Tata Steel hoping for a comeback in UK

Tata Steel does not rule out keeping its UK business alive

The Dollar Business

British Prime Minister David Cameron has offered to take 25% of Tata steel's equity stake to support the sale of its UK operations. The Cameron government offered support to India’s Tata Steel, concerned that the move could affect 15,000 jobs. 

Despite announcing plans to pull out its business from the UK and beginning the process of sale of its plants, Tata has still not completely ruled out to keep its UK businesses including Port Talbot steelworks, if conditions improved.

Earlier in March, Tata announced that it is quitting its steel business from UK, leaving the UK government struggling to save an industry which was hit by cheaper Chinese imports, low demand, and high costs.

While Cameron is pushing the firm to sell off its UK business, the Indian firm is still in talks for a rescue deal. The firm may keep its UK business if it can afford and finance a turnaround plan. However, selling the entire business would be its last resort.

While the company is going ahead with the formalities of selling the business, the option to hold the UK business might be considered if the outlook ameliorates.

Tata is currently reviewing its business plans, keeping in mind the high prices, assuming there could be a reduction in Chinese dumping and looking out for ways to bridge the gap.

The Dollar Business Bureau - Apr 27, 2016 12:00 IST
 
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