mill and related downstream assets. It said “SSAB has participated in several different discussions concerning consolidations in the European steel industry. The discussions with Tata are on-going but no decisions have been made. There can be no certainty that any transaction will materialize, nor as to the terms of any such potential transaction. Further announcement will be made in due course.”
Tata Steel while announcing Q2 results said that “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.”
The deal excludes Tata’s UK steel plants which it will retain meaning that Port Talbot will now be the only steel making plant left within Tata’s European business.
Stephen Kinnock, MP for Port Talbot's Aberavon constituency, said it was time for a partnership between Tata Steel and the government. He told BBC Radio Wales that Tata's decision puts the spotlight very firmly on the UK government that has to now step up and provide support to the British steel industry. He added "It is about the UK government now stepping up to the plate and saying 'okay, this is a British business, we need it for decarbonisation, for climate change objectives, we need it to build sovereign capacity after Brexit'."
However, Welsh Government Ministers were told by Tata Steel that the company is determined to find a sustainable future' for its UK operations and safeguard the 8,000 workforce' which are mostly in Wales.