UK government may co-invest to save Tata Steel's Welsh unit

The UK government may decide to co- invest with a steel buyer to help save thousands of jobs at Tata Steel's loss-making Port Talbot steelworks in Wales, UK business secretary Sajid Javid said today.
"I've been in contact with potential buyers, making clear that the government stands ready to help. This includes looking at the possibility of co-investing with a buyer on commercial terms," Javid told the House of Commons.
His statement is the first firm indication that the UK government may resort to partial nationalisation of Tata Steel's loss-making units to save the nearly 4,000 jobs at Port Talbot, Britain's biggest steelworks, in which Indian- origin businessman Sanjeev Gupta has shown interest.

"Both the governments (British and Welsh) are very helpful and cooperative. Then it is a question of analysis, which we will have to undertake in-depth once we engage with Tata. That is when the model and concept we have clearly outlined and plan to pursue will be tested with real numbers," Gupta had told PTI over the weekend.
Javid's statement came as Tata Steel announced the sale of its Long Products Division to Greybull Capital earlier today.
Roy Rickhuss, secretary general of the steel union

community, said, "Since March, the way people have been treated has been very hard. No one knew if they would have a job by Christmas. But we have to recognise that prior to March, Tata had invested significantly in the UK".

"This proposal would secure jobs for years to come and bring serious investment, not just to Port Talbot but steelworks across the UK," he said.
Meanwhile, the Brexit referendum in June has changed economics for Tata Steel.
Britain's vote to leave the EU, and the accompanying crash in sterling, have transformed the competitiveness of its UK operation. About 40 per cent of the output from British plants is exported.
Thanks to the cheaper pound, a business that was losing a million pounds a day just a few months ago is now back in the black.