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Steel crisis: Port Talbot boss to launch Tata UK buyout | |
(about 5 hours later) | |
Tata Steel's Port Talbot chief Stuart Wilkie is to launch a management buyout of the company's operations in the UK. | Tata Steel's Port Talbot chief Stuart Wilkie is to launch a management buyout of the company's operations in the UK. |
Tata is selling its entire loss-making UK business and has asked for expressions of interest as part of the sales negotiations process. | Tata is selling its entire loss-making UK business and has asked for expressions of interest as part of the sales negotiations process. |
Mr Wilkie was one of the main people behind a survival plan that was rejected by the Tata board in India and the UK business was put up for sale. | Mr Wilkie was one of the main people behind a survival plan that was rejected by the Tata board in India and the UK business was put up for sale. |
The steel crisis has been driven by falling prices and a global oversupply. | The steel crisis has been driven by falling prices and a global oversupply. |
In the UK, high energy costs and cheaper Chinese imports have exacerbated the issue. | In the UK, high energy costs and cheaper Chinese imports have exacerbated the issue. |
Who might buy Tata in Port Talbot? | Who might buy Tata in Port Talbot? |
What's going wrong with Britain's steel industry? | What's going wrong with Britain's steel industry? |
Tata Steel UK: What are the options? | Tata Steel UK: What are the options? |
Is China to blame for steel woes? | Is China to blame for steel woes? |
The steel union Community said it would welcome "prompt discussions with Stuart Wilkie and any management buyout option". | The steel union Community said it would welcome "prompt discussions with Stuart Wilkie and any management buyout option". |
BBC Wales business correspondent Brian Meechan said that, as with any potential buyer for Tata, the management buyout would require significant financial support from the UK government. | BBC Wales business correspondent Brian Meechan said that, as with any potential buyer for Tata, the management buyout would require significant financial support from the UK government. |
"It's believed though that any management buyout would involve retaining the blast furnaces and making steel from scratch as opposed to the proposal by Liberty to turn it into a recycling facility," he added. | "It's believed though that any management buyout would involve retaining the blast furnaces and making steel from scratch as opposed to the proposal by Liberty to turn it into a recycling facility," he added. |
Tata Steel directly employs 15,000 workers in the UK and supports thousands of others, across plants in Port Talbot, Rotherham, Corby and Shotton. | Tata Steel directly employs 15,000 workers in the UK and supports thousands of others, across plants in Port Talbot, Rotherham, Corby and Shotton. |
The UK operations are losing about £1m a day, and although Tata has not set a deadline for a sale but has stressed it does not want "long period of uncertainty". | |
'Co-investment' | |
Tata has sold its Long Products Europe business at the Scunthorpe plant, safeguarding 4,400 UK jobs, but workers are being asked to accept a pay cut and less generous pension arrangements. | |
Steel company Liberty House, owned by Sanjeev Gupta, has publicly expressed an interest in buying the Port Talbot works. | Steel company Liberty House, owned by Sanjeev Gupta, has publicly expressed an interest in buying the Port Talbot works. |
Mr Gupta has said he is still in the early stages of reviewing a takeover and there was no certainty he would make a bid. | |
Tata Steel said it was not publicly naming or confirming any potentially interested investors or bidders. | |
The government has resisted calls from unions and opposition politicians to nationalise the Port Talbot plant, Britain's biggest steelworks, to safeguard thousands of jobs. | |
However, last week the Business Secretary Sajid Javid raised the prospect of government involvement in the sale, possibly through "co-investing with a buyer on commercial terms". | |
On Monday he joined ministers and trade officials from 30 countries at a meeting in Brussels to discuss the global glut of steel. | |
Although that meeting broke up without agreement, Mr Javid said that China had vowed to address "a problem of overcapacity in their country". |