Steelworkers at Port Talbot and Llanwern to start working to rule action
More than 1,500 steelworkers at Port Talbot and Llanwern will begin working to rule next week as well as an overtime ban in its dispute with Tata over its plans to end blast furnace steelmaking. The Indian-owned company said it will not shift from its position of closing the two blast furnaces at its Port Talbot steelworks. This will see blast furnace No 5 shutting down at end of this month and No 4 at the end of September. Instead the steelmaker plans to build a new electric arc furnace (EAF) which would make steel from scrap. The move will see 2,800 jobs losses at its UK-wide operations, where it employs 8,000. However, the biggest impact, with nearly 2,000 jobs, will be felt at Port Talbot where Tata has already closed its coke ovens. Unite’s overtime ban and work to rule is the first time in 40 years that there has been industrial action in the UK steel industry. In its General Election manifesto the Labour Party has committed to a £2.5bn fund to support the decarbonisation of UK steelmaking over the next decade. It is unclear how much of that could be assigned to Port Talbot. Labour has backed a union plan for a phased approach to decarbonisation at Port Talbot by running blast furnace no 4 until its expiry date in 2032. Tata insists it will not shift no its decision to close the blast furnaces regardless of a Labour taking power at Westminster following the General Election on July 4th. Unite general secretary Sharon Graham said: “Tata’s workers are taking this industrial action because they know the company’s claim that jobs cannot be retained in South Wales during the transition to green steel is a lie. They are standing up and fighting for a better future, one in which Tata’s British business can take full advantage of the coming green steel boom and not be sacrificed to benefit its operations abroad. “The current UK Government have backed Tata’s disastrous deal for Britain without even getting any job guarantees. But in less than a month, Tata will almost certainly be dealing with a new political reality. Labour has told Tata to wait for the £2.5bn steel investment fund, a commitment secured by Unite. That is what it must do. Unite will use every weapon in its armoury to ensure that it does.” Other steel unions have also balloted in favour of industrial action. Tata insists Port Talbot as a blast furnace operation is unsustainable, with a move to an EAF operation the only way to provide long-term security for remaining staff. The UK Government has committed £500m towards Tata’s £1.2bn EAF investment commitment. Until it is operational its downstream plants, which in Wales include those at Llanwern, Trostre, Shotton and Caerphilly, would utilise imported semi-finished steel. Tata claims that the steelworks is currently losing £1m daily, although it has been profitable in the past. Read More:Economy Minister Jeremy Miles on the future of Port Talbot steelworks Read More : New chair of the Development Bank of Wales .For its end of March, 2022 financial year Tata Steel UK made profits of £206m on £3.124bn of revenues - although boosted by a tax credit of £126m. In its last full financial year to March, 2023, it posted pre-tax losses of £674m, which were inflated by a £395m tax charge, on revenues of £3.127bn. Of its revenues the UK market generates nearly two-thirds £1.77bn, with mainland Europe £1.18bn and just £165m with the rest of the world. It had borrowings of £1.15bn. This includes inter group and parent borrowings of £503m. Combined loans of £175m to Tata Steel UK and Tata Netherlands Holdings have interest charges ranging from 5.25% to 6%. Before Tata split its UK operations from its Dutch steel operations in 2021, there were those who believed that legitimate inter-company charges were used to make the trading position of Port Talbot less favourable than those in Holland. The Mumbai-based group also charges Tata Steel UK for use of the Tata name. A Tata Steel spokesperson said: “Of the 4,500 Tata Steel UK employees in Port Talbot and Llanwern, 1,366 Unite members were balloted, 857 voted and of those 468 members voted for industrial action including strike action. “We have challenged the legality of their ballot process on multiple occasions and our position is that their industrial action is unlawful. “Furthermore, through extensive negotiations with unions the company twice substantially improved our support offering for affected employees - the most generous package in our history - we would have expected Unite to put this offer to their members. “Having now received notice of Unite’s industrial action, we have regrettably reverted our employee support package to closer to our standard terms. “We have written to our workforce to make sure that any employee subject to Unite’s notice and considering taking part in any industrial action is fully aware and understands that their contract of employment, associated collective agreements, and job description, as well as terms implied by established custom and practice and/or by law, may require them to work additional hours and continue to support and cover activities as outlined in Unite’s notices of industrial action.
