Tata Steel Crisis – Updates

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Owners of Shotton steel Tata confirm they are to offload the UK operation, threatening thousands of jobs.

Tata Steel said on March 30 that it would explore all options for restructuring its European operations, including the possible sale of its UK operation.

The news has come as a shock to workers at Tata Shotton which is the companies only profitable UK business.

There have been calls in the UK to nationalise the steel industry in an effort to save it.

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Don’t let history repeat itself – save our steel – Plaid Cymru AM speaks up for Shotton steelworkers.

Plaid Cymru’s North Wales AM Llyr Gruffydd has stressed the importance of Shotton to any planned rescue package for Tata Steel in Wales.

Speaking this afternoon in the Assembly, where AMs have been recalled for a statement on the steel crisis, he said:

“It was 36 yrs ago – 31 March 1980 – that Shotton experienced the largest single redundancy in a day in Western Europe. 6,500 people lost their jobs that day and its impact is still felt on Deeside today.

“The region was hit again 10 years later in 1990 with the closure of Brymbo Steelworks near Wrexham with 1,100 job losses. That is another devasted community that has never recovered from losing so many skilled, well-paid jobs.

“Despite the huge loss of jobs, Shotton today is a profit making and viable business. It’s important amid all the doom and gloom about Tata Steel losing money to remember this.”

He explained that the Shotton site is in two parts:
– Colours registered an operating profit of more than £13 million this tax year.
– Panels and Profiles profit this year is more than £18 million.
Both are supplied with steel from Port Talbot so this is an integrated Welsh steel company.

Mr Gruffydd added:

“I’ve seen for myself during a visit last year that this is an innovative and modern plant making coated steel for a variety of uses, such as all the Ikea store frontages. It’s also provided the steel for both the Millenium Stadium and the City of Cardiff stadium. These are iconic buildings that are truly Made in Wales.

“The case for keeping Port Talbot’s blast furnace open is therefore important for other communities in Wales too.”

Mr Gruffydd also called for a commitment from the Welsh Government to invest in Shotton if needs be:

“At present, steel is supplied by rail. If this changes in the future, steel could be brought by boat up the Dee. This would need new investment for a jetty. Would the Welsh Government provide funding in this situation to safeguard Shotton’s steel supply?

“Shotton isn’t just about the 800 workers directly employed by Tata. That figure could well be doubled or trebled by those employed indirectly. Gwynedd Shipping Line have an operations centre on site with hundreds of wagons going in and out every month employing many drivers. There are also cleaners, laundry contracts, scaffolders, agency workers etc, all of whom depend on Shotton for their livelihood but would not be entitled to any form of redundancy package.

“All the work done to overcome the devastating economic blows Deeside and Wrexham have suffered in previous years due to steel closures would be undone if this Government and the UK Government do nothing in this steel crisis. We know what happens when steelworks close – it ruins communities. Don’t let history repeat itself.”

Plaid Cymru has called for a package to save the steel industry in Wales that could involve Welsh and UK Government intervention to ensure 6,000 jobs were saved after Tata announced it wanted to sell the business. They have pointed to the role of the SNP-led Scottish Government in securing the future of the Scottish steel industry and contrasted it with the inactivity of the Labour-led government in Cardiff.[/text_output][gap size=”30px” id=”” class=”” style=””][line][gap size=”30px” id=”” class=”” style=””][/vc_column][/vc_row][vc_row inner_container=”true” no_margin=”true” padding_top=”0px” padding_bottom=”20px” border=”none” bg_color=”#ffffff” bg_video=”” class=”” style=””][vc_column fade_animation_offset=”45px” width=”1/6″][text_output][/text_output][/vc_column][vc_column fade_animation_offset=”45px” width=”5/6″][text_output]

Recalled Assembly due to sit today over UK steel crisis.

Assembly members and the First Minister Carwyn Jones are set to meet in the Welsh Assembly at 1.30pm today to discuss the steel crisis in Wales.

The Assembly will sit after Presiding Officer Rosemary Butler agreed to a request from the First Minister to recall the Assembly to consider the ongoing situation in the Welsh steel industry.

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Shotton Steel Works opened 1896 so 120yrs on its still modern,progressive,viable and delivering significant profit pic.twitter.com/ojiIzpAIqe

— anthony simpson (@lostvirgochild) April 3, 2016

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Fighting for the future of Shotton steelworks writes Hannah Blythyn, Welsh Labour Assembly candidate for Delyn;

On 31st March 1980 more than 6,500 steel workers in Shotton were made redundant by the then Tory Government, led by Margaret Thatcher. 36 years to the day I organised a meeting at Shotton Steelworks with Labour politicians from across North East Wales – joining with union leaders in demanding that the UK Government acts immediately to help safeguard the future of what is now a jewel in the crown of steelmaking in the UK and crucial to the North East Wales manufacturing economy

Together we met with Unite and Community Union representatives to discuss the future of the plant, which still employs 800 people and operates at a significant profit, providing high quality employment for people from across our communities.

Shotton Steelworks opened in 1896 and its current configuration contains two solid, well performing businesses with all parts of the plant at Shotton being profitable. This plant has risen from the ashes of the 1980s and I know first hand that workers at Shotton are committed and proud to to work at Shotton Steel – striving to ensure world and market leading products for a loyal customer base.

