The Trostre Plant in Llanelli

Part of 4. Topical Questions – in the Senedd at 3:50 pm on 3 April 2019.

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Photo of Ken Skates Ken Skates Labour 3:50, 3 April 2019

Can I thank David Rees for his questions and for his ongoing support for the steel industry in Wales? I should point out that, in terms of discussions that are taking place at the European Commission, this is, of course, a confidential negotiation between the European Commission and the joint venture partners, so it wouldn't be the place of Government to get involved in discussions with the European Commission. Our role has always been to create the right environment in which steel-making operations in Wales can be competitive and have a strong, bright future.

In terms of the question on whether Trostre would go on sourcing its steel from Port Talbot, of course, this will be a key concern of discussions that are going to take place between ourselves and Tata in the weeks to come. I am seeking discussions with the heads of Tata India's business, including, of course, with Bimlendra Jha, who's now returned to India, but with whom we still enjoy a very constructive relationship.

The joint venture is a 50:50 relationship between ThyssenKrupp and Tata Steel, and so we expect any pain to be shared equally in terms of any sale of assets. But I must stress again that the sale of Trostre would have to be conducted on the basis of it being a viable business in a competitive market, and I believe that that was stressed in the e-mail from Joe Gallagher to the workforce of Trostre just yesterday evening—that is absolutely correct.

Now, in terms of other steelworks in Wales, David Rees mentioned the Cogent Orb Electrical Steels business in Newport, and we are continuing to work very closely with Tata on that particular facility, of course. We have also helped in the successful sale of other concerns by Tata. For example, we helped to secure a future for its Afon Tinplate site. Now, on that occasion, we were able to ensure that there was a successful outcome and that all 43 members of staff were able to continue in their employment at the Swansea site, which now operates as part of the Tinmasters brand. Of course there will be anxiety at Trostre right now, but I am confident that with this Welsh Government continuing to focus relentlessly on creating the right environment in which steel facilities can succeed in Wales, those people employed at Trostre can enjoy a long-term future in the sector.