.

In terms of the general outlook for the steel industry, the spokesman for Tata said: "We are very concerned about the bottom line. The indicators are very worrying indeed.

"We have been weathering a prolonged storm."

Trostre makes tinned products for a range of companies. One of its biggest customers is Heinz.

BBC Wales business correspondent Nick Servini said: "This is the first time a Tata spokesman in Wales has spoken openly about the concerns the company has about the general recovery.

"The steel industry is commonly known as one of the best barometers out there for the economy.

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The last time it closed was in March 2007 when it closed for 2 weeks, after that it went on reduced production for a couple of years after that.

History seems to be repeating from 2007, although this time the hole we're in seems much deeper :(

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I thought the recovery was to be a 'manufacturing recovery'.

TATA, and Indian company, is the largest manufacturer in the UK!

I thought the recovery was in the burger flipping industry? :)

It's a strange beast this recovery, never knew where or when it may show up :lol:

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  • 343 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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