This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.theguardian.com/business/live/2015/oct/20/steel-crisis-grows-as-tata-unveils-job-cuts-business-live
The article has changed 14 times. There is an RSS feed of changes available.
| Version 12 | Version 13 |
|---|---|
| Steel crisis grows as Tata confirms 1,200 job cuts – as it happened | Steel crisis grows as Tata confirms 1,200 job cuts – as it happened |
| (25 days later) | |
| 5.31pm BST | 5.31pm BST |
| 17:31 | 17:31 |
| We are wrapping up for the day. Thank you for all your great comments, and we’ll be back tomorrow. | We are wrapping up for the day. Thank you for all your great comments, and we’ll be back tomorrow. |
| 5.11pm BST | 5.11pm BST |
| 17:11 | 17:11 |
| The Chinese president, Xi Jinping, has lauded the close ties between his country and Britain during a speech to the UK parliament. It is the first full day of his four-day state visit to Britain, aimed at boosting trade. | The Chinese president, Xi Jinping, has lauded the close ties between his country and Britain during a speech to the UK parliament. It is the first full day of his four-day state visit to Britain, aimed at boosting trade. |
| It is fair to say that China and the UK are increasingly interdependent and are becoming a community of shared interests. | It is fair to say that China and the UK are increasingly interdependent and are becoming a community of shared interests. |
| I am already deeply impressed by the vitality of China-UK relations and the profound friendship between our peoples.” | I am already deeply impressed by the vitality of China-UK relations and the profound friendship between our peoples.” |
| Unsurprisingly, there was no mention of steel dumping. | Unsurprisingly, there was no mention of steel dumping. |
| 4.32pm BST | 4.32pm BST |
| 16:32 | 16:32 |
| About half of the 1.6bn tonnes of steel made globally comes from China, and firms operating in the UK simply can’t compete, says Guardian contributor Karl West. He writes: | About half of the 1.6bn tonnes of steel made globally comes from China, and firms operating in the UK simply can’t compete, says Guardian contributor Karl West. He writes: |
| The latest grim chapter in the long, slow death of Britain’s steel industry may have been decided in India, but it was scripted in Beijing. | The latest grim chapter in the long, slow death of Britain’s steel industry may have been decided in India, but it was scripted in Beijing. |
| Tata Steel, owned by the Indian conglomerate Tata Group, has been hammered by a toxic cocktail of high green taxes on emissions, a strong pound, slowing demand and cheap Chinese competition. | Tata Steel, owned by the Indian conglomerate Tata Group, has been hammered by a toxic cocktail of high green taxes on emissions, a strong pound, slowing demand and cheap Chinese competition. |
| In the past 18 months, China has flooded the market with cheap, subsidised steel as its economic growth has slowed. Beijing wants to grab whatever foreign cash it can on global markets by selling its products at a knockdown rate. | In the past 18 months, China has flooded the market with cheap, subsidised steel as its economic growth has slowed. Beijing wants to grab whatever foreign cash it can on global markets by selling its products at a knockdown rate. |
| As Caparo becomes latest victim of crisis, pressure is on the business secretary and chancellor after last week’s emergency steel summit | As Caparo becomes latest victim of crisis, pressure is on the business secretary and chancellor after last week’s emergency steel summit |
| Gareth Stace, director of the industry body UK Steel, said: “Chinese steelmakers are fully subsidised by the Chinese government and their regions.” | Gareth Stace, director of the industry body UK Steel, said: “Chinese steelmakers are fully subsidised by the Chinese government and their regions.” |
| You can read the full story here. | You can read the full story here. |
| 4.22pm BST | 4.22pm BST |
| 16:22 | 16:22 |
| Hammond: UK can't build wall around steel industry | Hammond: UK can't build wall around steel industry |
| Just to recap, the UK’s foreign secretary, Philip Hammond, has indicated that the government won’t press the Chinese president, Xi Jinping, too hard on the “dumping” of steel. | Just to recap, the UK’s foreign secretary, Philip Hammond, has indicated that the government won’t press the Chinese president, Xi Jinping, too hard on the “dumping” of steel. |
| Hammond told the Today programme on BBC Radio 4: | Hammond told the Today programme on BBC Radio 4: |
| We have got to get the balance right: trying to protect our steel industry in a sensible way, which we are doing, but recognising that we are operating in a global economy. We can’t simply build a wall around the UK.” | We have got to get the balance right: trying to protect our steel industry in a sensible way, which we are doing, but recognising that we are operating in a global economy. We can’t simply build a wall around the UK.” |
| You can read the full story here. | You can read the full story here. |
| Updated | Updated |
| at 4.26pm BST | at 4.26pm BST |
| 3.21pm BST | 3.21pm BST |
| 15:21 | 15:21 |
| Govt to China: “Invest in UK. It’ll make you money” Govt to itself: “Don’t invest in UK. Cut, add more austerity, let steel industry die" | Govt to China: “Invest in UK. It’ll make you money” Govt to itself: “Don’t invest in UK. Cut, add more austerity, let steel industry die" |
