A merger between Tata Steel and German owned Thyssenkrupp which will create Europe’s second-biggest steelmaker, has been welcomed by the Leader of Neath Port Talbot Council, Cllr Rob Jones.
The companies officially announced last week that they have signed definitive agreements to combine their European steel businesses in a 50/50 joint venture to be named Thyssenkrupp Tata Steel.
In Wales, almost 7,000 people are employed by Tata, including at Deeside and more than 4,000 in Port Talbot which will see fresh investment including a possible full re-lining of Blast Furnace No. 5.
Cllr Jones said:
“This news is most welcome after a long period of uncertainty over the future of the Port Talbot steel plant.
“This new joint venture company will mean stability after crisis and new investment in the Port Talbot works is clearly positive.
“There are still concerns however over the US steel tariffs issue which is something we need to address to aid steel making not only here but across Europe.”
Tata and Thyssenkrupp say the new company will have a strong focus on performance, quality and technology leadership with the joint venture built on the strong foundations of common value systems and a long heritage in steel manufacture.
The transaction is subject to merger control clearance in several jurisdictions, including the European Union.
Natarajan Chandrasekaran, Chairman of Tata Steel, said:
“The joint venture will create a strong pan-European enterprise that is structurally robust and will focus on industry leadership. This is a significant milestone for Tata Steel and we remain fully committed to the long-term interest of the joint venture company. We are confident this company will create long-term value for all stakeholders.”
Dr Heinrich Hiesinger, CEO of Thyssenkrupp, said:
“We will create a highly competitive European steel player – based on a strong industrial logic and strategic rationale. We will secure jobs and contribute to maintaining value chains in European core industries.”
Under a joint Memorandum of Understanding by the two firms, there will be an extension of the existing Employment Pact to 1 October 2026 and they say “a specific commitment” is an ambition not have any compulsory redundancies in the UK as a result of the Joint Venture.