Daily Management Review

British Authorities Are Trying to Rescue Steelworkers


04/04/2016


The UK authorities have officially confirmed their intention to intervene in the situation surrounding the sale and the possible closure of a number of British metallurgical enterprises owned by the Indian company Tata Steel. Closure of enterprises could entail job loss for thousands of British. The situation has already caused wide public response in the country, and has led to the fact that the authorities made a promise to provide support up to temporary nationalization of enterprises.



worldsteel via flickr
worldsteel via flickr
Today, First Minister of Wales Karwin Jones said that the British authorities should take decisive action to rescue thousands of workers of the country’s metallurgical enterprises. As we know, the Indian company Tata Steel announced last Tuesday that it intends to leave the UK steel market due to loss-making enterprises. This decision was taken against the backdrop of the global crisis in the industry, as well as increased imports of cheaper Chinese steel. In total, Tata Steel UK plants employ 15 thousand people who may be laid off if the company is closed. 

The Indian company’s statement has caused a wide resonance in the society and the media. On Friday, Minister of State for Business in Britain Sajid Javid promised that the government will use all "ministerial, administrative and diplomatic levers" to help people not to lose their jobs. Today, First Minister of Wales, where Tata Steel has an enterprise with 6 thousand workers confirmed this intention and urged London to take the most drastic measures, not only to save jobs but also to rescue the business itself from the close. "I want to say one simple thing to the residents of Wales and the UK government - these plants should not be closed," - he said at an extraordinary session of the National Assembly of Wales, convened specifically to discuss the situation. Tomorrow, the First Minister of Wales will meet with Prime Minister David Cameron. "The Government should urgently step up to the interim management of these companies until the buyer is not found", - added the politician. 

The right buyer can be found soon - according to unofficial information, a British investment fund Greybull Capital may declare intention to purchase at least part of Tata Steel UK assets in the next few days. Greybull’s representatives consider renaming the company in the British Steel as one of the important points - so it was called 25 years ago, before the merger with Dutch rival Koninklijke Hoogovens in 1999. The merger resulted in creation of Corus Group company, purchased in 2007 by Tata Steel. Sources close to the negotiations, reported that agreement on this issue is yet to be achieved. Under the terms of the agreement, Greybull will pay half the cost of the transaction. The remaining part will be paid by a consortium of British banks and, possibly, the UK government, which will provide this loan.

source: telegraph.co.uk






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