Tata Steel’s $12-million takeover of Corus would pave the way for the Indian steel giant to have a global reach in Europe as well as synergies with low-cost steel manufacturers in India too.
Corus, which brings in a capacity of 19 millions tones per annum, would also help the TATA, for improving its technology.
On the other hand, Community, the UK’s largest steel and metal industries union has sent some trouble signal for Tata.
The Union is dominant in Corus and represents more than 80% of its UK employees. It has shown the signs that some troubles are waiting for the new merged steel company. The Union has given some hints that it would oppose any job cuts because of take over.
Later, some sections of the British political groups also supported the demand of the Union. Several British MPs have insisted that the Tata Corus deal must give guarantees about the long-term future of Corus in this country.
The Community officials have warned Tata after the historical take over that they would not let it cut jobs in a process to reshuffle and downsize costs of Corus. They said that its 40,000 Corus steelworker members were waiting to hear if Tata would be a caring employer at four sites in the UK.
However, the Union also said that Tata as well as its rival Brazilian CSN had confirmed about no job cuts among Corus’s UK workforce.
However, there are some fears about job cuts at Corus’s giant Port Talbot steelworks. They fear that Tata might decide to import cheaper lump steel from its domestic operations.
Tata is now going to take the British operation with Corus where 24,000 employees are working in the UK and about 7,800 employees are working in Wales.
On the other hand, in Wales, about 3,100 are working at Port Talbot, 1,800 in Llanwern, 1,000 in Shotton and some others working at processing plants in Ammanford and Llanelli.
The Union said later that steelworkers in Port Talbot, Shotton and Llanwern maight easily rated among the most efficient steel workers in the world.