UK Government May Co-invest to Save Tata Steel's Welsh Unit

UK may co- invest with a steel buyer to help save thousands of jobs at Tata Steel's loss-making Port Talbot steelworks.
A Tata Steel logo is seen on a sign outide the entrance to the Brinsworth Strip Mill, operated by Tata Steel, in Rotherham, northern England on March 30, 2016 | AFP
A Tata Steel logo is seen on a sign outide the entrance to the Brinsworth Strip Mill, operated by Tata Steel, in Rotherham, northern England on March 30, 2016 | AFP

LONDON: The UK government may decide to co- invest with a steel buyer to help save thousands of jobs at Tata Steel's loss-making Port Talbot steelworks in Wales, UK business secretary Sajid Javid said today.

"I've been in contact with potential buyers, making clear that the government stands ready to help. This includes looking at the possibility of co-investing with a buyer on commercial terms," Javid told the House of Commons.

His statement is the first firm indication that the UK government may resort to partial nationalisation of Tata Steel's loss-making units to save the nearly 4,000 jobs at Port Talbot, Britain's biggest steelworks, in which Indian- origin businessman Sanjeev Gupta has shown interest.

"Both the governments (British and Welsh) are very helpful and cooperative. Then it is a question of analysis, which we will have to undertake in-depth once we engage with Tata. That is when the model and concept we have clearly outlined and plan to pursue will be tested with real numbers," Gupta had told PTI over the weekend.

Javid's statement came as Tata Steel announced the sale of its Long Products Division to Greybull Capital earlier today.

The Long Products Europe business employs 4,800 people -– 4,400 in the UK and 400 in France.

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