The steel giant Tata is to shortly announce the fate of thousands of UK workers, once their board meeting held in India resolves on the company’s future.
At the beginning of the new year, Tata stated that around a thousand jobs cuts were being considered at UK plants – with 750 due to be lost in South Wales (Port Talbot).
The UK steel industry has been hindered by a number of factors which has damaged competitiveness.
These include primarily of high energy prices, additional cost associated with climate change policies, plus competition from China.
Despite China’s economy remaining sluggish, there have been suggestions that Chinese steel is being “dumped” on world markets at unrealistically low prices, driving competitors out of the market.
Last week, PM David Cameron said the UK government wanted “to be very supportive and very helpful” to the UK steel industry.
However, there are strict EU rules that restrict the level of aid governments can afford to particular industries.
The final decision on the turnaround plan will be made by the 11-member Tata Steel board, led by chairman Cyrus Mistry.
Source BBC Business