and Roy Rickhuss, the
chair of the National Trade Union Steel Co-ordinating
Committee, said the deal between Tata and ThyssenKrupp
had the potential to protect the long-term future of
steelmaking at Tata’s site in South Wales, its 4,000 jobs
and the wider supply chain. The site is home to the
Indian conglomerate’s strip steel business.
The government and unions said they welcomed the move as
long as commitments to safeguard jobs and extend blast
furnace operations over the long-term at Port Talbot were
maintained. This includes the relining of the site’s
second blast furnace.
The memorandum of understanding signed between Tata and
ThyssenKrupp, the German engineering group, marks the
latest stage in the development of a joint venture
between the companies to build a pan-European steel
enterprise. The company will become TK-Tata Steel.
Business Secretary said:
The Government has been working hard with the unions to
secure a sustainable future for Tata Steel in the UK,
its 4,000 employees at the Port Talbot site and its
supply chain.
Today’s agreement between Tata Steel and ThyssenKrupp
is an important next step in establishing their shared
ambition for Port Talbot as a world-class steel
manufacturer, with a focus on quality, technology and
innovation.
Roy Rickhuss, General Secretary of Community and chair of
the coordinating committee representing the Unite, GMB
and Community unions, said:
The steel trade unions cautiously welcome this news and
recognise the industrial logic of such a partnership.
This would create the second biggest steel business in
Europe which could deliver significant benefits for the
UK.


As always, the devil will be in the detail and we are
seeking further assurances on jobs, investment and
future production across the UK operations. As a
priority, we will be pressing Tata to demonstrate their
long term commitment to steelmaking in the UK by
confirming they will invest in the reline of Port
Talbot’s Blast Furnace No.5.
The agreement follows close working between unions, Tata
and the Government to ensure sustainable steelmaking
maintains a central role in a strong and successful UK
economy. It is hoped that the joint venture would also
enable TK-Tata, working with UK vehicle manufacturers and
their supply chains, to contribute to the focus on
innovation in the government’s Industrial Strategy.
The joint venture comes after the recent conclusion of
Tata’s discussions with the British Steel Pension Fund,
the Pensions Regulator and the Pensions Protection Fund
about a plan to manage its pension liabilities. This
enabled a Regulatory Apportionment Arrangement to be
reached, giving pension scheme members the opportunity to
transfer to a new scheme.
