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Tag: steel

Coronavirus: Tata Steel seeks £500m government loan

Coronavirus: Tata Steel seeks £500m government loan

Business
Britain’s biggest steel producer is seeking hundreds of millions of pounds in government support as the industry grapples with a slump in global orders caused by the coronavirus.Sky News has learnt that Tata Steel, owner of the Port Talbot steelworks in South Wales, has approached ministers to ask for a funding package worth in the region of £500m. The request is said to be under discussion with the Treasury and the Department for Business, Energy and Industrial Strategy.It comes after Tata Steel's big customers, which include car manufacturers, called a halt to production across Europe because of the COVID-19 pandemic.Although some plants are to reopen in the coming weeks, economists believe a recovery in industrial production will be slow and protracted with demand continuing to be weak
French minister in threat to veto British Steel deal

French minister in threat to veto British Steel deal

Business
A Chinese rescue of British Steel has been thrown into fresh doubt after a warning from the French government that it will withhold support for a deal.Sky News has learnt that Bruno Le Maire, France's finance minister, told the chancellor, Sajid Javid, during a meeting in Brussels last week that it would seek to veto a takeover of Scunthorpe-based British Steel by Jingye Group, a Chinese conglomerate. "Le Maire told Javid that there was no way the French would back the Jingye deal," a source briefed on the discussion said on Friday."The message came with the blessing of [French president Emmanuel] Macron."The latest intervention from Paris may turn out to be significant, with the British government attempting to secure the future of the country's second-biggest steel producer in the next f...
Port Talbot: Tata Steel bosses ‘can’t keep funding losses’

Port Talbot: Tata Steel bosses ‘can’t keep funding losses’

Business
The chairman of the Tata group has said the company "can't have a situation where India keeps funding losses" at its Port Talbot steelworks. Natarajan Chandrasekaran, chairman of the Tata Sons group which owns the steelworks in Port Talbot, said the plant needed to be "self-sustaining" in an interview with the Sunday Times. Tata Steel's pre-tax losses were £371m last year, up from £222m in 2017-18.The Unite union said the claims added "more pressure" on workers."Everyone will tell you that the Tatas have gone way beyond to keep this going," said Mr Chandrasekaran. "Anybody else would have walked away. "I don't want to make those tall statements [about commitment]. We are taking some hard calls. So, hopefully, we should see some r
Tata Steel: 1,000 UK jobs to go amid worldwide cuts

Tata Steel: 1,000 UK jobs to go amid worldwide cuts

Business
Tata Steel has announced it expects to cut 1,000 jobs across the UK as part of the company's restructuring plans.Two thirds of the job losses will be management and office-based roles, Tata said.In the Netherlands 1,600 positions are also set to go, with 350 others cut elsewhere in the world.Tata Steel's Europe CEO, Henrik Adam, said the company "cannot afford to stand still" as "the world around us is changing fast and we have to adapt".Steelworker's union Community said it was "seriously concerned"."We have been presented with short-term plans, which only create worry and uncertainty and do little to inspire confidence," it added."It feels like the company is just managing decline and we need a significant change of direction t...
BMW, Daimler and Volkswagen fined €100m after forming cartel to buy steel

BMW, Daimler and Volkswagen fined €100m after forming cartel to buy steel

Business
Germany's three largest car manufacturers have been fined a total of €100m for forming a cartel to buy steel for their automobile components.Germany's federal cartel office announced the fine for BMW, Volkswagen and Mercedes-Benz owner Daimler. The regulator said that from 2004 to 2013, the carmakers regularly met steelmakers and other companies in the supply chain to discuss paying uniform surcharges when purchasing steel.The watchdog added that unlawful prices resulting from the cartel were paid until at least 2016.BMW said it would pay a penalty amounting to €28m. Advertisement Daimler will have to pay €23.5m, a spokeswoman said. Volkswagen, Germany's biggest carmaker which also owns Audi, declined to co