Britain’s biggest steel producer – Tata Steel – is seeking a £500m government bailout as the company and wider industry faces continued pressures caused by the coronavirus pandemic.
Tata Steel, owner of the Port Talbot steelworks in South Wales, made the request to the Treasury and the Department for Business, Energy and Industrial Strategy (BEIS).
Tata Steel has blamed the global lockdown and drastic drop in manufacturing output across Europe.
In a statement, a Tata Steel spokesman said: “We continue to work with both the UK and Welsh governments to identify what support is available.”
Tata Steel, which employs about 8000 people in the UK, has already been hit by a rise in raw material costs, with China’s reopening after the pandemic contributing to high iron ore prices even as global demand has slumped.
This week’s talks were at a preliminary stage and no agreement between the company and government ha sbeen signed.
The UK government has not released a statement on the matter.