Father Steel is considering the transfer of 50% of the shares of the Port Talbot steel plant to the UK Government

From the information published in the press, it seems that Father Steel is considering offering 50% of its shares in the Port Talbot steel plant in Wales to British taxpayers.

This option is discussed as part of the strategy to ensure the future of the business. Due to the blocking of the activity following the coronavirus pandemic.

According to „Sky News”, the steel giant in India would need about 900 million pounds from the government fund/Birch Project. This fund was established to provide state support to strategically important companies affected by the pandemic. If this proposal were to become a concrete reality, it would mean that this large producer of sheet metal would be renationalized.

This would be just one of the options discussed in the attempt to reduce the debts generated by the pandemic.

According to the Sunday Times, Tata Steel is also considering the option of closing the 2 furnaces of the plant. And replacing them with arc electric ovens. This variation would affect the approximately 3,500 jobs in the Port Talbot plant.

The trade unions are worried that with the transition to the production of steel in electric arc furnaces, there will be a massive loss of jobs, given that there will no longer be a need for all the structure necessary to manage the iron ore and coal used by the furnaces, the electric arc furnaces using just scrap metal.

At the same time, however, the Birch government fund has restrictive provisions vis-à-vis investments. The British government intends to invest only in those companies that commit themselves to zero emissions by the year 2000.

The Port Talbot plant was proposed for sale by Father Steel in 2016

Along with other operations of the Indian group in Great Britain. Then, with the announcement of the United Kingdom to withdraw from the EU, the process of selling the steel industry was blocked.

The Port Albot steel plant began its activity in 1923. In the 60s, this location was called Abbey Works. This was the largest steel producer in Europe with 18,000 employees.