Tata's decision to make major changes at Port Talbot steelworks, including the closure of two blast furnaces and job losses running into the hundreds, is not purely financial, the company's UK chief executive has said. But, after hearing his evidence, MSs said they did not believe the Indian steel giant was listening to concerns about the plans.
Chief executive of Tata Steel UK Rajesh Nair and Chris Jaques, the company's chief human resources officer, gave evidence to the Senedd's economy committee the day after MSs unanimously backed a call saying there was a viable case for blast furnace steelmaking and a longer transition to a greener future.
Mr Nair told MSs finances have played an important part but the decision is not purely monetary. He told the committee the company’s assets in Port Talbot are reaching their end of life which he said was compromising reliability, safety and timeliness of delivery. He said: "Just for the last quarter the business turned a loss of about £160m and in the first nine months of this financial year it’s about £330m…. We are likely to turn up with a loss of nearly half a billion in just one year – this is just not sustainable nor viable for any company to handle."
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Asked if Tata would look at alternatives if the UK Government offered more money Mr Nair said the company would be more than happy to examine additional investments. When asked if they would wait until after a general election, which could see a Labour UK Government which could make a different deal, Mr Nair said: "I don’t think any government would be willing to fund losses.” For the latest politics news in Wales sign up to our newsletter here.
In a statement after Wednesday's hearing committee chair Paul Davies MS said: "Today’s session with Tata Steel bosses is deeply disheartening and devastating for Wales’ steel industry. Despite huge opposition, and the terrible effects the closure of the blast furnaces will have on the workforce, their families and communities across south Wales, Tata are unequivocal and are not listening.
"This week the whole Senedd unanimously agreed that there is a viable future for the blast furnace – this has been completely ignored. Today we are calling on Tata to reconsider their position and to keep the blast furnace open."