Tata Steel unions call for government support after Gary Klesch withdraws from deal talks

MUMBAI: Tata Steel unions said the UK steel industry needs support from government so it can be competitive in a global market, as it continues to be at a disadvantage because of high energy costs, compounded by environmental levies which are not faced by its competitors in Europe.

Union statement on UK steel industry plight comes after Anglo-American industrialist Gary Klesch dropped plans to buy Tata Steel's long product business in Europe. Unions were opposed to the potential sale of the longs business to Klesch.

"It seems that Klesch may not have been the right person for the job but his analysis of the challenges facing the UK steel industry is strong and one that is broadly shared by unions and steel employers," said Roy Rickhuss, General Secretary of Community, union representing highest number of Tata Steel workers.

Rickhuss added that the government’s much-heralded support for energy-intensive industries has been slow to come on stream, whereas French and German producers have benefited from policy changes by their own governments for a number of years.

He said even though they welcomed the UK’s recent vote in favour of extending anti-dumping duties on Chinese imports of wire rod, but there are many other steel products where the unions has serious concerns and it will be looking to the government to back further EU anti-dumping measures.