We cannot let the inaction of the Conservative Government of today ruin what the workforce in Shotton has built. I have and always will support our workforce and going forward will work with partners and politicians to fight for the future of this viable and profitable plant right on our doorstep that means so much to our region.

My politics and values have been shaped by growing up here during the 1980s – I’ll never forget the devastating damage the then Conservative Government reaped on our workplaces, our communities and our people. We can’t and won’t let that happen again. Our steel workers and their families deserve more than warm words from the UK Government – they need action. I am proud of our industrial past and will always fight for our manufacturing future.[/text_output][gap size=”30px” id=”” class=”” style=””][line][gap size=”30px” id=”” class=”” style=””][/vc_column][/vc_row][vc_row inner_container=”true” no_margin=”true” padding_top=”0px” padding_bottom=”20px” border=”none” bg_color=”#ffffff” bg_video=”” class=”” style=””][vc_column fade_animation_offset=”45px” width=”1/6″][gap size=”12px” id=”” class=”” style=””][text_output][/text_output][/vc_column][vc_column fade_animation_offset=”45px” width=”5/6″][text_output]

Steel tycoon starts talks over Port Talbot rescue reports the Daily Telegraph.

Steel tycoon Sanjeev Gupta has started talks with the Government over a bold plan to rescue the Port Talbot steelworks and safeguard thousands of jobs.

The founder of commodities firm Liberty House will tomorrow night fly into the UK ready to meet Government officials and Tata to gauge their support for a proposal to keep Britain’s largest steel plant open.

The entrepreneur, who has saved a number of British steel plants and mills from the industry’s unfolding crisis, has submitted preliminary proposals to the Government to replace Port Talbot’s traditional blast furnaces with modern electric arc furnaces, used to produce raw steel by melting scrap.

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Anthony Simpson  Union Chair at Shotton

‘Shotton Steel Works opened 1896 – in its present configuration it contains two very solid performing businesses. All elements of Shotton Plant are profitable and return that healthy profit to Tata Steel Europe.

Shotton Employees are committed to and proud to work at Shotton Steel Works. We have always strived to provide word leading, quality differentiated market leading world class products for our loyal customer base.

We as a plant are left in an uncertain situation with no idea what the future holds for us, the implications of this announcement on our profitable and viable plant is unclear and we would welcome clarity on the situation from The business and clear defined support and not just words from both the UK and Welsh Governments.

It is clear the announcement will mean change but that is nothing new at Shotton, we have repeatedly managed change in our history, we embrace change, we are proud of that and have continued to push forwards to succeed to the world class plant we are today.

Shotton is a Jewel in the total company portfolio and so are its employees this needs to be recognised – the workers at Shotton deserve that.[/text_output][gap size=”30px” id=”” class=”” style=””][line][gap size=”30px” id=”” class=”” style=””][/vc_column][/vc_row][vc_row inner_container=”true” no_margin=”true” padding_top=”0px” padding_bottom=”20px” border=”none” bg_color=”#ffffff” bg_video=”” class=”” style=””][vc_column fade_animation_offset=”45px” width=”1/6″][text_output][/text_output][/vc_column][vc_column fade_animation_offset=”45px” width=”5/6″][text_output]

David Cameron raises concerns with Xi Jinping.

David Cameron has raised his concerns about the steel crisis with Chinese President Xi Jinping, Number 10 says.

During a dinner in Washington on Thursday, Mr Cameron said they needed to work together to tackle over-capacity, his spokeswoman said.

China “dumping” cheap steel on overseas markets is being partly blamed for the problems facing the UK steel industry.

It comes as China is to impose import tariffs of up to 46% on some EU steel, including a type made in south Wales.

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Cracking letter from the wife of a steelworker in today’s Times. ‘Steel is not a declining industry’ pic.twitter.com/gNfJlrE4b0

— Joe Coyne (@JoeCoyne_) April 1, 2016

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More warm words but no action” – Labour writes to Sajid Javid

Angela Eagle MP, Labour’s Shadow First Secretary of State and Shadow Business Secretary, has today written to Sajid Javid asking him to:

[icon type=”caret-right”] Urgently ‘pick up the phone to Beijing’ to discuss reports of proposed Chinese tariffs on British steel

[icon type=”caret-right”] Set out how many weeks there are to save the British steel industry

[icon type=”caret-right”] Set out what interventions the Government has made to help British steelworkers

[icon type=”caret-right”] Clarify a range of other issues surrounding the Government’s handling of the steel crisis

Angela Eagle said: 

“Over twenty four hours have now passed since the Prime Minister convened the so-called emergency meeting, but so far we have heard more warm words from the Government but no concrete action.

“Despite all the talk there have been no new proposals to safeguard our steelmaking capacity; no evidence of action to reassure workers; and no proof that the Government is going all out to find a potential buyer.

“For the sake of steel workers and their families who are worried sick and for the future of our economy, it’s time the Government got a grip of the situation and came up with concrete steps to help save our steel industry.”

Text of the letter sent from Angela Eagle to Sajid Javid today:

Dear Sajid,

Over twenty four hours have now passed since the Prime Minister convened the so-called emergency meeting at Number 10. So far we have heard more warm words from the Government but no concrete action.

