What's Going On With Tata Steel Shares Today?

Tata Steel‘s share price was volatile on Tuesday after the company’s U.K. subsidiary shared an update about strikes at its Port Talbot plant.

What Happened: Tata Steel UK has managed to avert potential strike action by the Unite Union, thereby preventing a possible disruption in its operations. The steel manufacturing giant received written confirmation from Unite Union that the latter would suspend their ongoing and proposed strike scheduled to start on July 8.

“We have received written confirmation from Unite Union that with immediate effect they are suspending their current action short of a strike as well as the proposed strike action due to commence on Monday 8 July,” a spokesperson for Tata Steel confirmed.

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The spokesperson further added that the company will now stop preparations for the early cessation of operations on Blast Furnace 4 and the wider heavy end in Port Talbot, which were planned for this week.

This development comes in the wake of Tata Steel’s offer to meet unions for fresh talks, conditional on the strike action in South Wales being called off. In a letter to the UK Steel Committee, which represents the Community, Unite and the GMB unions, Tata Steel had proposed to discuss future investment in Port Talbot, provided the unions agreed to suspend future industrial action.

The company will now resume discussions with the UK Steel Committee, focusing on future investments and aspirations for the business, rather than renegotiating the existing plan for the heavy-end closure or the enhanced employment support terms.

The wind-down process for Blast Furnace 5 has now begun to plan and is expected to produce its final iron at the end of this week.

Price Action: Tata Steel’s share price was down 0.086% to trade at ₹173.92 as the markets opened on Tuesday.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.