Today, we visit India where major steelmaker Tata has decided to sell its beleaguered U.K. business. The government is also extending steel safeguards to defend against cheap Chinese imports.
Tata To Sell U.K. Operation
India’s Tata Steel, Britain’s largest steelmaker, put its entire U.K. business up for sale to stem heavy losses, a move that would draw a line under its almost decade-long foray into Great Britain’s declining steel industry. After a marathon board meeting in Mumbai, the steel giant said the financial performance of its U.K. arm was not sustainable.
The company announced late on Tuesday night that its board had rejected an “unaffordable” turnaround plan for its main facility in Port Talbot, Wales, and, instead, gave the green light to a sale of the business. U.K. authorities are already exploring the possibility of either backing another steel company in a purchase or using tax money to purchase the business outright.
India Extends Steel Price Safeguards
India also extended safeguard import taxes on some steel products until March 2018, a government order said on Wednesday, as it looks to curb imports of cheap Chinese steel and shield domestic mills.
The safeguards were imposed last September.