You will be aware of the grave seriousness of the situation, given that Tata Steel have been unable to give a categorical commitment to keeping their operations open while buyers are found. This means that the future of steel making in the UK and the high-skilled, well-paid jobs of those directly employed by Tata and many more in the supply chain are hanging by the thinnest of threads.

Against that backdrop I am deeply concerned that despite all the talk from the Prime Minister there have been no new proposals to safeguard our steelmaking capacity; no evidence of action to reassure workers; and no proof that the Government is going all out to find a potential buyer.

The danger signs have been flashing red for some time, yet these have been largely ignored by a Government whose neglect of the steel industry is putting our manufacturing base at risk. As you well know, foundation industries like steel are vital to our manufacturing, construction and defence industries.

That is why Labour has dragged the Government kicking and screaming to take action to help the steel industry, for example by demanding action on vital reform to trade defence instruments, business rates and procurement.

The indifference shown by the Government suggests that it seems content to manage decline, rather than take the tough and necessary action needed to defend jobs and put the industry on a sustainable footing for the future.

I therefore have a number of specific questions which I hope you will be able to answer fully and in a timely fashion.

Tata Steel:

·                  When was your office first made aware of the Tata Steel board meeting in Mumbai; and when and why did you not see fit to go to Mumbai to lobby the board?

·                  What communication have you personally had with the board of Tata Steel in the weeks leading up to their meeting in Mumbai and what communication have you had with them subsequent to the decision they made on Tuesday 29 April?

·                  After the so-called emergency meeting in Number 10, the Prime Minister spoke of the interventions he had made. Can you inform me what these interventions consisted of?

·                  It is still unclear how long Tata Steel plan to keep Port Talbot steelworks open for while a buyer is found. Can you confirm how long is left to save the plant?

·                  Tata Steel are believed to have appointed PwC to advise it on the restructuring of its UK business. Can you shed any light on what options are being looked at by PwC, and what involvement the Government is having in these discussions?

China and Trade Defence Reform:

·         I have repeatedly called on the Government to support tougher EU action to ensure a level playing field and prevent the dumping of Chinese steel, specifically to support scrapping the Lesser Duty Rule which prevents higher tariffs being imposed. So far the Government have blocked this at EU level. Given that the future of Britain’s steel industry is now under threat, do you agree with me that the UK should now change its position on the Lesser Duty Rule?

·         Referring to the Lesser Duty Rule earlier today, Charles de Lusignan, a spokesman for Eurofer which represents steel production in the European Union, said: “The fact is that the UK has been blocking this. They are not the only member state, but they are certainly the ringleader in blocking the lifting of the Lesser Duty Rule.” Can you explain why the UK has seen fit to block this vital reform which could have prevented the current crisis in the steel industry?

·         If the Government and other EU members states now accept that steel making in the Europe is in ‘emergency measures’, then it would be possible to apply ‘safeguards’ to effectively halt the flood of imports into the EU. Do you believe that this would be appropriate?

·         Granting market economy status to China in the absence of important safeguards would significantly diminish the capacity of the EU to guard against Chinese dumping which has the potential to destroy the UK steel industry. And at the same time China are saddling British exports of steel with exorbitant tariffs. Given recent developments in the UK steel industry, do you agree that China should not be granted Market Economy Status at any cost and will you commit to picking up the phone to Beijing as a matter of urgency to discuss these proposals?

Business Rates:

·         The recent Budget contained nothing in it to help the UK steel sector, and at the eleventh hour the Government dropped plans to reform business rates for the steel industry. I would be grateful if you could explain why Government decided against business rate reform for manufacturing industries such as steel, and when this decision was taken?

·         UK business rates are up to 10 times higher than those of many of our European competitors. Given recent developments, will you commit to looking again at reforming business rates for the steel industry?

Procurement:

·         Last October the Government published new guidelines for departments to use for major projects when buying steel, with the aim of ensuring that contracts are more likely to be awarded to UK steel firms. I of course welcome this change, although remain concerned about its limited scope. Can you confirm which, if any, public contracts have been awarded to UK firms under the new guidelines?

·         The recent BIS Select Committee report on the steel industry concluded that the Government needs to do more to “actively champion the use of domestic steel in large public infrastructure projects.” Can you confirm what action the Government is taking to actively champion the use of UK steel for large-scale infrastructure projects?

Thank you for your attention to this matter, and I look forward to hearing from you urgently.[/text_output][gap size=”30px” id=”” class=”” style=””][line][gap size=”30px” id=”” class=”” style=””][/vc_column][/vc_row][vc_row inner_container=”true” no_margin=”true” padding_top=”0px” padding_bottom=”20px” border=”none” bg_color=”#ffffff” bg_video=”” class=”” style=””][vc_column fade_animation_offset=”45px” width=”1/6″][text_output][/text_output][/vc_column][vc_column fade_animation_offset=”45px” width=”5/6″][text_output]

62% of British people support nationalising Port Talbot Steelworks according to a YouGov poll

A large majority of British people – including Conservative voters – support nationalising the Tata Steel plant in South Wales

Business Secretary Sajid Javid travels to Port Talbot Steelworks today to try to assure workers the government is “on their side” in the crisis over Tata Steel’s decision to sell its UK assets, which include the South Wales plant. The plant, which employs 4,100 people is said to be losing £1 million a day after a rise in imports of cheap Chinese steel contributed to losses in the business. Critics have blamed ministers for opposing a European Commission proposal to allow higher tariffs on cheap imported steal, however they say the tariffs would damage other sectors like the car industry.

