Tata Steel's loss-making Port Talbot was scheduled to close with immediate effect but was kept open by the UK Government, it has emerged.
The Government stepped in to "secure a reprieve" when it learnt that the steel plant in Wales was due to close last month, business secretary Sajid Javid told the House of Commons today.
Mr Javid told MPs it was "not prudent" to go into details about what support the Government could offer the stricken business, which has been put up for sale by its Indian parent company with 11,000 jobs at risk.
The details emerged during today’s emergency debate in Parliament called by Angela Eagle, the shadow business secretary, about the future of the UK steel industry.
Mr Javid told MPs: "Investors know British steel is the best in the world, British steelworkers are the best in the world, and the government stands with the industry."
On Monday Mr Javid raised the possibility of the state “co-investing” in the Tata's UK business “on commercial terms”.
Unions have said that keeping Tata's UK plants open is of the utmost importance as it will help them retain customers and make the business more attractive to potential buyers.
The debate was called amid Labour attacks on the Government for its handling of the crisis. Mr Javid had to return to the UK from a trip to Australia with his daughter to deal with Tata’s announcement it was selling the strip steel business.
“The Government did not recognise the crisis that has been building up," said a spokesman for Ms Eagle. "It looks like ineptitude but we think it was more a case of ideology with them reluctant to be seen to be interfering in the market.”
Expressions of interest
Tata, meanwhile, has received “tens” of expressions of interest in buying its troubled British strip steel business since launching a sale of the loss-making business just 24 hours ago.
The company has prepared an information memorandum for possible buyers that it is keeping secret citing the commercially sensitive information it contains.
However, it is understood that the business for sale had an annual turnover of £2bn.
source; http://www.telegraph.co.uk