Production of new Nissan models sends Unipres profits higher as bosses eye Jaguar Land Rover work
Nissan parts supplier Unipress has seen a significant hike in profits amid demand created by the car maker's e-Power Qashqai model, and has lined up future work with Jaguar Land Rover. Turnover at the Washington-based supplier of press-formed parts saw operating profits rise to £8.99m in 2023, compared with £2.79m the year before. That came amid a more modest increase in turnover from £173.9m to £177.5m. New accounts show staff numbers at the Japanese-owned business increased from 853 to 913 during a year in which it was successfully chosen to supply parts for Nissan's next generation electric vehicle. The documents, signed off at the end of May, show Unipres was also vying for business on the next generation Juke and Qashqai models which will also emerge from the Sunderland factory. Read more: Port of Tyne aims at "generational job opportunities" after strong results Read more: Teesside electronics manufacturer set for growth following multimillion-pound investment deal Meanwhile, bosses said concerns about the lack of semiconductors in the automotive industry were unlikely persist in the future, though they warned about the significant increases in utilities since April 2022 with markets remaining volatile despite Government support offered in 2022 and 2023. Similarly, they said labour costs continued to pose challenges. Despite those headwinds, Unipres said it continued to invest, including £4.2m spent on improvements to ageing machinery and assembly areas. And capital investment is expected to ramp up over the next two years as the firm, which also ran a Honda-supplying plant in Aston near Birmingham until 2021, prepares its production lines for new models. That investment is expected to be funded via a short term, £30m loan facility in place with Japanese lender Mizuho Bank until April 2025. Other borrowings include a long term facility of £25.1m that is split between Mizuho and Japan Bank for International Cooperation that is in place until June 2025. The Washington firm’s parent company in Japan has also promised loan finance where needed. Writing in the accounts, Unipress (UK) director of finance and administration Andrew Fawell said the company had continued to improve performance in 2023 thanks to the easing of semiconductor shortages and the effect of the first full year of Nissan Qashqai e-Power production. He added: “Our ongoing improvement plans supported by UPS ("Unipres Production System") principles along with cost ratio activity will continue to challenge and improve these key performance indicators in 2024. During the year the company achieved 14 of the 15 targeted KPls, which is the second consecutive year an outstanding achievement. These tools are key to ensure resources focus in the area that will enhance profitability.”
UK aerospace sector adds £11bn to economy, report finds
Britain's aerospace sector has added £11bn to the economy over the last decade, new data reveals. Figures released ahead of Farnborough International Airshow next month show the value of the sector has increased 16% compared to 2013. The 2024 Aerospace Sector Outlook report by ADS - the UK trade association for aerospace, defence, security and space - highlight 104,000 direct jobs in the industry, including 6,000 apprenticeship roles. The majority of positions (88%) are based outside of London and the South East, with the median average salary in the sector now £48,700 - 39% higher than the UK average. Turnover in the UK aerospace sector was estimated to be £30.5bn in 2023, with 36% generated by military activity and 64% by civil aerospace. The figures were part of a wider report released by ADS Group which reveals the aerospace, defence, security and space sectors added £38.2bn in value to the UK economy in 2023, growth of 50% in the last 10 years. According to the trade association, figures highlight 40% growth in turnover for businesses in these sectors, reaching a combined £88.4bn last year. Aimie Stone, chief economist at ADS Group, said: "The latest figures reflect the continued buoyancy, resilience and economic resolve that our sectors continue to deliver to the UK. Despite a global pandemic stalling manufacturing productivity, an ongoing critical skills gap, and demand outstripping capacity, we are still seeing strong long-term growth indicators as we continue through 2024." Employment across aerospace, defence, security and space is up a third (29%) on 2013 figures, with 427,500 employed in the industry in 2023. Of these roles, 23,000 are apprenticeships. Kevin Craven, chief executive of ADS Group, added: "ADS sectors are at the heart of UK advanced manufacturing and innovative digital services. Our true value extends beyond our economic footprint, underpinning UK society, families and our way of life."