David Cameron and Sajid Javid have said nationalisation is “not the answer”, but new YouGov research reveals fully 62% of British people support nationalising the steel plant in South Wales. Only 17% oppose and 21% are unsure.

2918 UK adults were questioned on 31 Mar 2016.
Results are weighted to be representative of the GB population.

YouGov

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Reports from Germany say Tata is planning to take a stake in Thyssenkrupp AG the German based European steel company.

German paper Rheinische Post reported on Friday, sending shares in the German steelmaker higher.

The paper said talks were at an advanced stage, citing government sources in Berlin.

Thyssenkrupp’s shares were up as much as 7.7%, in early morning trading.[/text_output][gap size=”30px” id=”” class=”” style=””][line][gap size=”30px” id=”” class=”” style=””][/vc_column][/vc_row][vc_row inner_container=”true” no_margin=”true” padding_top=”0px” padding_bottom=”20px” border=”none” bg_color=”#ffffff” bg_video=”” class=”” style=””][vc_column fade_animation_offset=”45px” width=”1/6″][text_output][/text_output][/vc_column][vc_column fade_animation_offset=”45px” width=”5/6″][text_output]BRITISH STEEL TRUSTEE STATEMENT ON COMPANY RESTRUCTURING ANNOUNCEMENT

The Trustee of the British Steel Pension Scheme is aware of the recent announcement from the Board of Tata Steel Limited that it wishes to explore all options for the restructuring of its European operations, including the potential divestment of all or part of Tata Steel UK.

The Trustee expects Tata Steel to discuss with it the implications for the BSPS of any sale or restructuring of the UK businesses. The Trustee, and its advisers, will continue to monitor the position closely to assess what impact this announcement and any further developments might have on the Scheme and will communicate further with members if and when it is appropriate to do so.

The Pensions Regulator is being kept informed of developments.

The Scheme continues to operate as normal paying benefits as they fall due.[/text_output][gap size=”30px” id=”” class=”” style=””][line][gap size=”30px” id=”” class=”” style=””][/vc_column][/vc_row][vc_row inner_container=”true” no_margin=”true” padding_top=”0px” padding_bottom=”20px” border=”none” bg_color=”#ffffff” bg_video=”” class=”” style=””][vc_column fade_animation_offset=”45px” width=”1/6″][text_output][/text_output][/vc_column][vc_column fade_animation_offset=”45px” width=”5/6″][text_output]ON THE 36th anniversary of the day 6,500 people lost their jobs at Shotton steel, community leaders have met with workers and union bosses to discuss how to protect the current workforce says The Leader

‘A Labour petition calling for Parliament to be recalled had passed the 100,000 mark in just one day, with a new signature every second.
Mr Cameron said the government was “doing everything it can” to resolve the steel crisis, but nationalisation was not the right answer.’ write Jamie Nield-Siddall and David Humphrey.

Full Article here[/text_output][gap size=”30px” id=”” class=”” style=””][line][gap size=”30px” id=”” class=”” style=””][/vc_column][/vc_row][vc_row inner_container=”true” no_margin=”true” padding_top=”0px” padding_bottom=”20px” border=”none” bg_color=”#ffffff” bg_video=”” class=”” style=””][vc_column fade_animation_offset=”45px” width=”1/6″][text_output][/text_output][/vc_column][vc_column fade_animation_offset=”45px” width=”5/6″][text_output]Upbeat’ Tata crisis talks herald fresh hope for Shotton steel plant reports the Daily Post:

Confidence grows in ‘profitable’ factory’s future after management team, trade union leaders and local politicians met in Deeside earlier today writes Gary Porter.

‘Bosses at Tata Steel’s Shotton plant remain “upbeat” despite the uncertainty surrounding the future of the site as a result of the company’s plans to sell its UK assets.

Talks between the management team, trade union leaders and local politicians were held at the Deeside base this morning over the steel industry crisis and the potential impact on the 800-strong workforce.’

Full Article here[/text_output][gap size=”30px” id=”” class=”” style=””][line][gap size=”30px” id=”” class=”” style=””][/vc_column][/vc_row][vc_row inner_container=”true” no_margin=”true” padding_top=”0px” padding_bottom=”20px” border=”none” bg_color=”#ffffff” bg_video=”” class=”” style=””][vc_column fade_animation_offset=”45px” width=”1/6″][text_output][/text_output][/vc_column][vc_column fade_animation_offset=”45px” width=”5/6″][text_output]Lots of noise today around Tata pensions black hole – an interesting read here from Andy Critchlow.

“Tata’s real problem is a connection to the British Steel Pension Scheme and its 130,000 members.

“As of March 2015, the fund showed a deficit of 485 million pounds. In dealing with this problem, Tata’s options are limited. It can write a check to the trustees for at least 2 billion pounds to cover any future shortfalls in the scheme and walk away, or it can establish a holding company that it would have to oversee for the next 40 years, according to independent pension expert John Ralfe.

