Tata Steel is stressing the crucial nature of the material to the UK supply chain as it emerges from a rocky period with its unions following resolution of its controversial pensions issue.
The steel giant made its remarks as it unveiled its latest line for tailor welded blanks in the company’s Automotive Service Centre in Wednesfield, in the UK’s West Midlands region.
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Much speculation has centered on Tata Steel’s commitment to the UK, following a highly-publicised and controversial sale of its plant at Scunthorpe in the British North East, but a burgeoning domestic automotive sector is generating significant new investment in the Midlands plant.
“In terms of our commitment to the automotive industry, you can see the growth in the industry,” Tata Steel head of marketing, automotive, Kevin Edgar, told just-auto at the Wednesfield site. “Steel is an integrated part of the supply chain [and] the capability we have is well positioned to further the UK market.
“The only thing that tends to limit our growth [are] customer purchasing strategies and rightly so. The thing that makes the difference is if we are [involved] in the design process – it means we are well positioned to influence applications – to show them we are a capable supplier.
“It is an ongoing process of making sure the OEM understands what is available to them and updating them on our materials – that is really important.
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By GlobalDataThe new line trebles the Midlands site’s capacity for high-throughput line which provides linear and non-linear 2D processes. It is claimed to be the fastest machine in the UK and possesses the largest volume producing capacity.
Tata Steel’s Automotive Service Centre – part of the supplier’s ‘Steelpark’ site – has been producing tailor welded blanks since their initial development in the 1990s with the new line heralding the latest phase of investment in the plant which has totalled GBP20m (US$25m) in the last three years.
“The whole site is focused on more than one industry,” added Edgar. “But I don’t see a negative downside at the moment. OEMs seem to want to continue producing vehicles here. We are supplying 40% of the components that are required for OEMs, so there is plenty of space for the supply chain to grow.
“This is all about breaking down steel into components that press shops can make use of.”
The new investment in the UK has provided a much-need fillip to its manufacturing sector, which is now facing a level of uncertainty as the country heads for the European Union exit door.
In particular, Tata’s commitment to apprenticeships will be welcomed in British government circles as proof of invesement in British manufacturing despite London’s decision to leave Brussels and the ensuring tariff and Customs Union negotiations which are now inevitably ensuing.
“We engage in apprenticeships here, very much so,” noted Edgar. “There is specific involvement with apprentices and we have an on-going programme teaching people to know about engineering and the importance of material to the engineering supply chain.
“There is a responsibility on our part to encourage people to join the value chain. We hook up with industry bodies – the SMMT [Society of Motor Manufacturers and Traders] has an active programme in that area.
Wednesfield’s Automotive Service Centre provides tailor welded blanks to several car manufacturers with operations in the UK and across Europe.
The facility’s range of outputs for automotive applications includes body sides, door panels. bonnets and side impact bars, while the wider site services other key non-auto British market sectors.
