Diolch, Dirprwy Lywydd. Yesterday, I issued a written statement following a press release from Tata Steel outlining details of their proposals for transformation of the European business. Today, I would like to take this opportunity to update Members on this announcement, which I know will be of concern to many of you and your constituents.

Following the announcement in May of this year that the proposed joint venture between Tata Steel and ThyssenKrupp would not be going ahead, Tata announced that it was working with restructuring consultants to develop a new transformation plan. Yesterday’s statement from Tata Steel is the first announcement the company has made concerning the outcome of their transformation planning. 

The statement said that the programme was needed to urgently improve the company's financial performance to make sure the European business becomes self-sustaining and cash positive, whilst enabling investment to safeguard its long-term future. 

The statement sets out the four areas on which Tata intends to focus to improve financial performance. These include improved sales and product mix, efficiency gains by optimising production processes, reduced procurement costs and lowering employment costs. As part of the focus on lowering employment costs, Tata steel has announced an estimated reduction in employee numbers of up to 3,000 across its European operations. It is expected that about two thirds of these roles will be office based.