Scottish steel task force in 'urgent action' pledge

A task force set up to discuss the planned mothballing of two Tata Steel plants in Scotland has agreed to work "urgently" to find a buyer for the businesses.

The announcement came after the group held its first meeting.

It was chaired by Scotland's business minister Fergus Ewing and included representatives from trade unions and Tata, as well as councils.

Tata last week announced plans to close plants in Motherwell and Cambuslang.

A total of 225 jobs are threatened at the Dalzell plate rolling works in Motherwell, along with 45 posts at the Clydebridge plant in Cambuslang.

Tata also announced plans to cut 900 posts at its facility in Scunthorpe.

The industry blames cheap Chinese imports and high energy costs for a collapse in steel prices.

Following the first task force meeting in Hamilton, Mr Ewing said: "Today's first meeting of the task force was a chance for all members to agree that our primary focus is to secure an alternative operator for the Dalzell and Clydebridge plants and retain as many jobs as possible.

Business Minister Fergus Ewing said all members of the task force agreed not to "give up on our steel industry"

"Tata Steel gave an update on global market conditions, the challenges it faces in its UK operations and its commitment to work with the Task Force to find a viable future for the business.

"We also heard the optimism and determination of the trade unions to maintain a viable steel industry."

Douglas Fraser

Business and Economy Editor

When the going gets tough, it's time for a task force. But for what?

Such a force meets for the first time on Thursday. Its task is to save the Scottish steel industry. Or is it?

Perhaps, instead, this is the forum in which to address the possibility that there is no way of keeping the slabs rolling at Dalzell and Clydebridge, and that it is proving very hard to find a buyer.

Read more here.

He added: "The Scottish government has been looking urgently at what more we can do to help, on issues like business rates, energy efficiency and generation, how to cut operating costs at the plants and considering the public procurement of steel in our forward infrastructure investment programme.

"In addition, Scottish Development International now has a prospectus to take to potential operators around the world, to seek out and connect with untapped businesses and investors.

"All members of the task force agreed we will not give up on our steel industry and we will work urgently across all fronts to meet our aims."

'Devastating impact'

Eddie McAvoy, leader of South Lanarkshire Council which hosted the first task force meeting, said: "If the proposed closures go ahead it will have a devastating impact, not just on the workers involved and their families but on the wider communities.

"The best outcome would be if we can help find a way to keep these two important steel plants open."

The task force will meet again on 13 November and will be hosted by North Lanarkshire Council.