Tata Steel’s decision to plough GBP4m (US$5m) into a new tailor welded blanks line at its Wednesfield plant in the UK’s West Midlands region, has been hailed by its local Member of Parliament as “reassuring.”
Considerable doubt had been swirling around the steelmaker’s commitment to the UK as cheaper imports and the threat of dumping had threatened to scupper its future in Britain.
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But last week’s (15 February) opening of the line, used to press parts for BMW and Mini among others, is a welcome shot in the arm for the British government, which has been seeking a vote of confidence from overseas manufacturers as London prepares to invoke Article 50 next month, paving the way for the UK’s secession from the European Union (EU).
“Certainly a GBP4m investment is a major commitment to this site and it is part of a broad GBP20m investment overall,” MP for Wolverhampton North East, Emma Reynolds, told just-auto at the Tata Steel site.
“This will be a highly specialised piece of kit that will make products for big car companies, most notable [y] for Jaguar Land Rover, but also BMW, Nissan and Honda.
“It does reassure me they [Tata Steel] are committed to this site.”
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By GlobalDataReynolds also sits on the British House of Commons Brexit Select Committee, whose role is to hold government policy up to forensic examination and emphasised her wish “free trade has to be a level playing field” for everyone.
Part of the Select Committee’s work may entail examining British Prime Minister, Theresa May’s relatively cryptic comments in her recent speech outlining the first stages of moving to triggering Article 50, including references to securing “frictionless” trading between the UK and EU.
The UK Premier also said although she wanted Britain to quit the Single Market, she wished to seek access to it through a Free Trade Agreement, which she said could see the automotive sector using Single Market “arrangements,” although these remain unspecified.
“As I understand it they are proposing certain industries [Single Market arrangements] including automotive, which is to be welcomed,” added Reynolds.
“The problem is, the Single Market is much more than a free trade zone. It is [an] integrated supply chain that goes across borders seamlessly. It is trading without customs duties.
“Our European partners are not just interested in the economy. We have made a very political decision to leave the EU – we can’t expect politics not to affect their decision making. This will be a political and and economic negotiation and we should not underestimate politics.”
One of only a few in the world, Tata’s new line trebles the Wolverhampton site’s capacity for tailor welded blanks, adding to the existing high-throughput line that provides linear and non-linear/2D processes.
It is claimed to be the most efficient, fastest machine in the UK and possesses the largest volume producing capacity.
Tata Steel’s Automotive Service Centre – part of the company’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 site which has totalled GBP20m in the last three years.
