Unions back planned management deal to save Port Talbot

Trade unions have backed a proposed management buy-out of Port Talbot steelworks and said it could indicate a “bright future” for the industry.

The head of the Welsh plant is hoping to deliver a deal to buy the Welsh plant and save thousands of jobs.

Stuart Wilkie, managing director, is one of up to 190 potential bidders who Tata Steel UK said they had “reached out” to in recent days. Wilkie spoke to Carwyn Jones, Welsh First Minister, about his bid today.

The firm is trying to sell the plant but has not commented on individual investors or bids. There is no time limit on the sale, it said.

Last month Tata decided to pull out of their UK operations, endangering up to 5,500 jobs. It has since sold its long products plant in Scunthorpe, which will save many of the jobs based there.

Community, the steelworkers’ union, today welcomed the potential Port Talbot buyout because of the possibility of saving jobs.

“We are still in the very early stages of the sales process; however it is clear that significant interest in the business exists from a number of different potential buyers. This is a sign that a long –term, profitable future for the industry is entirely possible,” said a spokesman.

“The steel industry’s best asset is its people, and Community, as the steelworkers’ union will continue to work closely with Tata, government and potential investors to secure a future for those people, their communities and the whole industry.”

Stephen Kinnock, MP for Aberavon, where Port Talbot is located, spoke in favour of a buyout, saying it was “the right way to go in principle”, but called on the Government must do more to support the industry.

“Ever since Tata Steel decided to sell its Strip Products UK business I have felt that a management buy-out (MBO), based on the proposals that are outlined in the turn-around plan, was the right way to go in principle.

“There are a number of credible buyers in the market, but sustainable success will only be achieved if the government starts to deliver something tangible on dumping, energy, procurement and business rates. Labour MPs have raised these issues 208 times in parliament since the general election, so there can be no more excuses, it is time for the government to act.”

Liberty founder Sanjeev Gupta is one of the few possible bidders to go public with interest in the Port Talbot plant, having talks with the Government earlier this month.