Reuters reported that Essar Steel is reducing stocks at its steel processing facility in Dudley, ahead of the financial year end and will restock once market demand improves.

Mr Andrew Turpin, a spokesman for the company, said that "Essar is committed to the UK steel market, which it sees as having a lot of potential into the long term, and is committed to the business and employees at Dudley. The only change currently taking place is some destocking ahead of the end of the financial year. New products and stocks will be brought in due course and as market demand improves."

Weak market conditions have pushed some steel producers and processors in Britain and Western Europe to cut, or shut down operations in the last few months. TATA Steel for example said it will cut about 200 jobs at four of its five European steel tube producing plants, one of which is based in Britain.

Essar UK has processed steel at a 300,000 tonnes a year rate in the last few months and has a maximum capacity of 500,000 tonnes per year. The Indian steel conglomerate acquired the Dudley plant, in the West Midlands in June 2010.

(Sourced from www.reuters.com)