According to the British media report, Tata Steel’s UK losses increased to GBP 371 million in 2019 and Tata Steel has warned that the steelworks must become self-sustaining or face closure. Tata Sons group chairman Natarajan Chandrasekaran told, “I need to get to a situation where at least the plant [Port Talbot] is self-sustaining. Whether it is in the Netherlands or here, we can’t have a situation where India keeps funding the losses just to keep it going. If you’re not going to be performing, who is going to be interested?”.
He said that the company would not continue subsidising a loss-making operation simply to ensure its survival.
A spokesman for Tata Steel’s European operations said, “What our chairman said in the interview has already been communicated to colleagues through our transformation programme. That programme is about building a stronger and more sustainable European steel business by improving profitability so that we can pay for investments necessary to secure our long-term future. The plans include productivity improvements, reduced bureaucracy and increased sales of higher-value steels, as well as employment cost savings”.
Tata has owned the steelworks in Port Talbot since paying GBP 6.2 billion to take over the Anglo-Dutch steelmaker Corus in 2007. Port Talbot, in South Wales, produces nearly 5 million tonnes of steel slab per year and employs about 4,000 workers with many more in its supply chain.
The steelmaker continues to be hit by weak demand and strong overseas competition. The UK Tata Steel Europe employs around 8,000 of which 5,000 are in Wales, where the majority – around 4,000 – work at its primary steelmaking plant in Port Talbot.
