Future of Tata steel plant in Trostre in doubt over Thyssenkrupp merger

Wales
Wednesday 3 April 2019 at 5:54pm

Credit: PA

The Welsh Government says it is 'cautiously optimistic' about the future of a Tata steel plant in Llanelli, amid reports it could be sold.

Tata may face having to sell the plant in Trostre following concerns they would have too large of a share of the steel packaging market with their planned merger with German firm Thyssenkrupp

There are 650 staff employed at the site.

Speaking in the Senedd, Ken Skates, Minister for Economy and Transport, insisted the Welsh Government would ensure that any sale would secure the long term-future of the plant:

Lee Waters, the AM for Llanelli said the deal with the German firm would only go through if the Trostre plant could be spun off as a ''viable business able to compete with the new merged company''.

Unite Wales represents the majority of the workforce at the Trostre site and has raised concerns about 'grave consequences' for Welsh steel jobs.

Tata and Thyssenkrupp merger

In September 2017, Tata Steel unveiled plans for a merger of their European steel operations Thyssenkrupp to create the second biggest steel firm in Europe.

Talks started in 2016 after Tata decided not to sell its UK steel business.

The deal ended years of uncertainty over the future of plants including Port Talbot and Shotton on Deeside.