Secure future for Port Talbot

Tata Steel and ThyssenKrupp have signed a formal agreement which could secure the future of steel manufacturing at the Port Talbot works.

The move has been welcomed by the government and unions, and hailed by the Business Secretary as an important step for the country’s steel industry.

The development of a Joint Venture between Tata and ThyssenKrupp has been progressing, and the signing of this memorandum of understanding marks the latest stage in building a pan-European steel enterprise. The company will become ThyssenKrupp Tata Steel.

It is hoped the deal will protect the long-term future of steelmaking at Tata’s site in South Wales, the 4,000 jobs based there, and the wider supply chain. The site is home to the Indian conglomerate’s strip steel business.

Business Secretary Greg Clark said: “The Government has been working hard with the unions to secure a sustainable future for Tata Steel in the UK, its 4,000 employees at the Port Talbot site and its supply chain.

“Today’s agreement between Tata Steel and ThyssenKrupp is an important next step in establishing their shared ambition for Port Talbot as a world-class steel manufacturer, with a focus on quality, technology and innovation.”

Roy Rickhuss, General Secretary of Community and chair of the coordinating committee representing the Unite, GMB and Community unions, said: “The steel trade unions cautiously welcome this news and recognise the industrial logic of such a partnership. This would create the second biggest steel business in Europe which could deliver significant benefits for the UK.

“As always, the devil will be in the detail and we are seeking further assurances on jobs, investment and future production across the UK operations. As a priority, we will be pressing Tata to demonstrate their long term commitment to steelmaking in the UK by confirming they will invest in the reline of Port Talbot’s Blast Furnace No.5.”

Tata Steel has been working closely with the government and unions to secure a sustainable steel industry within the UK. Looking forward, it is hoped that the joint venture would also contribute to the UK vehicle manufacturers supply chain and develop innovations.

 

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