Transferring responsibility for the scheme to a potential buyer of its UK assets is out of the question.

Full Article here[/text_output][gap size=”30px” id=”” class=”” style=””][line][gap size=”30px” id=”” class=”” style=””][/vc_column][/vc_row][vc_row inner_container=”true” no_margin=”true” padding_top=”0px” padding_bottom=”20px” border=”none” bg_color=”#ffffff” bg_video=”” class=”” style=””][vc_column fade_animation_offset=”45px” width=”1/6″][text_output][/text_output][/vc_column][vc_column fade_animation_offset=”45px” width=”5/6″][text_output]Labour politicians have joined with union leaders to demand the UK Government acts now to help safeguard the future of Shotton steelworks.

The call came 36 years to the day when more than 6,500 steel workers were made redundant by the then Tory Government, led by Margaret Thatcher.

The meeting at Shotton steelworks was organised by Welsh Assembly candidate for Delyn, Hannah Blythyn, who was joined by local Labour AM Carl Sargeant and MP Mark Tami, Clwyd South AM Ken Skates and Leader of Flintshire Council, Aaron Shotton.

Together they met with Unite the Union and Community Union representatives to discuss the future of the plant, which still employs 800 people and operates at a significant profit.

Mr Sargeant said: 

“Shotton is a proud success story for our region, a profitable steelworks that provides high quality employment for hundreds of people.

“Its future must be secured and we need the UK Government to take urgent action to support its continued success into the future.”

Mark Tami MP said:

“Shotton steelworks is a world leader and employs a huge number of highly skilled people.

“They and their families deserve more than warm words from the UK Government, they deserve action. We can’t allow to happen in the coming weeks what the Tories did to Shotton in 1980.”

Hannah Blythyn, who has served for several years as a Unite the Union campaigner for workers’ rights, added:

“The Tories let down the steelmaking heartlands of North East Wales in the 1980s. We can’t allow them to do the same again.

“Ministers in London need to stop talking and to take immediate measures to keep plants like Shotton operating. This plant emerged from the ashes of the 1980s to succeed against the odds. Its success cannot be ruined by UK Government inaction.”

During the discussion with workers and union leaders, the Welsh Labour politicians committed to fighting for Shotton’s future and the continued presence of a steel family within the UK.

Cllr Shotton said:

“The growth of the economy in North East Wales is dependent on the steelworks continuing to be a success.

“A united front by Labour politicians is crucial in building pressure on the UK Government to take decisive and lasting action. The British steel industry will only survive if the UK Government applies a national strategy to safeguarding its future.”

Ken Skates said:

“North East Wales once had an incredible wealth of steelmaking plants. Steadily in the 1980s Shotton and Brymbo were undermined, shrunk and closed. It was only because of the skills and commitment of the remaining workforce, along with the determination of former MP Barry Jones, that the Shotton site remains open and successful today.”[/text_output][gap size=”30px” id=”” class=”” style=””][line][gap size=”30px” id=”” class=”” style=””][/vc_column][/vc_row][vc_row inner_container=”true” no_margin=”true” padding_top=”0px” padding_bottom=”20px” border=”none” bg_color=”#ffffff” bg_video=”” class=”” style=””][vc_column fade_animation_offset=”45px” width=”1/6″][text_output][/text_output][/vc_column][vc_column fade_animation_offset=”45px” width=”5/6″][text_output]Flintshire County Council’s new ‘Superschool’ at Holywell is using 700 tonnes of steel in the construction

Part of Wales’ 21st Century Schools Programme it is currently under construction next to the existing Holywell High School.

The flagship £30M steel-framed super school will provide a combined facility for 600 high school students and 315 infant and junior school pupils.

Given the amount of steel being used in the schools construction and the fact imported steel in cheaper would the temptation be there to save money perhaps?

We asked Flintshire County Council through an FOI request where the 700 tonnes of steel originated from here is the response in full:

I would like to request information in relation to the new £30m school currently under construction in Holywell, Flintshire, part of the 21st Century Schools Programme, 700 tonnes of steel is being used in the construction of the school 

Q: Has the 700 tonnes of steel been manufactured in Wales?

A: With reference to your questions in respect of the steelwork at Holywell School, I can confirm that it has been manufactured (Processed & Fabricated) at our factory in North Wales. The raw material has been sourced from various UK steel stockholders, of whom are all certified in accordance to BS EN 1090 (CE Marking) and in this regard, confirms that the raw material will have been obtained within the European Union in accordance with the Construction Products Regulation (CPR).

[/text_output][gap size=”30px” id=”” class=”” style=””][line][gap size=”30px” id=”” class=”” style=””][/vc_column][/vc_row][vc_row inner_container=”true” no_margin=”true” padding_top=”0px” padding_bottom=”20px” border=”none” bg_color=”#ffffff” bg_video=”” class=”” style=””][vc_column fade_animation_offset=”45px” width=”1/6″][gap size=”30px” id=”” class=”” style=””][text_output][/text_output][/vc_column][vc_column fade_animation_offset=”45px” width=”5/6″][text_output]Petition to press David Cameron in recalling parliament gains 413 Flintshire signatures – want to sign it? click here
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 “Just continuing to produce steel for which there is not adequate demand isn’t the answer” said Foreign secretary Philip Hammond.

