Tata Steel planning to sell Scunthorpe steel plant

The UK steel industry has yet again been hit with another blow as a new report has claimed Scunthorpe’s Tata Steel plant has “no future.”

According to The Sunday Times, the European boss of the Indian conglomerate plans to sell the plant by April because its long-products arm, of which Scunthorpe forms the core, doesn’t fit into the future plans of the firm.

If the Tata Steel plant isn’t sold within the next five months, then it will be forced to close. US industrial tycoon Gary Klesch was going to purchase the plant, but this deal fell through in the summer.

Several new biddings are believed to be eyeing up the plant, and according to the paper, the Department for Business is attempting to attract new buyers with the prospect of long-term supply contracts, including a deal to feed Network Rail with steel for its multibillion-pound overhaul of the railways, as well as a supply contracts for the new High Speed 2 network.

900 jobs are already at risk at the plant, and if the closure goes ahead, even more employees will be facing redundancy.

Last month, it was announced that the local economy and employees affected by the job cuts will receive help with an initial support package of up to £9m from the Government.

Looking to promote your product/service to SME businesses in your region? Find out how Bdaily can help →