Tata Port Talbot 'not out of the woods yet', says UK boss

Despite improvements, Tata's operations are not "out of the woods yet", the company's UK boss has said.

Chief executive Bimlendra Jha praised the "significant effort" to turn things around - after Port Talbot was said to be losing £1m a day earlier this year.

Tata looked to sell its UK business, but paused the process in July.

Losses at Port Talbot have been reduced by a turnaround plan and better market conditions such as rising steel prices and a drop in the pound's value.

Mr Jha also said he expects the UK government to keep a promise of helping to solve the company's pension problems.

However, he warned: "We must remember that whether you drown one foot under the water or ten foot under the water, you still drown."

A £485m pension deficit was given as a reason for some potential buyers being put off.

The UK government under the previous prime minister, David Cameron, launched a consultation that would have brought in legal changes to the scheme.

It would have reduced its deficit by making benefits to members less generous.

'Never lose hope'

But it is believed the government is not able to push the legislation through the commons due to many MPs fearing it would set a dangerous precedent for other troubled schemes.

"It is true that we're not seeing enough movement there but we never lose hope, we keep working", Mr Jha said.

He was attending a Consular Association in Wales event to discuss the impact of Brexit.

Tata put the sales process for its UK operations on hold while it negotiated a possible merger with the German steelmaker, ThyssenKrupp.

But management buyout team Excalibur said last month it was willing to increase its bid for Tata's UK operations and work with Liberty, another bidder.

Liberty confirmed on Wednesday that it had held talks with Excalibur and would consider a joint bid.

Mr Jha said he had received nothing from either company in writing or verbally to suggest they were looking to re-enter negotiations over a possible sale.