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03/12/2015

Ministers Focused On Securing Operator For Tata Steel Plants

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Scottish Minister's are focused on securing a new operator for Tata Steel plants in Scotland, according to Business Minister Fergus Ewing.

The Scottish Steel Taskforce (SST) will seek a new head for the two mothballed steel mills once the minimum statutory period of 45 days consultation with workers is reached on Friday.

Tata Steel confirmed in October that the Dalzell plate rolling works in Motherwell and the Clydebridge plant in Cambuslang were to be closed, resulting in 270 jobs being lost.

However Mr Ewing said both the SST and Government remain focused on the future of Scottish steel.

"Scottish Enterprise and TATA Steel have carried out an extensive global search for an alternative operator for Dalzell and Clydebridge and are in discussion with some of the interested parties," he said.

"The Taskforce remains focussed on finding an alternative operator for Dalzell and Clydebridge and keeping jobs where possible. It will meet again next week to review progress.

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"In a hugely challenging global steel market, we want to create the best business environment for any new operator taking on the sites.

"The Lanarkshire Assessor will take into account the state of the steel industry for the next business rates revaluation in April 2017, while we are open to options for reducing the rates liability complying with state aids rules.

"We now know that energy costs at the sites could be cut significantly, while there is potential for renewable electricity generation and sale of heat from the plants."

In addition, Minister Ewing added the Scottish Government is pressuring the UK Government to maintain pressure on the European Commission to accelerate state aid clearance for the Energy Intensive Industries compensation package before Christmas.

"Representatives of the Scottish Government’s Partnership Action for Continuing Employment (PACE) initiative are delivering support onsite today and tomorrow for employees who may want to find another job, taking into account their skills and experience," he said.

Bimlendra Jha, Executive Chairman, Tata Steel's Longs Steel UK, said: "We continue to work closely with affected employees and their trade union representatives to ensure we provide as much help and support as we can. That work will, in this case, continue beyond the statutory 45-day minimum consultation period.

"At the same time Tata Steel is working closely with the Scottish Government and is fully engaged in the Task Force process of finding an alternative solution for the Dalzell and Clydebridge mills."

(LM/CD)

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