| 3.18pm BST | 3.18pm BST |
| 15:18 | 15:18 |
| Management at Tata's Scunthorpe steel mill eyeing buyout - sources | Management at Tata's Scunthorpe steel mill eyeing buyout - sources |
| Guardian contributor Karl West has sent us this: | Guardian contributor Karl West has sent us this: |
| The management team at Tata Steel’s Scunthorpe steel mill are eyeing a buyout of the loss-making plant, according to sources. | The management team at Tata Steel’s Scunthorpe steel mill are eyeing a buyout of the loss-making plant, according to sources. |
| The Indian conglomerate that owns the rump of the former British Steel has been trying to offload its Scunthorpe-based long products division since a sale to Gary Klesch, the billionaire industrialist and owner of the Klesch Group of companies, fell through in August. | The Indian conglomerate that owns the rump of the former British Steel has been trying to offload its Scunthorpe-based long products division since a sale to Gary Klesch, the billionaire industrialist and owner of the Klesch Group of companies, fell through in August. |
| Tata yesterday confirmed it is cutting 1,200 jobs in the division, including 900 at Scunthorpe. The business has been hammered by cheap Chinese competition, making it uneconomical to produce steel for the rail and construction sectors in Britain. | Tata yesterday confirmed it is cutting 1,200 jobs in the division, including 900 at Scunthorpe. The business has been hammered by cheap Chinese competition, making it uneconomical to produce steel for the rail and construction sectors in Britain. |
| Fears are growing for the future of the North Lincolnshire plant. One source reckons Tata want to close the site and focus its resources on its sister operation in Port Talbot. | Fears are growing for the future of the North Lincolnshire plant. One source reckons Tata want to close the site and focus its resources on its sister operation in Port Talbot. |
| The source said: “The market will not change. I think they [Tata] are discussing various things to see if other people buy it [Scunthorpe]. At least they are giving it a try.” | The source said: “The market will not change. I think they [Tata] are discussing various things to see if other people buy it [Scunthorpe]. At least they are giving it a try.” |
| He said Tata is not currently in talks with any potential buyers, but noted it has discussed the possibility of a management buyout by the team currently in charge of the Scunthorpe steel mill. | He said Tata is not currently in talks with any potential buyers, but noted it has discussed the possibility of a management buyout by the team currently in charge of the Scunthorpe steel mill. |
| “They might be talking about a management buyout. But who is going to fund them [management] when the prognosis is so bad?” | “They might be talking about a management buyout. But who is going to fund them [management] when the prognosis is so bad?” |
| Tata could not be reached to comment. | Tata could not be reached to comment. |
| 2.32pm BST | 2.32pm BST |
| 14:32 | 14:32 |
| Outside Dalzell steel works in Motherwell https://t.co/QaQmVpEVd2 | Outside Dalzell steel works in Motherwell https://t.co/QaQmVpEVd2 |
| 2.16pm BST | 2.16pm BST |
| 14:16 | 14:16 |
| More from Libby Brooks, who has been speaking to Tata workers in Motherwell: | More from Libby Brooks, who has been speaking to Tata workers in Motherwell: |
| John McKenna, who worked at Ravenscraig before joining Dalzell eight years ago, said that he was ‘disappointed’ at the news. “I’m disappointed they’ve decided to treat us this way. I think there’s definitely a future if someone is in their right mind to take this on. There’s a good workforce here. There’s a future is the government wants to make it that way.” | John McKenna, who worked at Ravenscraig before joining Dalzell eight years ago, said that he was ‘disappointed’ at the news. “I’m disappointed they’ve decided to treat us this way. I think there’s definitely a future if someone is in their right mind to take this on. There’s a good workforce here. There’s a future is the government wants to make it that way.” |
| Andrew Crawford, who had worked at the plant for 26 years since the age of 20, said that he was “devastated”. | Andrew Crawford, who had worked at the plant for 26 years since the age of 20, said that he was “devastated”. |
| “My dad worked there. I’ve had friends just retire and there are young kids in there with families.” | “My dad worked there. I’ve had friends just retire and there are young kids in there with families.” |
| “They are good as said it was the end the steel industry in Scotland this morning. The way they spoke about the Chinese imports, that’s how it was explained to us.” | “They are good as said it was the end the steel industry in Scotland this morning. The way they spoke about the Chinese imports, that’s how it was explained to us.” |
| One worker hurrying away from the works summed up the mood of the workforce thus: “Scunnered”. | One worker hurrying away from the works summed up the mood of the workforce thus: “Scunnered”. |
| 2.01pm BST | 2.01pm BST |
| 14:01 | 14:01 |
| "Britain shouldn't shut its door on manufacturing" - Tata executive | "Britain shouldn't shut its door on manufacturing" - Tata executive |
