Support urged as Tata steel looks to separate UK and Europe operations

The company says it is looking at measures to safeguard the long-term future of Tata Steel UK. Credit: PA Images

There are calls for reassurance over the long-term future of steelmaking in Wales after Tata Steel announced it is in talks to separate its UK and European operations.

Tata Steel UK and Tata Steel Netherlands have been integrated since British Steel and Koninklijke Hoogovens merged to form Corus in 1999.

But Tata Steel Group has started negotiations to sell Tata Steel Netherlands to the Swedish steel company SSAB, although no agreement has been reached.

In a statement, Tata said: "The company has initiated the process to separate Tata Steel Netherlands and Tata Steel UK and will pursue separate strategic paths for the Netherlands and UK business in the future.

"Tata Steel continues its dialogue with the UK Government on potential measures to safeguard the long-term future of Tata Steel UK and is also reviewing all options to make the business self-sustaining without the need for any funding support from Tata Steel India in the future."

Tata employs thousands of people in Wales, and its Port Talbot site is the biggest in the UK and one of the largest in Europe.

Port Talbot is the largest steel plant in the UK. Credit: PA Images

Welsh Economy Minister Ken Skates said: “Today’s announcement will be extremely worrying for Tata Steel workers across Wales, their families, local communities and the supply chain, but we know the steel industry has a future in Wales and the UK.

“The First Minister and I spoke with Tata today and they said they are determined to find a sustainable future for operations in the UK and to safeguard the 8,000 workforce, most of which are in Wales.

“The First Minister is seeking urgent talks with the Prime Minister and I will speak to the Secretary of State for BEIS and the Secretary of State for Wales to call for urgent action. The industry is now waiting for the UK Government to take immediate action to safeguard the sector and protect jobs. Every day they are not at the table is another day lost for workers and for an industry of strategic importance.

"The Welsh Government has offered significant support to Tata over the years to make sure steel continues to have a future in Wales. We will do all we can to protect the future of the industry but we need the UK Government to act decisively and now do the same. It’s imperative that we retain an indigenous steel sector to meet the challenges of not being part of the EU.”

A UK Government spokesperson said: “This is a commercial decision for Tata Steel. We will continue to work with Tata Steel and other stakeholders as the company shapes its business strategy for the future.  

“The UK government remains committed to supporting a sustainable, long-term future for steelmaking in the UK.” 

Economy minister Ken Skates called the announcement 'extremely worrying' but offered reassurance to workers. Credit: Welsh Government

Community is the largest and leading trade union across the UK steel industry. Responding to the announcement, general secretary Roy Rickhuss said: "Since 2016 Tata have looked at various strategic options for Tata Steel Europe. It appears the sale of Tata Steel Netherlands to SSAB is now their intended way forward.

"We should be clear this announcement marks only the start of a process and a sale is far from inevitable. Through the consultation process, we will look in detail at the proposals and fully assess all the implications for the UK businesses.

"We will challenge Tata at every turn and rest assured we will protect our members’ interests. Should we conclude the separation of Tata Steel UK would place our members’ livelihoods at risk then we will vigorously oppose the break-up of the company.

"Tata must now reaffirm their commitment to the UK and bring forward investment that demonstrates they will live up to their social responsibilities to the workforce and steel communities."

Stephen Kinnock, the MP for Aberavon - where Port Talbot steel works is based - said the importance of steel manufacturing in the UK "has never been greater".

He said the potential separation of the UK and European Tata operations would mean the Port Talbot plant could be "even more focused and effective".

Mr Kinnock added: "Today’s announcement puts the spotlight firmly on Tata Steel and on the UK Government.

"Tata must now honour its commitment to a sustainable long-term future for its UK operations, with Port Talbot at its heart, and I will be working closely with Community Union and the other steel unions to hold the company’s feet to the fire."