Tata Steel is set to pull out of all its UK operations, including Port Talbot, in a move that could put thousands of jobs at risk.

The company announced late on Tuesday night that its board had rejected an “unaffordable” turnaround plan for Port Talbot and instead given the green light to a sale of its UK business.

The move will affect about 15,000 workers and comprises the sites that used to make up British Steel and then Corus, which was bought by Tata Steel in 2007.

Port Talbot is Britain’s biggest steelworks and employs 4,000 people. However, it is losing £1m a day, making the prospect of finding a buyer difficult.

Union leaders travelled to Mumbai to discuss the company’s UK business, hoping Tata would agree to a turnaround plan to keep steelmaking in Port Talbot and other UK plants.

The MP for Aberavon, Stephen Kinnock, who was in Mumbai to lobby the Tata board, was briefed after the board meeting by Tata’s chief financial officer.

Kinnock told the South Wales Evening Post on Tuesday night: “We will not allow the closure of Port Talbot steelworks. One way or another we will continue to make steel in Port Talbot but it looks like Tata do not back the plan. We will work with Tata and the UK government to help find a buyer for the plant.”

The news will affect other Tata plants including Rotherham, Corby and Shotton. It is already in the process of selling its business in Scunthorpe to Greybull Capital, an investment firm.

In a statement, Tata Steel confirmed its board had recommended exploring “all options for portfolio restructuring including the potential divestment of Tata Steel UK, in whole or in part”.

Tata blames cheap imports of Chinese steel, high energy costs and weak demand for threatening the future of its UK steelmaking.

It said it had been in deep engagement with the government about “seeking its support to achieve the best possible outcome for the UK business, within the restrictions of state aid rules and other statutory limits”. Tata said these talks would continue.

(The Guardian)