Dark cloud of uncertainty looms at Tata Steel

Business leaders said more than 400 companies - from raw materials firms to cafes - would be hit hard if the Aldwarke, Moorgate and Templeborough plants shut.

Almost 500 job losses were announced last autumn, with many of those affected completing their last shifts this week.

The remaining workforce was plunged into fresh uncertainty by the news that the Indian giant’s board had voted to “divest” its UK plants, including a massive facility with 5,000 employees in the Welsh town of Port Talbot.

Furious John Healey said it appeared Tata had “thrown in the towel”, while chamber of commerce boss Andrew Denniff proposed a management buyout as a viable option to save the key Rotherham employer.

Mr Healey, MP for Wentworth and Dearne, called the news “a huge shock” and “a body blow”.

Nationalisation was suggested as a possible way of saving the industry, but business secretary Sajid Javid appeared to rule that move out, saying it was “rarely the answer, particularly if you take into account the big challenges the industry faces.”

Reeling from this week’s news, Mr Healey said: “We thought the board in India were looking at the future of Port Talbot, but this seems to suggest they have thrown in the towel on UK steelmaking.

“We have in South Yorkshire with speciality steels some of the best steelmaking, the best quality and the highest performing, anywhere in the world.

“There has got to be a future for steelmaking in South Yorkshire and we cannot sit by and allow this to be the end of steelmaking in the UK.

“You cannot have an advanced economy without a steelmaking base to support your manufacturing base.”

Mr Healey, who hosted Labour leader Jeremy Corbyn’s visit to Rotherham last week, said: “He wanted to know what personal problems people were dealing with as they face the uncertainty over whether they have got a job or not.

“It’s been one blow after another and this shock overnight coming from the board in India is just one more.”

The Labour MP said the Government needed to “step up” and “get a grip”.

“I want to see the Prime Minister saying to the Community union: ‘Yes, I will meet you, yes, I will discuss the future of steelmaking in this country,’ because it is too important for us to lose,” he said.

Mr Healey also condemned the Government for “dragging their feet” over energy bill help for the steel industry and stopping cheap Chinese imports.

He said: “We need to know that they are considering all options, including being ready to back a buyout if management and workers want to do that, including taking temporary ownership if that is required to see these plants safeguarded until they can be sold on to buyers who are prepared to invest and stick with British steelmaking for the long-term.”

Tata said following Tuesday’s board meeting in Mumbai that it would “explore all options for restructuring”, including the partial or full sale of its UK factories.

The company said trading conditions in the UK and Europe had “rapidly deteriorated” due to a global oversupply of steel and high costs and currency rates.

A statement added: “These factors are likely to continue into the future and have significantly impacted the long-term competitive position of the UK operations in spite of several initiatives undertaken by the management and the workers of the business in recent years.”

Rotherham Borough Council leader Cllr Chris Read said: “It’s upsetting and frustrating and I can’t imagine how it feels for the guys that are working there.

“We’ve just come through the last round of the 700 job losses. The last guys were expecting to finish on Wednesday or Thursday. 

“We were at the point where we were hoping there would be a period of calm, where Tata was able to put together a business plan and look at how to move forward. Then we get this awful news this week.”

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