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Britain mulls conditional support to Tata Steel biz
LONDON: The British taxpayer’s money would be used to help rescue or sell Tata Steel’s UK assets only if the operations had a sustainable future, Welsh secretary
LONDON: The British taxpayer’s money would be used to help rescue or sell Tata Steel’s UK assets only if the operations had a sustainable future, Welsh secretary Alun Cairns has said, amid reports that the company is in talks with Germany’s ThyssenKrupp for a tie-up.
Appearing before the parliamentary Welsh Affairs Committee on Tuesday, Cairns noted the government’s commitment to provide financial support, if needed, on commercial terms, but said the support would come with conditions.
There are some concerns over the future of Tata Steel’s Port Talbot plant in Wales if the tie-up with the German company is formalised. The tie-up would create Europe’s second-largest steel producer after ArcelorMittal.
“We would conduct due-diligence for any sort of investment that the taxpayer would support. The taxpayer money will only be used if there is a sustainable future in steelmaking. It wouldn’t be of anyone’s interests to invest money into a plant that we didn’t believe had a long-term future,” Cairns added.
