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Immediate action needed to stimulate manufacturing industry

The Government must take immediate action to create growth and remove obstacles for the recovery of the UK manufacturing industry, according to the CEO of Tata Steel.

Speaking at the launch of a £240 million investment at the firm’s Port Talbot plant, company CEO Dr Karl Kohler stressed the company’s commitment to making the Welsh steelworks one of the most competitive steelmaking operations in the EU whilst also providing a strong foundation for the UK manufacturing supply chain.

He was joined by the Welsh Government’s First Minister, the Rt Hon Carwyn Jones AM and Edwina Hart MBE OstJ AM, the Welsh Government’s Minister for Business, Enterprise, Technology & Science, in celebrating the project’s final, implementation phase.

He said: “Today I am crediting the Tata Steel team – which includes our partners in this project, the suppliers and contractors – who are delivering this highly complex, very impressive and vital engineering project.

“We are demonstrating our commitment to a future of serving our customers and local communities by making major investments for the future. But the economy is facing grave challenges.”

However, he also expressed concern that there may not be sufficient demand to warrant relighting the furnace immediately.

“I therefore call on all levels of government in the UK to respond to our commitment by taking action to create growth in the economy and by reversing policies that add unilaterally to the UK’s disproportionately high energy costs,” He added.

Michael Leahy OBE, General Secretary of the Community union, said: “We welcome this investment from Tata Steel as a measure of their strong commitment to the industry in Wales.

“However the Government also needs to realise that without the conditions that create more demand in the economy and stimulate investment and production, then the long-term prospects for the UK and our competitive position in international markets remain bleak, as is shown by yesterday’s shock collapse in economic output and the ongoing double-dip recession”.

This was posted in Bdaily's Members' News section by Ruth Mitchell .