3. Statement by the Minister for Economy, Transport and North Wales: Tata Steel

Part of the debate – in the Senedd at 4:02 pm on 17 November 2020.

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Photo of Ken Skates Ken Skates Labour 4:02, 17 November 2020

Well, on that final point—and can I thank Mark Reckless for his questions—on that final point, the merger would not have addressed the challenge that UK steel operations currently face. They would have remained, and those challenges can only be answered through collaboration with UK Government.

In terms of the tension that exists, I would acknowledge fully that that tension is there, it is problematic, but the fact of the matter is that currently, at present, blast furnace generated steel is about the only steel that can be used in certain sectors, for example, in the automotive sector. And that is why Tata Steel in the UK provides steel to about a third of the demand of the automotive sector. Now, over time, new technology could be developed, refined and finessed to provide that grade of steel but, at the moment, it is simply not there. Now, I'm not going to be drawn on the type of technology that could be used in the future, whether it be based on hydrogen or electric arc furnace, a combination, whether there's a hybrid model that could be adopted. All I would say is that whatever transition takes place should happen over a period of time that secures the workforce, and secures all of the Tata Steel operations in Wales. And we will support, not just Tata, but the UK Government and the unions, in working together to that end goal.