Companies

Tata Steel in talks with the UK, Welsh governments for £500 million bailout package

Hemani Sheth Mumbai | Updated on April 27, 2020 Published on April 27, 2020

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Tata

Steel has approached the United Kingdom and Welsh governments seeking a £500 million bailout to support the industry currently grappling from a major slump as a result of the Covid-19 pandemic, according to media reports.

Tata Steel which is Britain’s biggest steel producer is seeking millions in government support to tackle the impact of the pandemic after its major European customers halted production, Sky News reported.

Tata Steel owns the Port Talbot steelworks in South Wales with employees almost about 8,385 people in the UK including 4,000 at Port Talbot, according to a report by the Guardian.

The steel giant has approached the UK and Welsh ministers seeking a funding package worth £500 million for its operations in the region as per the report.

The company is currently engaged in discussions regarding the same with the Treasury and the Department of Business, Energy and Industrial Strategy.

The issue of the cap limit for a bailout package for steel industries was raised by Aberavon MP Stephen Kinnock on Wednesday where he had urged the government to raise the limit on its Coronavirus Large Business Interruption Loan Scheme from the current cap of £50 million.

“Today in #PMQs I told the Acting PM that the govt must urgently lift the £50m cap on loans to large firms hit by #Covid19. There will be no post-pandemic economic recovery unless we have a strong and healthy Welsh & British steel industry.@TataSteelUK @CommunityUnion,” Kinnock had tweeted.

A Welsh Government spokesman had said that the discussions with Tata Steel are underway regarding the measures needed to support the company in maintaining a sustained, strong steel making presence in the UK and in Wales, the Guardian reported.

A Tata Steel spokesman had said that there had been a sudden decline in the demand for steel in Europe and it is working with the UK and Welsh governments to identify what support is available. BBC reported.

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Published on April 27, 2020
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