London, March 30

Indian steel giant Tata Steel today put its British business up for sale, placing thousands of jobs at risk and striking a heavy blow to the crisis-hit steel industry.

Tata said in a statement that trading conditions had ‘rapidly deteriorated’ in Britain and Europe due to a global oversupply of steel, a ‘significant increase’ in cheaper imports into Europe, weak domestic demand, high costs and currency volatility.

“These factors are likely to continue into the future and have significantly impacted the long term competitive position of the UK operations,” read the statement issued in Mumbai.

The company’s European arm Tata Steel Europe will now ‘explore all options for portfolio restructuring including the potential divestment of Tata Steel UK, in whole or in parts’ — including Britain’s biggest steel plant at Port Talbot in Wales.

“Given the severity of the funding requirement in the foreseeable future, the Tata Steel Europe board will be advised to evaluate and implement the most feasible option in a time-bound manner,” it said.

In response to the grim news, British government urged Tata to allow time to locate a potential buyer.

“We want enough time to be able to secure a buyer. That will take months,” said Business Minister Anna Soubry.

She insisted that Prime Minister David Cameron’s Conservative government was considering ‘all options’ and raised the possibility of management and unions being involved in any future plans.

Union representatives had travelled to Mumbai as a company board meeting was held to try to convince Tata to invest in the plants, which employ thousands in England and Wales. Politician Leanne Wood, leader of Welsh party Plaid Cymru, described the news as ‘devastating’ and called for Welsh regional assembly to be recalled from its Easter break to respond to the crisis.

Tata had previously announced a series of job cuts at its huge Port Talbot site, where it employs 4,000 people, with another 3,000 employed as contractors and temporary workers.