| Another Tata executive has been speaking. After talking to workers in Scunthorpe, Bimlendra Jha, executive chairman of the Long Products Europe business, said (quotes from PA): | Another Tata executive has been speaking. After talking to workers in Scunthorpe, Bimlendra Jha, executive chairman of the Long Products Europe business, said (quotes from PA): |
| “These are very distressing times. | “These are very distressing times. |
| “It is not just a question of Tata Steel. It’s a question of manufacturing industry in Britain. | “It is not just a question of Tata Steel. It’s a question of manufacturing industry in Britain. |
| “It is a fight very clearly for the future of manufacturing industry in Britain. | “It is a fight very clearly for the future of manufacturing industry in Britain. |
| “We have to act in unison to put up a fight together.” | “We have to act in unison to put up a fight together.” |
| “In the cradle of the Industrial Revolution, I don’t want Britain to be the first country to shut its door on manufacturing.” | “In the cradle of the Industrial Revolution, I don’t want Britain to be the first country to shut its door on manufacturing.” |
| Updated | Updated |
| at 2.17pm BST | at 2.17pm BST |
| 1.48pm BST | 1.48pm BST |
| 13:48 | 13:48 |
| "Difficult to find a buyer for Motherwell plant" - Tata director | "Difficult to find a buyer for Motherwell plant" - Tata director |
| Libby Brooks | Libby Brooks |
| Tor Farquhar, human resources director for Tata Steel Europe, has been taking questions outside the Motherwell plant. | Tor Farquhar, human resources director for Tata Steel Europe, has been taking questions outside the Motherwell plant. |
| He says that this is a very difficult day for the company and workers: “This is the worst news you can ever give your employees.” | He says that this is a very difficult day for the company and workers: “This is the worst news you can ever give your employees.” |
| Asked whether he wanted to see more government intervention to counter the flooding of the market, in particular with Chinese steel, he replied: | Asked whether he wanted to see more government intervention to counter the flooding of the market, in particular with Chinese steel, he replied: |
| “This is a global issue. At a European level we have been fighting hard to have a level playing field so we don’t have subsidised steel entering the market. If I had one criticism it is that Europe has been quite slow to stop subsidised steel while the US has been much quicker.” | “This is a global issue. At a European level we have been fighting hard to have a level playing field so we don’t have subsidised steel entering the market. If I had one criticism it is that Europe has been quite slow to stop subsidised steel while the US has been much quicker.” |
| Referring to the steel task force set up by the Scottish government, he said: “This is not an issue that the UK or the Scottish government on their own can address. The truth is that global oversupply puts plants like this at risk.” | Referring to the steel task force set up by the Scottish government, he said: “This is not an issue that the UK or the Scottish government on their own can address. The truth is that global oversupply puts plants like this at risk.” |
| He suggested that finding a buyer for the works in the current climate would be extremely difficult. | He suggested that finding a buyer for the works in the current climate would be extremely difficult. |
| Farquhar also said that the UK and Chinese industries needed to find a balance: “The UK has and needs to maintain a manufacturing base alongside and complimentary to China. We believe there is a future for UK steel and a future in sales to China. This is not China versus the UK.” | Farquhar also said that the UK and Chinese industries needed to find a balance: “The UK has and needs to maintain a manufacturing base alongside and complimentary to China. We believe there is a future for UK steel and a future in sales to China. This is not China versus the UK.” |
| However, he said that he believed the steel works behind him had no future. “We’ve worked very hard for a long time to find a sustainable future for the plate base. It’s a very difficult decision and one we fought against but the global macro economic picture means we can’t find a viable way of production.” | However, he said that he believed the steel works behind him had no future. “We’ve worked very hard for a long time to find a sustainable future for the plate base. It’s a very difficult decision and one we fought against but the global macro economic picture means we can’t find a viable way of production.” |
| Updated | Updated |
| at 1.56pm BST | at 1.56pm BST |
| 1.45pm BST | 1.45pm BST |
| 13:45 | 13:45 |
| Local Labour MSP John Pentland has also called on the Scottish government to act, writes Libby Brooks: “The Scottish Government can intervene and support strategic assets when they are threatened, as it has shown several times. It acted when Prestwick was threatened; it acted when Fergusons was threatened; it acted when Grangemouth was threatened; and it can act again, to save our steel industry.” | Local Labour MSP John Pentland has also called on the Scottish government to act, writes Libby Brooks: “The Scottish Government can intervene and support strategic assets when they are threatened, as it has shown several times. It acted when Prestwick was threatened; it acted when Fergusons was threatened; it acted when Grangemouth was threatened; and it can act again, to save our steel industry.” |
