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PRIVACY
Manufacturing

Plaid Cymru call for Port Talbot Steelworks to be nationalised

First Minister Mark Drakeford has held talks with CEO of Tata Steel Europe Dr Henrik Adams

Tata steelworks in Port Talbot(Image: Jonathan Myers)

The long-term future of steel in Wales can only be safeguarded through public ownership, says Plaid Cymru.

The party is calling on the Welsh Government to ensure that the operations of Indian-owned Tata Steel º£½ÇÊÓÆµ are returned to public ownership as a first step to developing an alternative strategy seeing the primary steelmaking plant at Port Talbot becoming carbon neutral by 2035.

Plaid Cymru leader Adam Price said public ownership, with recapitalisation to fund an eventual move to hydrogen-based steel production via the issuing of green bonds, was the only to secure the long-term future of Tata's operations in Wales, which collectively directly employ around 7,000, but support thousands more jobs in the wider supply chain.

Mr Price said that after a period of stabilisation a publicly-owned operation could become a not-for-profit  co-operative ensuring that workers and steel communities had a "seat at the table."

It comes after the parent company of Tata Steel º£½ÇÊÓÆµ in Mumbai last week confirmed that while it is exploring options to ensure the long-term sustainability of its º£½ÇÊÓÆµ business, it was no longer prepared to provide financial assistance to the loss-making venture; which continues to suffer higher energy costs than competitors in mainland Europe and the challenging backdrop of global oversupply for steel, fuelled in particular by the Chinese.

Tata has been in discussions for months over a financial lifeline of £500m under the º£½ÇÊÓÆµ Government's project Birch initiative, which was set up in the wake of the pandemic to provide support for larger employers in sectors deemed of national strategic importance, such as steel. The only beneficiary to date is  Spanish-owned recycled steel venture Celsa Steel, which employs around 800 in Cardiff.

First Minister Mark Drakeford last week called on the Prime Minister to urgently act to ensure a funding deal, which could see the taxpayer taking an equity stake in Tata º£½ÇÊÓÆµ Steel, was swiftly agreed. Without a deal, coupled with the turning off of the financial support tap from Mumbai, there are concerns over the viability of the business.

Tata has also confirmed it is splitting its European operations into two distinct businesses, while announcing that its Dutch steel operation could be sold to Swedish steelmaker SSAB —  although at this stage no formal offer has been tabled. If a deal fails to materialise the º£½ÇÊÓÆµ and Dutch businesses, which currently come under Tata Steel Europe, will remain separate entities.