British steel industry suffers blow after Tata decides to sell plants
LONDON (AFP) – Indian steel giant Tata Steel plans to sell its British assets in a move that puts thousands of jobs in doubt and strikes a deep blow to Britain's crisis-hit steel industry.
Tata said in a statement that trading conditions had ''rapidly deteriorated'' in Britain 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 operations,'' the statement read. The company would ''explore all options for portfolio restructuring including the potential divestment of Tata Steel UK, in whole or in parts,'' it said.
Union representatives had travelled to Mumbai as a company board meeting was held to try to convince Tata to invest in the plants, which employ thousands in England and Wales.
Politician Leanne Wood, leader of Welsh party Plaid Cymru, described the news as ''devastating'' and called for the Welsh regional assembly to be recalled from its Easter break to respond to the crisis.
Tata had previously announced a series of job cuts at its Port Talbot site in Wales, where it employs 4,000 people, with another 3,000 employed as contractors and temporary workers.
A joint statement from the British government and the Welsh regional government said they would work with unions to maintain the steel industry.
''This is a difficult time for workers in Port Talbot and across the UK,'' the statement read.
''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.''
Unions have accused China of killing off British industry by ''dumping'' steel on the market at prices that cannot be competed with. Tata said it had poured money into the UK businesses and suffered '' asset impairment'' of over £2 billion ($2.8 billion, 2.5 billion euros) in the last five years.