Thousands of steelworkers to lose jobs as Tata announces plans to sell off UK plants

THOUSANDS of jobs are under threat after industry giant Tata announced proposals to sell off all its UK assets.

The steel firm's European holding company has been told to "explore all options for restructuring", including the prospect of offloading part or all of its UK operations.

It had been unanimously agreed that a plan to save UK plants including Port Talbot in South Wales was unaffordable.

But unions have attacked the move and some have urged the Government to intervene with the prospect of taking a public stake in the industry.

Union leaders travelled to the Tata base in Mumbai, India, to meet with the board and discuss the losses within its UK business, which was reported to be at £1million a day.

They had hoped the steel giant would agree to a plan to keep steelmaking in Port Talbot and other UK sites.

But instead the board decided to put its UK assets up for sale.

Labour MP Stephen Kinnock, whose Aberavon constituency includes the Port Talbot plant, accompanied the union delegation to Mumbai.

He said: "The fact that Tata Steel is committed to continuing and to moving forward with the plant whilst looking for a buyer… is absolutely critical.

"There were various scenarios before we came out here… We are now a little bit clearer on which scenario we now have and it isn't certainly the worst case scenario."

Labour leader Jeremy Corbyn also stepped into the row, urging the Government to take immediate action.

He said: "Ministers must act now to protect the steel industry and the core of manufacturing in Britain."

Roy Rickhuss, the general secretary of union Community, said the "worst fear" that Tata would announce closures had not been realised.

He added it was "vitally important" that the company allowed sufficient time to find a new owner for the businesses.

But finding a buyer that wants to keep the plant open will not be easy.

Allegations have been made accusing the Chinese steel industry of dumping products on the global markets at prices the UK plants cannot compete with.

Other factors that could affect the UK steel industry include high energy prices and the extra cost of climate change polices.

Tata has previously announced thousands of job cuts in the last six month.

In January, more than 1,000 jobs were cut including 750 in Port Talbot.

Last October nearly 1,200 jobs were lost at plants in Scunthorpe and Lanarkshire.