Tata Steel confirms plans to sell UK operations

Tata Steel confirms plans to sell UK operations

Doubts have been cast over thousands of jobs across the country as Tata Steel has confirmed it is selling its UK assets. The company employs hundreds of people in the West Midlands alone. The decision was confirmed following a lengthy board meeting in Mumbai.

 

In January, Tata announced more than 1,000 roles nationwide would be axed and said it couldn’t at the time rule out further job cuts at the major Steelpark distribution centre where most of the company’s 600 Black Country workers are employed.

 

Tata said it has suffered “asset impairment” of more than £2 billion in the last five years.

 

In a statement, Tata said it noted with “deep concern” the deteriorating financial performance of its UK subsidiary in the last year.

 

"While the global steel demand, especially in developed markets like Europe has remained muted following the financial crisis of 2008, trading conditions in the UK and Europe have rapidly deteriorated more recently, due to structural factors including global oversupply of steel, significant increase in third country exports into Europe, high manufacturing costs, continued weakness in domestic market demand in steel and a volatile currency.

 

"These factors are likely to continue into the future and have significantly impacted the long term competitive position of the UK operations in spite of several initiatives undertaken by the management and the workers of the business in recent years."

 

The firm confirms reports that it is still in talks with investment firm Greybull Capital over the sale of its long products division which makes steel for use in construction.

 

Tata said the board unanimously concluded that a plan aimed at saving plants was unaffordable, and that it had been in “deep engagement” with the UK Government in recent months in an attempt to seek support to achieve the best possible outcome for the UK business. Tata said it would “explore all options for portfolio restructuring, including the potential divestment of Tata Steel UK, in whole or in parts.”

 

 

Please rate

Comments 

Name
Email
  Ctrl + Enter

Most Read

The government has cut £1bn from the rail infrastructure budget

The government has cut £1bn from the rail infrastructure budget

Rishi Sunak had previously promised record infrastructure investment as part of the government's "levelling up" agenda. Until now, Network Rail's "enhancement" budget for the five year period from 2019-24 had been set at £10.4bn. But, this week rail minister Chris Heaton-Harris said

Farringdon-first Central London station to complete construction

Farringdon-first Central London station to complete construction

Construction work at Crossrail’s Farringdon station has come to an end.The station becomes the first central London station along the new line to reach the T-12 landmark; this means the station is substantially complete and it is now considered to be 12 weeks away from handover to

TfL allocates extra cash to fix ageing bridges and tunnels

TfL allocates extra cash to fix ageing bridges and tunnels

Of that, TfL’s major asset renewals programme will receive a £135M additional investment to repair key bridges and tunnels. TfL figures show that about 200 out of 500 bridges and other structures that it maintains in the capital have sections in "poor" or "very poor" condition. The

This website uses cookies to enhance your user experience. By continuing to use this site, you consent to our use of these cookies. See our Cookie Policy.