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Tata 'expected to sell UK business' | Tata 'expected to sell UK business' |
(35 minutes later) | |
Steel giant Tata is expected to announce the sale of its loss-making UK business, union sources say. | |
The decision puts the jobs of thousands of UK workers under threat. | The decision puts the jobs of thousands of UK workers under threat. |
The Indian company held a board meeting in Mumbai on Tuesday at which the decision was made to sell its UK steel operations. | The Indian company held a board meeting in Mumbai on Tuesday at which the decision was made to sell its UK steel operations. |
Union leaders had travelled to Mumbai in a bid to persuade Tata to invest in the business, but appear to have failed. | Union leaders had travelled to Mumbai in a bid to persuade Tata to invest in the business, but appear to have failed. |
They had hoped Tata would agree to a turnaround plan to keep making steel at Port Talbot and other UK plants including Rotherham, Corby and Shotton. | |
Plaid Cymru leader Leanne Wood tweeted: "If reports from Mumbai are true, it's devastating. @Plaid-Cymru wants Assembly recall. All must work together now to save our steel industry." | |
Labour MP Stephen Kinnock, who is with the union delegation in Mumbai, had urged Tata to "hold its nerve" and criticised the government for not sending a minister to lobby the Tata board. | |
Chinese competition | |
Business Secretary Sajid Javid is travelling to Australia on a business trip. | |
Tata has blamed fierce competition from cheap Chinese imports, regulatory costs and the strong pound for losses at its UK steel business. | |
Other factors affecting the wider UK steel industry include relatively high energy prices and the extra cost of climate change policies, as well as competition from China. | |
There have been allegations that Chinese steel is being "dumped" on world markets at prices that UK plants cannot hope to compete with. | |
At the same time China's economy has remained sluggish, meaning that the demand for steel from its construction sector is now weaker. |