But what can be done to save the industry ?

Look at how much steel China produces, and continues to produce with no slow down despite construction in the county declining.

Edwin Basson, Director General of worldsteel, said,

“2014 saw the emergence of a new phase in steel markets. The evidence is that the steel industry is now entering a period of pause before undoubtedly picking up again when markets other than China, whose events dominated the steel industry for the past decade, drive new demand. Nobody can predict exactly when or where but we believe that urbanisation in emerging economies will play a key role for the steel markets in the future.”

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Tata Steel not keen on splitting the UK business up which isnt a surprise the Shotton plant is the ace in the pack, its a profitable and viable business.

[/text_output][vc_raw_html]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[/vc_raw_html][gap size=”30px” id=”” class=”” style=””][gap size=”30px” id=”” class=”” style=””][line][gap size=”30px” id=”” class=”” style=””][/vc_column][/vc_row][vc_row inner_container=”true” no_margin=”true” padding_top=”0px” padding_bottom=”20px” border=”none” bg_color=”#ffffff” bg_video=”” class=”” style=””][vc_column fade_animation_offset=”45px” width=”1/6″][text_output][x_gap size=”20px”]

[/text_output][/vc_column][vc_column fade_animation_offset=”45px” width=”5/6″][gap size=”30px” id=”” class=”” style=””][text_output]Tata’s decision to sell its UK operation could cost up to 15,000 jobs inside the company but the thinktank IPPR say up to 40,000 could be affected across the supply chain, Welsh steel plants alone use £60m of electricity a year.

Alfie Stirling, IPPR Research Fellow, said:

“British steel is facing extremely difficult trading conditions with slowing demand for steel from China having knock on effects for the industry right across the world.[/text_output][gap size=”30px” id=”” class=”” style=””][line][gap size=”30px” id=”” class=”” style=””][/vc_column][/vc_row][vc_row inner_container=”true” no_margin=”true” padding_top=”0px” padding_bottom=”20px” border=”none” bg_color=”#ffffff” bg_video=”” class=”” style=””][vc_column fade_animation_offset=”45px” width=”1/6″][gap size=”1px” id=”” class=”” style=””][/vc_column][vc_column fade_animation_offset=”45px” width=”5/6″][text_output]Jeremy Corbyn’s petition calling on David Cameron to recall Parliament breaks through the 100k milestone.

[/text_output][text_output][/text_output][gap size=”30px” id=”” class=”” style=””][line id=”” class=”” style=””][gap size=”30px” id=”” class=”” style=””][/vc_column][/vc_row][vc_row inner_container=”true” no_margin=”true” padding_top=”0px” padding_bottom=”20px” border=”none” bg_color=”#ffffff” bg_video=”” class=”” style=””][vc_column fade_animation_offset=”45px” width=”1/6″][text_output][/text_output][/vc_column][vc_column fade_animation_offset=”45px” width=”5/6″][text_output]David Cameron has said the government is “not ruling anything out” but has warned that he does not believe that nationalisation of the British steel industry is the right answer in the wake of Tata Steel’s decision to sell its UK plants.

Part-nationalisation seems to have been a buzz term this morning however  the Guardian report that government officials had warned it could carry a price tag of £1.5bn a year.[/text_output][gap size=”30px” id=”” class=”” style=””][line][gap size=”30px” id=”” class=”” style=””][/vc_column][/vc_row][vc_row inner_container=”true” no_margin=”true” padding_top=”0px” padding_bottom=”20px” border=”none” bg_color=”#ffffff” bg_video=”” class=”” style=””][vc_column fade_animation_offset=”45px” width=”1/6″][text_output][/text_output][/vc_column][vc_column fade_animation_offset=”45px” width=”5/6″][text_output]The media spotlight and political focus is firmly on the plight of the Port Talbot site which is reported to be losing £1m a day, Tata Shotton which specialises in galvanised and colour-coated coil products is a profitable and successful  business.

Deeside AM Carl Sargeant said “The Shotton group is still profitable and it must be safeguarded and jobs protected. I’ll make sure Shotton’s voice is heard in response to Tata’s proposal.”

[/text_output][/vc_column][/vc_row][vc_row inner_container=”true” no_margin=”true” padding_top=”0px” padding_bottom=”20px” border=”none” bg_color=”#ffffff” bg_video=”” class=”” style=””][vc_column fade_animation_offset=”45px” width=”1/6″][text_output][/text_output][/vc_column][vc_column fade_animation_offset=”45px” width=”5/6″][text_output]The Welsh Conservatives have said they will make the case loudly for the long-term future of Shotton steel when the Welsh Assembly reconvenes for a crisis meeting next Monday.

“Support from the Welsh and UK Governments will be critical in achieving the future of steel in North Wales – and the workers at Shotton deserve nothing less than to see every possible avenue explored.

“Welsh Conservatives have long called for action on business rates and procurement to support the steel industry’s future in North Wales, and all options must now be considered to secure a successful sale of the plant at Shotton, and elsewhere.[/text_output][/vc_column][/vc_row][vc_row inner_container=”true” no_margin=”true” padding_top=”0px” padding_bottom=”20px” border=”none” bg_color=”#ffffff” bg_video=”” class=”” style=””][vc_column fade_animation_offset=”45px” width=”1/1″][gap size=”60px” id=”” class=”” style=””][line id=”” class=”” style=””][text_output]

Wednesday March 30th

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Labour leader Jeremy Corbyn calling on David Cameron to act to protect the steel industry & recall Parliament.

 petition.parliament.uk

First Minister Carwyn Jones cancels planned visit to Wrexham.

