Later, he described Tata’s decision to “look at alternative and more sustainable portfolio solutions” as “encouraging news for United Kingdom steel”.
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Tata Steel employs around 15,000 workers in the United Kingdom across plants in Port Talbot, Rotherham, Corby, Shotton and Teesside.
Indian-owned companies employ about 110,000 people in the United Kingdom and grew revenue by £4bn to £26bn a year ago, according to a report by Grant Thornton. The speciality steels division faces a Serious Fraud Office investigation and some of its top staff are suspended, which could complicate a sale.
Mumbai: The UK-based commodity-trading firm Liberty House Group, that had formally submitted the first bid for some of Tata Steel Ltd’s UK assets, said it will continue discussions with Tata Group about potential acquisition even as it is disappointed with the delays. The company began a sales process for the business, and seven potential bidders were shortlisted. She did, however, disagree with Government ministers who believe that Tata Steel UK will thrive outside of Europe.
Meanwhile, Tata Steel said, the management team and the employees of the company are also continuing to improve the underlying performance of our European business which is very encouraging.
“The government will have to acquire additional trade negotiation resources”, Mr Hammond told a committee of MPs.
Tata Steel employs more than 11,000 people across locations.
But he stressed that any agreement, especially about the inclusion of the United Kingdom business in the joint venture, depended on talks with the British and Welsh governments and trade unions, and on resolving issues about pension liabilities.
The company and its advisers then contacted around 200 potential financial and industrial investors around the world to explore their interest in the business.
Taking the above issues into account, the Board of Tata Steel has made a decision to also look at alternative and more sustainable portfolio solutions for the European businesses. As a result it was talking to other steel companies, including ThyssenKrupp, although these were at a “preliminary stage”.
Tata steelworkers face “uncertainty” after it was announced Tata will opt to merge, not sell, their Welsh businesses.
The Government has offered to change the law to cut the scheme’s liabilities, but its proposal has encountered resistance from the Pension Protection Fund.
According to analysts, Tata is less concerned about the speed of the sale due to rising steel prices and a raft of government incentives.
A source close to the situation confirmed that Tata Steel was not only in discussions with ThyssenKrupp, Germany’s largest steel producer.
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To help redraw those trade relationships, the United Kingdom government this week announced plans for a new team of up to 300 specialist staff, including trade negotiators, by the end of the year.
