With the verdict on Tata Steel's Port Talbot works hanging by the noose, potential bidders have begun to get desperate. Adding fuel to the burning fire, senior officials of the steel giant have declined to give any comfort on whether they intend to keep the blast furnaces running in the future. Just last week it had announced it was halting the sale of the UK business and is looking into a joint venture with Germany's ThyssenKrupp.
Koushik Chatterjee, Group Director and Tata Steel's Executive Director for Europe, offered no guarantees when asked for assurances for Port Talbot. He said Tata wanted to find a "sustainable solution of Port Talbot" and urged workers to "continue to work as hard as they always do" but made no promises. He said, "I think one needs to look at the global steel industry at this point in time. The vulnerabilities of the global steel industry are very significant in the context of massive over-capacity."
Declining to give steady assurances about the UK operations, he said, "It's not about guarantees. It's about how do you make a business more profitable and sustainable for the future because there are a lot of stakeholders in this whole issue and we would like to find a balance in ensuring that we get the right outcome. I would say the board of Tata Steel has always been very responsible to all its stakeholders, whether it is the employees, communities, shareholders, lenders and suppliers and customers."
Indian-origin businessman and one of the bidders, Sanjeev Gupta of Liberty House had expressed his frustration over reports of "pause". The firm released a statement that said, "This is sad and frustrating news for the UK steel industry because the sector needs a fresh start and we fear this decision will simply deliver more uncertainty over a longer period. In the short term we will continue discussions with Tata about the acquisitions of a number of important assets that fit well with our strategy." A Liberty spokesperson said, "From our point of view it's disappointing that, in the short term, we will not be able to apply our GreenSteel strategy on the scale which would have truly evolved and transformed Britain's steel and engineering sector."
