Tata Steel's UK arm seeks government bailout package
2020-04-27 08:43:17 [Print]
Tata Steel's UK arm is seeking an estimated GBP 500-million government financial package to survive through the COVID-19 lockdown period.
Tata Steel, which owns the UK's largest steelworks in Port Talbot in Wales, is holding discussions with the Welsh government as well as the UK Treasury as it seeks the GBP 50-million cap set on loans being offered under the UK's Coronavirus Large Business Interruption Loan Scheme (CLBILS) to be lifted.
"The GBP 50 million cap on loans that are now available under the government support scheme is only about 10 per cent of what Tata Steel actually needs," said Opposition Labour MP Stephen Kinnock, whose constituents make up much of the steel workforce in Port Talbot.
"Tata Steel estimates that it will take around six months to get back to business as usual, or as close as possible to it and the challenge they have is cashflow over that six month period. And the estimation is in the region of GBP 500 million," said Kinnock, who had also raised the issue in the House of Commons earlier this week.
Tata Steel, which owns the UK's largest steelworks in Port Talbot in Wales, is holding discussions with the Welsh government as well as the UK Treasury as it seeks the GBP 50-million cap set on loans being offered under the UK's Coronavirus Large Business Interruption Loan Scheme (CLBILS) to be lifted.
"The GBP 50 million cap on loans that are now available under the government support scheme is only about 10 per cent of what Tata Steel actually needs," said Opposition Labour MP Stephen Kinnock, whose constituents make up much of the steel workforce in Port Talbot.
"Tata Steel estimates that it will take around six months to get back to business as usual, or as close as possible to it and the challenge they have is cashflow over that six month period. And the estimation is in the region of GBP 500 million," said Kinnock, who had also raised the issue in the House of Commons earlier this week.
