Tata Steel may have to sell Trostre steel packaging plant
Tata Steel could have to sell its Trostre steel packaging plant in Llanelli if it mergers with German steel giant ThyssenKrupp.
Indian-owned Tata has agreed on a new joint venture with ThyssenKrupp, to create a huge new entity employing 48,000 across the UK, Germany and the Netherlands.
The merger is now awaiting final approval from the European Commission, with a final decision expected in April.
However, while the commission cannot lay out conditions on how any merger is realised, the companies could come up with solutions to satisfy the EC.
Tata Steel has two steel packaging plants in Trostre and Duffel in Belgium which employ over 1,000 workers combined making food and aerosol cans. The Trostre plant employs 640.
However, union Unite, said that any sale of Tata’s packaging plants must be “done responsibly” and in full consultation with what is the UK’s largest manufacturing union.
Unite’s national officer for steel, Tony Brady said: “We are aware that the European Commission is likely to order Tata Steel to sell some of its packaging operations so that the much needed joint venture with ThyssenKrupp gets the green light.
“Unite is monitoring the situation and engaging with Tata Steel as we seek to ensure that workers are not left high and dry or subject to any fire sale as a result of a European Commission ruling.
“Workers are a business’ most important asset and it is vital during this process that Tata Steel continues to act transparently and as a responsible seller should it be ordered to offload parts of its UK operations.
“Anything less would be a kick in the teeth for a workforce that has worked tirelessly and with great sacrifice to keep the UK’s steel industry alive.”
A Tata spokesperson said: “Tata Steel and Thyssenkrupp are committed to following due process with the directorate-general for competition to seek approval for the proposed joint venture of their European steel businesses.
“Both companies are committed to working closely with all relevant regulators to ensure the success of this transaction.”
Source: Wales Online