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Tata Steel plans to sell UK plants | Tata Steel plans to sell UK plants |
(about 3 hours later) | |
India's Tata Steel plans to sell its loss-making UK business, putting the jobs of thousands of workers at risk. | |
Its European holding company has been told to "explore all options for restructuring", including the partial or entire sale of its UK operations. | |
Union leaders travelled to Mumbai in a bid to persuade Tata to keep making steel at plants including Port Talbot. | |
The UK and Welsh governments said they are working "tirelessly" to ensure the future of the British steel industry. | |
Meanwhile, Plaid Cymru leader Leanne Wood said that her party wanted the Welsh Assembly to be recalled to discuss the crisis - a call that was echoed by Welsh Conservatives leader Andrew Davies. | |
'Global oversupply' | |
Tata's restructuring decision, which was announced after a board meeting in Mumbai on Tuesday, will also affect workers its other UK plants including Rotherham, Corby and Shotton. | |
Tata said trading conditions had "rapidly deteriorated" in the UK and Europe due to a global oversupply of steel, imports into Europe, high costs and currency volatility. | |
"These factors are likely to continue into the future and have significantly impacted the long-term competitive position of the UK operation," it said. | |
In a joint statement, the UK and Welsh governments said: "We remain committed to working with Tata and the unions on a long-term sustainable future for British steel-making. | |
"Both the UK and Welsh governments are working tirelessly to look at all viable options to keep a strong British steel industry at the heart of our manufacturing base." | |
Labour MP Stephen Kinnock, whose Aberavon constituency includes the Port Talbot plant, accompanied the union delegation to Mumbai. | |
He said: "The fact that Tata Steel in committed to continuing and to moving forward with the plant whilst looking for a buyer... is absolutely critical. | |
"There were various scenarios before we came out here... We are now a little bit clearer on which scenario we now have and it isn't certainly the worst case scenario." | |
Labour leader Jeremy Corbyn said: "Ministers must act now to protect the steel industry and the core of manufacturing in Britain." | Labour leader Jeremy Corbyn said: "Ministers must act now to protect the steel industry and the core of manufacturing in Britain." |
'Dark day' | |
Unions expressed concern at the announcement and urged Tata and politicians to work at finding a buyer for the business. | |
Roy Rickhuss, general secretary of the Community union, said the "worst fear" that Tata would announce plant closures had not been realised. | |
It was, he added, "vitally important" the company acted as a "responsible seller of its businesses and provides sufficient time to find new ownership". | |
He said: "There is also a crucial role for both the Welsh and UK governments to do all they can to ensure a future for Tata's remaining UK steel businesses and to provide every assistance to secure a buyer that will continue steel making." | |
Len McCluskey, general secretary of the Unite union described Tata's decision as a "very dark day for the proud communities and a proud industry which is now on the verge of extinction in this country". | |
Dave Hulse, national officer of the GMB union, said the news was "absolutely devastating", adding: "Tata has let the whole of the UK steel industry down." | Dave Hulse, national officer of the GMB union, said the news was "absolutely devastating", adding: "Tata has let the whole of the UK steel industry down." |
Chinese competition | Chinese competition |
Tata Steel has been operating in the UK since 2007 when it bought Anglo-Dutch steelmaker Corus. | |
In January the company announced more than 1,000 UK job cuts, including 750 in Port Talbot, where it employs 4,000 staff and a further 3,000 contractors and temporary workers. | |
And last October Tata Steel said nearly 1,200 jobs would go at plants in Scunthorpe and Lanarkshire. | |
There have been allegations that Chinese steel is being "dumped" on world markets at prices that UK plants cannot hope to compete with. | 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. | At the same time China's economy has remained sluggish, meaning that the demand for steel from its construction sector is now weaker. |
Other factors affecting the wider UK steel industry include relatively high energy prices and the extra cost of climate change policies. |