Steel Strip

(Reuters) - India’s Tata Steel  is to merge its British unit Corus, formerly known as British Steel, in a cost-cutting move that could threaten thousands of UK jobs, a British Sunday newspaper reported.

The proposed merger next year would result in the creation of the world’s second biggest steel maker after ArcelorMittal , according to a report in the Mail on Sunday.

The plan could cause plant closures and job losses across the UK at a time when Corus and unions are trying to prevent redundancies by discussing potential pay cuts of up to 10 percent for the firm’s 25,000 workers, the newspaper said.

The move was part of plans by Tata to cut costs in the UK by 350 million pounds ($521 million) following the Indian industrial giant’s acquisition of Corus, which was agreed in 2006.

No-one from Corus was available on Sunday to comment.

Read the full story at Reuters