Jeremy Corbyn urged the government to take urgent action to protect the UK steel industry, the Labour leader has written to David Cameron saying:

“Steelworkers and their families will be desperately worried about the uncertainty. The Government is in disarray over what action to take. Ministers must act now to protect the steel industry, which is at the heart of manufacturing in Britain and vital to its future.”

IPPR, the Institute for Public Policy Research say there will 40,000 job losses in the UK total if  Tata steel plants close according to their analysis.

The Think Tank say job losses related to the closure of Tata steel plants will be higher as these estimates do not capture the further impact of lost demand in the local economies from reduced spending power of workers and their families. This could lead to further business closures and job losses outside of the steel sector.

Alfie Stirling, IPPR Research Fellow, said:

“British steel is facing extremely difficult trading conditions with slowing demand for steel from China having knock on effects for the industry right across the world.

“In addition there is currently significant state investment in new steel facilities and plants from regions that are traditionally net importers of steel, such as North Africa and South East Asia. Combined with existing excess capacity in Europe, the US, Russia and China, this is widening the gap between the amount of steel the world can make and the amount it actually needs.

“The costs of sustaining all this excess capacity is biting heavily into the profit margins of steel producers around the world.”

Welsh Assembly to be recalled?

First Minister Carwyn Jones had formally requested for the Welsh Assembly to be recalled, Rosemary Butler presiding officer considering his request and announcement will be made later today.

Statement from Mark Tami MP for Alyn and Deeside.

“Yesterday’s announcement came as a complete shock, perhaps not in the respect of Port Talbot, rather the company’s decision to look for buyers for the whole UK part of the company.

“While Shotton is a profitable plant we cannot assume that its future is secure.

“The Government has been talking about intervening for quite some time; however it appears to be all talk and no action.

“The industry is in a state because of the dumping of Chinese steel, yet Government MEPs along with UKIP MEPs have blocked every attempt of stronger action.

“This Government is more interested in cosying up with Chinese investors rather than saving the steel industry.

Statement from Carl Sargeant, Alyn and Deeside AM

“I support the proposal of a recall for members of the National Assembly for Wales to reconvene to discuss the issues around the crisis in the steel industry.

“I vividly remember the impact of the high level of redundancies we experienced here in Deeside in 1980.

“The Shotton group is still profitable and it must be safeguarded and jobs protected. I’ll make sure Shotton’s voice is heard in response to Tata’s proposal.”

Union calls for a meeting with David Cameron

Roy Rickhuss, General Secretary of Community, the steelworkers’ union has called for an urgent meeting with the Prime Minister.

The call follows last night’s shock news that Tata Steel are set to put their entire UK operation up for sale,

Union officials had been in extensive talks at the Tata HQ in Mumbai for the past two days.

Before leaving Mumbai, Roy Rickhuss said:

“The UK is now on the verge of a national crisis. Tata Steel withdrawing completely from the UK risks destroying our entire steel industry. That would be a disaster both for those communities reliant on steel jobs and our entire industrial base.

“Feeling sick over the news concerning Tata Steel. Awaiting details for impact on all the sites.”Keith Jordan, Community Union Tata Shotton

“For any advanced, manufacturing economy, steelmaking capacity is not optional. Losing the ability to make steel would fundamentally change our economy forever.

“Community has lead the ‘Save Our Steel’ campaign thus far and today marks a new chapter in that fight.

“Today, I am calling on David Cameron to meet with me urgently to discuss how his government and my union can work together to safeguard the future of our steel industry. Community stands ready to play our part in averting that national crisis – the Prime Minister must now stand up and play his role too.”

Government is prepared to act – Business minister Anna Soubry

Business minister Anna Soubry told BBC Radio 4’s Today programme the first thing the government wants to establish is a time frame for the sale of Tata Steel’s UK operations.

She said finding a buyer will take time so it is important to understand how long Tata is willing to keep Port Talbot operating, the government is prepared to act and willing to consider “all options and I mean all options”.

If Tata wants to get out of the UK in a hurry it could mean the government taking a stake in the UK steel industry at least on a temporary basis until a buyer is found.

She says there may be other ways of keeping the Port Talbot plant operating – despite it losing £1m a day – without the government actually taking ownership of the steelworks.

“We need this commitment from Tata that we can have a proper sales process… I think we want to be talking about the early stages. There is a lot of consensus and there is a desire to work together.”

Tata to sell UK operation

Tata Steel’s 11 man board concluded that a plan aimed at saving the Port Talbot plant which is reported to be making a £1m a day loss, was unaffordable.

In a statement issued in Mumbai last night, Tata said it noted with “deep concern” the deteriorating financial performance of its UK subsidiary in the last year.

The board unanimously concluded that a plan aimed at saving plants including Port Talbot in South Wales was unaffordable, said Tata, adding it had been in “deep engagement” with the UK Government in recent months seeking its support to achieve the best possible outcome for the UK business.

