Tata Steel’s Exit From Britain Threatens 15,000 Jobs

London:  British Prime Minister David Cameron will hold an emergency meeting of key ministers on Thursday over Tata Steel's decision to exit operations in Britain which has put 15,000 jobs in jeopardy.

British Minister for Small Business, Anna Soubry said the government is prepared to look at all options, including nationalization, in order to save thousands of jobs.

Tata Steel, which operates Britain's biggest steel plants, has put up its business for sale and said it cannot promise to keep the plants open, while it seeks a buyer. Koushik Chatterjee, group executive director of finance and corporate of Tata Steel, said: “There has been a rapid deterioration in performance in UK in the last 12 months, impacted by the currency, imports and muted market.”

The company’s move to sell its UK business comes less than three months before Britons vote on the country's membership of the European Union in a referendum dominated by concerns about the economy.  This could have an impact on Britain's closely fought June 23 vote over whether to stay in the EU.

Tata Steel's problems in Britain arose almost as soon as it bought Anglo-Dutch steelmaker Corus in 2007 for $13 billion, just before the global financial crisis. 

Britain's steel industry has also been hit hard by low-price Chinese imports, which have depressed prices, and manufacturers have asked the government and the European Union to impose anti-dumping duties.

Tata Steel is the second-largest steel producer in Europe. It has a crude steel production capacity of over 18 million tons per annum in Europe, although only 14 million is operational.