David Cameron to Hold Emergency Meeting on Tata Steel
Tata Steel’s move to sell its UK business has sent panic signs among the British government.
Tata Steel’s move to sell its UK business has sent panic signs among the British government as the Prime Minister David Cameroon is likely to hold an emergency meeting on Thursday. With thousands of jobs at risk, the British government faces pressure over the economy ahead of EU referendum.
Tata Steel has decided to “explore all options for portfolio restructuring including the potential divestment of Tata Steel UK, in whole or in parts” amid a “deteriorating financial performance of the UK subsidiary in the last 12 months”. Tata’s British business employs about 15,000 workers, including 4,000 at Port Talbot, the country’s biggest steelworks.
Biggest Site Loses 1 Million Pound a Day
Tata’s Port Talbot site alone, which employs 5,500 people, is estimated to be losing 1 million pounds a day.
According to British daily Telegraph, Cameron has decided to cut short his family holiday amid threat of job losses. Business Minister Anna Soubry said the government was prepared to look at all the options to allow time for a buyer to be found to save thousands of jobs.
We are and we will continue to look at, all options and I do mean all options. But what we first want to achieve is from Tata is this period of time to allow a proper sale process.Anna Soubry, Business Minister, United Kingdom
However, when pressed, she said there was a limit to what the government could do.
Tata Steel became Europe’s second largest steel maker after acquiring Corus nine years ago.
(With agency inputs)
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