Tata Steel: Investment announcement due next week

Port Talbot in Wales

ITV News has learned that Tata Steel UK and the Welsh Government are due to announce shortly a joint investment in the troubled steel works at Port Talbot.

The financial package, which does not guarantee the future of the site, will nonetheless be seen as a “positive signal” according to sources close to the deal.

In what’s believed to be a multi-million pound package, the site’s existing power plant will be upgraded, and the annealing line, which makes product for the automotive industry, will be similarly improved.

A formal announcement could be made as soon as next week but not until the Tata group have announced their first quarter results on Monday.

In recent months Tata UK and its works in South Wales have returned to profit, thanks in part to the rising price of steel, and – in Port Talbot – a turnaround plan that’s helped to cut costs and improve efficiency.

It is a fragile improvement in circumstances for thousands of steel workers, but questions remain about the company’s pension liabilities and its ability to compete with China.

An uncertain future seems certain for now but investment will help settle nerves.

[Source:- itv]