Indian-owned steelmaker Tata Steel has announced that it will put its entire UK business up for sale, after failing to turn the failing Port Talbot plant around.
After a major board meeting in Mumbai, the company announced plans to exit Britain’s steel-making industry in order to stem heavy losses. Despite being one of the largest companies in Wales and employing over 4,000 people, the plant at Port Talbot is thought to be losing over £1 million per day, failing to compete with cheaper exports from China.
“Given the severity of the funding requirement in the foreseeable future, the Tata Steel Europe Board will be advised to evaluate and implement the most feasible option in a time-bound manner”, Tata said in a statement.
Unions welcomed the decision not to close down the plants but called on Tata to be a “responsible seller” and on the government to play its role. The UK and Welsh governments have issued a joint statement, saying that they are “committed to working with Tata and the unions on a long-term sustainable future for British steel-making”.
However, Roy Rickhuss, general secretary of steelworkers’ trade union Community, responded:
“We don’t want just want more warm words, we want a detailed plan of action to find buyers and build confidence in potential investors in UK steel.
It is understood there have been extensive talks between the government and ministers, and the state are keen to intervene. Labour leader Jeremy Corbyn has already called for ministers to act to protect the steel industry and “the core of manufacturing in Britain”.
30/03/2016
