How does Brexit affect the British steel industry?

The future of the British steel industry is in doubt after the Brexit vote, with fears that Tata Steel could liquidate its British factories.

The decision to leave the EU could block trade within the Union for the steel industry. This fact for which Tata Steel operations in Great Britain, around the Port Talbot plant, could be less attractive.

A historic vote for Brexit endangers the hope of saving the 11,000 jobs in the steel sector. Also, including 3,000 from the Port Talbot furnace, as Tata Steel reconsiders its future in the UK.

The Indian company put its UK assets up for sale in March. And he has already sold a factory in Scunthorpe. Although there have been rumors in recent weeks that Tata Steel bosses could accept government support to stay in the UK.

A source close to the 11,000 affected steelworkers described the result of the referendum as a „disaster”. What will endanger finding a new owner for the company.

Bad news for the future of the British steel industry

Another rumor circulating brings more bad news for the British steel industry. These indicate that Tata could sign a deal with German steelmaker ThyssenKrupp to merge its steel operations across Europe. It is believed that this would lead to the closure of the Port Talbot factory. Because it is less efficient than other factories of the merged company.

A Tata spokesman said: “We will always respect the decisions of the UK electorate. Whatever the political setting, we are committed to developing the best possible prospects for our UK operations. „

The drop in sterling caused by the referendum could, however, help the U.K. steel industry. Because it makes UK steel exports cheaper, and Britain a less attractive country for China.

Article source: http://www.telegraph.co.uk/business/2016/06/24/fresh-doubts-over-future-of-uk-steel-as-impact-of-brexit-vote-we/