Friday, August 23News For London

Three investors may save Scunthorpe steel plants

Three investors are rumoured to acquire Tata steel plants in Scunthorpe, securing jobs and revitalising the sector, according to the International Business Times.

STOCK PIC/NEWS.... TATA: Tata Steel Scunthorpe Works. Picture: Paul Torrie Buy this photo at www.thisisphotosales.co.uk/scunthorpe Requested by: Contact: Date: 30 May 2011 Postcode: DN15 Keywords: Scunthorpe, Tata, BOS Plant, steel works

Tata Steel at Scunthorpe Credit to Paul Torrie www.thisisphotosales.co.uk/scunthorpe

On Sunday, the Telegraph reported that Tata was neared to a deal to cede the plants. The falling in prices of steel over last few years forced the firm to cut jobs in Scunthorpe.

According to IBTimes, Greybull, which rescued Monarch airlines last year, and Endless, owner of Crown Paints, are in tightened talk to acquire Tata presumably before Christmas or at the beginning of 2016.

Earlier on Monday, speculations arose over the possible involvement of other two firms in the acquisition of Tata. However, the identity stayed mysterious for both.

images
TATA logo. Credit to Wikimedia

“All we know now,” said Tony Gosling, steelworkers at Tata and trade unionist, “is that talks are ongoing and someone may take over soon.”

Mr Gosling went on: “Our priorities do not change: we work for avoid redundancies and secure the employment in Scunthorpe and we will keep working on this way.”

He let know that steelworkers are not planning protests or marches. “People are now concerned over their individual situation,” he argued, “they do not care about the future of the entire industry in the UK, they just want to have their job.”

The situation in Scunthorpe fell down as Tata announced around 1000 job cuts last October. The steel sector is been suffering from the fall of the steel prices and the massive Chinese global competition.

In the 2015 the UK has produced 12m tonnes of steel, the equivalent of the Chinese production in September.

A chart released by the site Trading Economics shows the trend of the price of steel over the period 2008-2015. The pre-crisis level in 2008 was £1,200 per tonne, while nowadays it is around £200.


source: tradingeconomics.com

In the attempt to save the industry, the government set £9m as a care package to support steelworkers. Business secretary Sajid Javid said: “We will do everything we can to help workers and to ensure a level playing field for the industry.”

However, Mr Gosling advised the governments: “If you do not help the steel industry lead the manufacture in the UK, you will not have a manufacture in the future.”