Tata Steel calls for more government support after £240m investment in Wales30 July 2012

Tata Steel called for more government support for manufacturing after investing £240 million into its Port Talbot works in South Wales.

Dr Karl Köhler, CEO of Tata Steel, believes that the government must reverse the policies that contribute to the UK's high energy costs in order to stimulate growth in the economy.

Köhler said: "Our aim is not only to make this Welsh steelworks one of the most competitive steelmaking operations in the EU, but also to provide a strong foundation for the whole of UK manufacturing through the supply chains that this location serves."

Köhler was joined by the Welsh Government's first minister, the Rt Hon Carwyn Jones AM and Michael Leahy OBE, general secretary of the Community union.

Leahy said: "The government also needs to realise that without the conditions that create more demand in the economy, then the long-term prospects for the UK and our competitive position in international markets remain bleak, as is shown by yesterday's shock collapse in economic output and the ongoing double-dip recession".

The rebuild of Port Talbot's No 4 Blast Furnace and installation of a steel-plant gas cooling system is set to be completed in November this year.

Anna Reynolds

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