| Pentland also said that it was “shocking” that the new Forth crossing project was being built with overseas steel, including steel manufactured in China. | Pentland also said that it was “shocking” that the new Forth crossing project was being built with overseas steel, including steel manufactured in China. |
| 1.44pm BST | 1.44pm BST |
| 13:44 | 13:44 |
| Despite Sajid Javid’s repeated proclamations that prime minister David Cameron will raise the issue of steel dumping with Chinese president Xi Jinping, there seems some doubt as to how strong the protests will be. Our political correstpondent Rowena Mason writes: | Despite Sajid Javid’s repeated proclamations that prime minister David Cameron will raise the issue of steel dumping with Chinese president Xi Jinping, there seems some doubt as to how strong the protests will be. Our political correstpondent Rowena Mason writes: |
| David Cameron’s spokesman will not reveal how strongly he is prepared to object to China’s steel-dumping in his meetings with Xi. She would only say he will “raise” the matter and discuss how the actions of one country can impact on another. There is little sense that he plans to complain forcefully about China’s behaviour. | David Cameron’s spokesman will not reveal how strongly he is prepared to object to China’s steel-dumping in his meetings with Xi. She would only say he will “raise” the matter and discuss how the actions of one country can impact on another. There is little sense that he plans to complain forcefully about China’s behaviour. |
| More in our live blog on the Chinese visit. | More in our live blog on the Chinese visit. |
| 1.28pm BST | 1.28pm BST |
| 13:28 | 13:28 |
| Lib Dem Greg Mulholland: all concentration on Chinese visit is on banking, will issue of steel be raised | Lib Dem Greg Mulholland: all concentration on Chinese visit is on banking, will issue of steel be raised |
| Javid: there will be an announcement of £20bn of business deals with China which I;m sure he will welcome. | Javid: there will be an announcement of £20bn of business deals with China which I;m sure he will welcome. |
| And with that, Parliament turns to other issues. | And with that, Parliament turns to other issues. |
| 1.26pm BST | 1.26pm BST |
| 13:26 | 13:26 |
| Labour Ian Lucas: how big should industry be for strategic reasons, how retain capacity | Labour Ian Lucas: how big should industry be for strategic reasons, how retain capacity |
| Javid: we’ve seen a steady decline in capacity, need to supply more stability so they can plan for future. | Javid: we’ve seen a steady decline in capacity, need to supply more stability so they can plan for future. |
| 1.25pm BST | 1.25pm BST |
| 13:25 | 13:25 |
| Labour Phil Wilson: problems with supply chain, how than they be helped | Labour Phil Wilson: problems with supply chain, how than they be helped |
| Javid: number of good suggestions from summit. Will be working with industries using steel to see how can hard wire requirement for British steel in their products. | Javid: number of good suggestions from summit. Will be working with industries using steel to see how can hard wire requirement for British steel in their products. |
| 1.22pm BST | 1.22pm BST |
| 13:22 | 13:22 |
| Labour Angela Smith: inexcusable minister won’t commit to a long term strategy for industry, for steel | Labour Angela Smith: inexcusable minister won’t commit to a long term strategy for industry, for steel |
| Javid: Steel summit on Friday did discuss strategy. Since then, already set up metal strategy which steel is a major part. | Javid: Steel summit on Friday did discuss strategy. Since then, already set up metal strategy which steel is a major part. |
| 1.21pm BST | 1.21pm BST |
| 13:21 | 13:21 |
| SNP Margaret Ferrier: Must do everything we can for the workers. Welcome action by Scottish government to set up taskforce. But what will UK government do, about dumping, high energy costs? | SNP Margaret Ferrier: Must do everything we can for the workers. Welcome action by Scottish government to set up taskforce. But what will UK government do, about dumping, high energy costs? |
| Javid: We will support Scottish task force. Must do all we can for workers and families. | Javid: We will support Scottish task force. Must do all we can for workers and families. |
| 1.17pm BST | 1.17pm BST |
| 13:17 | 13:17 |
| Labour Tristram Hunt: China needs to know, we are more than just a theme park. What talks is he having, when will he stand up for Britain | Labour Tristram Hunt: China needs to know, we are more than just a theme park. What talks is he having, when will he stand up for Britain |
| Javid: there will be further announcements which will help sustain jobs. Prime minister will discuss whole issue of unfair trade. | Javid: there will be further announcements which will help sustain jobs. Prime minister will discuss whole issue of unfair trade. |
| 1.16pm BST | 1.16pm BST |
| 13:16 | 13:16 |
| Conservative Jeremy Lefroy: Steel is vital national industry. No point in buying cheap steel which will have problems later | Conservative Jeremy Lefroy: Steel is vital national industry. No point in buying cheap steel which will have problems later |
| Javid: right to raise this point. We will be looking very closely at this. | Javid: right to raise this point. We will be looking very closely at this. |