Tata Steel 'to sell UK business'

Steel giant Tata is expected to announce the sale of its loss-making UK business, union sources say.

The decision puts the jobs of thousands of UK workers in doubt.
The Indian company held a board meeting in Mumbai on Tuesday at which the decision was made to sell its UK steel operations.

Union leaders had travelled to Mumbai in a bid to persuade Tata to invest in the business, but appear to have failed.
They had hoped Tata would agree to a turnaround plan to keep making steel at Port Talbot and other UK plants including Rotherham, Corby and Shotton.
Labour leader Jeremy Corbyn said he was "deeply concerned" and called on the government to intervene.
Plaid Cymru leader Leanne Wood tweeted: "If reports from Mumbai are true, it's devastating. @Plaid-Cymru wants Assembly recall. All must work together now to save our steel industry."
Labour MP Stephen Kinnock, who is with the union delegation in Mumbai, had urged Tata to "hold its nerve" and criticised the government for not sending a minister to lobby the Tata board.

Chinese competition

Business Secretary Sajid Javid is travelling to Australia on a business trip.
Tata has blamed fierce competition from cheap Chinese imports, regulatory costs and the strong pound for losses at its UK steel business.
Other factors affecting the wider UK steel industry include relatively high energy prices and the extra cost of climate change policies, as well as competition from China.
There have been allegations that Chinese steel is being "dumped" on world markets at prices that UK plants cannot hope to compete with.
At the same time China's economy has remained sluggish, meaning that the demand for steel from its construction sector is now weaker.