Tata Statement

“Following the strategic view taken by the Tata Steel Board regarding the UK business, it has advised the board of its European holding company ie Tata Steel Europe, to explore all options for portfolio restructuring including the potential divestment of Tata Steel UK, in whole or in parts.”

This would include the sale of Shotton, Rotherham, Corby and Port Talbot.

The statement goes on to say:

“While the global steel demand, especially in developed markets like Europe has remained muted following the financial crisis of 2008, trading conditions in the UK and Europe have rapidly deteriorated more recently, due to structural factors including global oversupply of steel, significant increase in third country exports into Europe, high manufacturing costs, continued weakness in domestic market demand in steel and a volatile currency.

“These factors are likely to continue into the future and have significantly impacted the long term competitive position of the UK operations in spite of several initiatives undertaken by the management and the workers of the business in recent years.”

Unions reacted with shock and anger at the company’s decision taken at a board meeting in Mumbai, union leaders had travelled to Mumbai in an effort to persuade Tata to invest in the business.

Roy Rickhuss, General Secretary of the steelworkers’ trade union Community, said:

“We travelled to Mumbai to secure a future for steelmaking in South Wales and we are disappointed that the future remains uncertain, not just for Welsh steelworkers but for thousands more workers in Tata’s businesses elsewhere in the UK.

“We will of course wait to see the detail of Tata’s divestment plans but, as we said before, it is vitally important that Tata is a responsible seller of its businesses and provides sufficient time to find new ownership.

“There is also a crucial role for both the Welsh and UK governments to do all they can to ensure a future for Tata’s remaining UK steel businesses and to provide every assistance to secure a buyer that will continue steel making.

“We don’t want just want more warm words, we want a detailed plan of action to find buyers and build confidence in potential investors in UK steel.

Responding to the news emerging from Mumbai First Minister Carwyn Jones said:

“I want the Welsh steelworkers and their families to know that no stone will be left unturned in our bid to support you through what comes.

“Whilst we have serious disagreements with the U.K. government on many issues at the moment, we will work with them and anyone else, who can help to secure a sustainable steel industry in Wales

“Wales has faced up to tough times before, we will always stand in solidarity with our brilliant, skilled workforce and with our communities.”

The UK and Welsh governments in what’s believed to be a ‘first’ released a joint statement it said;

“This is a difficult time for workers in Port Talbot and across the UK. During the review process, we remain committed to working with Tata and the unions on a long term sustainable future for British steel making.

““Both the Welsh and UK governments are working tirelessly to look at all viable options to keep a strong British steel industry at the heart of our manufacturing base.”

Plaid Cymru Leader Leanne Wood released a statement on YouTube she said;

“Plaid Cymru will stand side by side with steel workers and calls for every party and every government to work together to save the steel industry in Wales”

Jeremy Corbyn, Labour leader, said ministers had to act to protect the steel industry and the core of manufacturing in Britain.

“It is vital that the government intervenes to maintain steel production in Port Talbot, both for the workforce and the wider economy, if necessary by taking a public stake in the industry,” he said.

Missing In Action.

Angela Eagle MP, Labour’s Shadow First Secretary of State said families and their communities will be desperately worried about the developments, she said;

“Steel workers at Tata, their families and their communities will be desperately worried this evening as they face ongoing uncertainty.

“Steel is a foundation industry that is hugely important for our economy. The Government should be doing everything possible to protect the industry in the short term as it faces this perfect storm.

“But after months of complacency and after a budget with no strategy for steel, Sajid Javid and his team seem to have gone missing in action at this crucial time. The Government needs to do whatever it takes to save this vital strategic industry which is the cornerstone of our manufacturing sector.”

Assembly Must Now Be Recalled

Welsh Conservatives and AM for South Wales Central Andrew RT Davies said their thoughts are first and foremost be with the people of Port Talbot who will be devastated by the news.

“Its quite clear that the Assembly must now be recalled prior to dissolution, and I note that William  Graham, in his capacity as Chair, has also called for an emergency session of the Business & Enterprise Committee.
“Back in February I wrote to the other party leaders to assess support for a cross-party delegation to  meet the commissioner in Brussels to discuss the issue of Chinese steel dumping, and it’s vital that  we speak with one voice in the fight to secure a viable future for Welsh steel.”Above all, the workers and sub-contractors at TATA want to see every possible avenue

“Above all, the workers and sub-contractors at TATA want to see every possible avenue investigated, both to ensure a successful sale and to secure a sustainable future for the industry in Wales.

This issue goes above party politics and all parties wiIl have to work together to achieve this. Earlier in the evening, the government had denied a claim that it was on standby to part-nationalise Port Talbot.

More Union Reaction

Dave Hulse, national officer of the GMB union said: “This is absolutely devastating news for all our members, their families and the local communities. Tata has let the whole of the UK steel industry down.”

Unite general secretary Len McCluskey said: “This is a very dark day for the proud communities and a proud industry which is now on the verge of extinction in this country.”Earlier in the evening, the government had denied a claim that it was on standby to part-nationalise Port Talbot.

The government denied on Tuesday evening a claim it was ready part-nationalise Port Talbot amid repeated rumours that the state could step in to rescue the industry.[/text_output][/vc_column][/vc_row]