Tom Blenkinsop, MP for Middlesbrough South and East Cleveland, has today (5th November 2014) claimed that the collapse of the deal for Klesch Group to buy a Pembrokeshire oil refinery is a significant warning sign over their involvement of steel production on Teesside.
Last month, Tata Steel announced that it is restructuring its long products division leading to the Klesch offer which includes the special profiles businesses in Skinningrove, east Cleveland and Darlington; Teesside beam mill at Lackenby, distribution sites in Teesside and Newcastle, and Tata’s 4,000 jobs steel plant in Scunthorpe.
“The collapse of this deal is a disaster for the workforce in Pembrokeshire and it must act as a warning over the potential deal between Klesch and Tata Steel for its Long Products Division. It raises questions over how serious they are about taking over the business, and even more so that they continue to invest and that jobs are secured as part of the process.
“Given the inability of the Klesch Group to complete the purchase of the Murco oil refinery in Wales and the subsequent job losses to which this is leading, Labour will raise the issue in Parliament asking what safeguards are being in place to ensure that jobs in Tata Steel will be secure, regardless of whether the Klesch Group successfully purchases Tata’s Long Products Division?
“It is truly devastating what has happened in Pembrokeshire and I sincerely hope that a new buyer can step up to the mark. The Government must do everything in its power to provide every possible support to the highly skilled workforce.”