Tata Steel is to sell its entire UK business, including Port Talbot steelworks, putting thousands of jobs at risk.
The news was announced following a board meeting in Mumbai on Tuesday March 29, when Tata Steel said it could not give open ended commitment to keep the UK plants open.
It’s Port Talbot site, reported to be losing £1m a day, currently employs over 5,000 of Tata UK’s 15,000 strong work force.
According to a IPPR think tank, if a buyer is not found for Tata Steel’s UK business over 40,000 jobs could be lost.
The Welsh Assembly was recalled to parliament, as well as Labour leader Jeremey Corbyn to discuss the crisis. With UK business secretary Sajid Javid returning from Australia to lead the response.
It is understood that the government could intervene with Anna Soubry, the UK Business Minister, telling the BBC that it is considering all options for the steel plant and urged the company to take enough time to find a suitable buyer.
David Cameron responded to the crisis but has stated that ‘nationalisation is not the right answer’ for the Port Talbot plant. His view was supported by Mr Javid, who also explained that the UK steel industry was vital to its country.
It is a subject which is once again dividing the UK parliament with opposition leader Jeremy Corbyn reportedly believing that nationalising the industry could be a solution.
The decision also effects workers at its other UK plants, including Rotherham, Corby and Shotton. Two plants in Scotland have already struck a deal to be sold, while Tata’s Scunthorpe plant is in the process of being bought.
