Guarantees for the successful rescue of the UK steel industry is not
The UK government continues to take action to save the country's metallurgical sector. However, there is not the slightest guarantee that these efforts will yield the expected result. This was said in parliament, David Cameron, Prime Minister of the country. The government continues to look for buyers who wish to purchase the steel mill Port Talbot. In addition to his other assets are realized and Tata Steel Group, India. It is necessary to prevent the loss of a plurality of operating points. However, in the steel industry continues to be observed a critical situation. The proposal remains prohibitively excessive. Accordingly, not only the demand falls, but also the cost of steel production. So from the government action does not necessarily lead to the desired success.
April 26, 2016, the company David Cameron visited the Port Talbot. According to him, at least two interested persons considering the purchase of Tata Steel UK assets. The government, in turn, will be happy to support the new host plants. It consists in the acquisition of 25% stake in Tata Steel UK. This step is performed to reduce the final cost of the transaction. We also consider the possibility of reducing tariffs for electricity for steel mills. Also talk about the partial acceptance of the UK state pension liabilities.
This Bimlendra Jha, CEO of Tata Steel UK, is not too pleased with the actions of the government. According to him, the British government could be more active when the buyer searching a group of assets. He believes that the structural deficiencies adversely affect the country's steel sector. As a result, steel production in the UK is becoming unprofitable process. For this reason the Indian team put up for sale their own British company. Bimlendra Jha said that any deadline for the sale of the company is not provided. However, the Indian group is counting on the speedy realization of assets.
By the way, the problem of the country's metallurgical sector and affect the political aspect. This topic is actively used during the propaganda regarding the release of UK ES Solution acute issue was postponed until the referendum to be held on June 23, 2016. Skeptics argue that the EU has a devastating impact on the national steel sector.