William Cook Group chalks up rising revenues and profits amid growth in all markets
North steel specialist William Cook Group has seen revenues and profits rise after seeing demand rise in all of its main markets. The sixth-generation family firm, which has its headquarters in Sheffield, produces components for the rail, defence and energy sectors. Its site in Stanhope, County Durham, is the main site for its defence operations, as the home for its businesses Cook Defence Systems, William Cook Stanhope and William Cook Intermodal. Accounts for William Cook Holdings Ltd, representing the group of companies, showed group turnover rose 28.4% from £52.4m to £67.3m for the year ended July 2023. A breakdown in turnover showed increases in all of its geographical markets, with £40.8m coming from UK customers, £17.35m from continental Europe, £3.9m from North America and £5.17m from the rest of the world. Operating profit rose from £4.7m to £8.5m, while pre-tax profit increased from £5m to £8.5m. Profit for the financial period was £6.2m, up from £4.4m. Overheads, excluding exceptional items, were £9.47m, up from £8.5mm which it said in part reflected the acquisition of Chesterfield Metal Technologies in April 2023. Following the year end in April of this year the company also acquired Crowle Wharf Engineers Limited, a rail engineering company based in Scunthorpe, at a cost of £1m. During the year, employee numbers rose from 456 to 486. Group chairman Sir Andrew Cook highlighted how the company’s defence division aided the firm’s improved results. In the accounts report he said: “I am pleased to report improved results for the period ending 1 July 2023. Sales and profits increased in all our main market sectors, with defence particularly benefitting from the Ukraine conflict and NATO rearmament programme. In the rail sector, further new-build contracts in eastern Europe provided significant new business, supplemented by additional UK refurbishment work, and in the high integrity industrial division business levels and operational performance both improved significantly. “These improvements, supplemented by robust results from the Chesterfield acquisition of April 2023, have continued into the current year, which I am confident will reveal further increases in sales and profits. “Focus on investment has shifted from the largely complete defence and rail programmes to our industrial sector, where the new £2m radiography centre was opened in March 2024 to be followed soon by the installation of new production machinery at both the Sheffield and Ashton plants.
North West manufacturers upbeat as automotive and aerospace sectors ramp up production
Manufacturers in the North West are more upbeat about their prospects in the second half of the year as the automotive and aerospace sectors continue to ramp up production. The Q2 Manufacturing Outlook survey published by Make UK shows output and orders have picked up substantially compared to the first quarter and are set to strengthen in the next three months, in line with the national picture. The sector is set to outpace the UK economy as a whole in 2024. The North West is set to see increased production in the automotive and aerospace sectors, while the pharmaceuticals sector also continues to perform well. Make UK said: “This better picture is translating into increased recruitment intentions with job prospects especially strong compared to historical levels.” GENERAL ELECTION: Take our BusinessLive North West election survey READ MORE: Why North West is at the heart of the UK's electric vehicle transformation Business confidence has also risen, to match the highest level recorded since the survey started polling it in 2014. The only other time it reached the same level was during the immediate post-Covid rebound. Manufacturers were also asked for their top three priorities for the next government. More than two thirds (69.1%) said an industrial strategy was the top priority, with another 54.2% calling for stronger EU/UK relations and another 44% asking for the business tax burden to be reduced. Other priorities included investment in national infrastructure (31.5%) and reforming the Apprentice Levy (24.1%). Make UK is forecasting that manufacturing will grow by 1.2% in 2024, but that growth will slow to 0.8% in 2025. It expects GDP to grow by 0.9% in 2024 and 2% in 2025. Dawn Huntrod, region director for the North at Make UK, said: “After the economic and political shocks of the last few years there is now strong confidence among manufacturers in North West. At long last, companies can see concrete signs of growth and a much better economic outlook ahead. With prices cooling and, potential cuts in interest rates to come, the next Government must capitalise on this scenario by delivering a modern, long term industrial strategy which goes beyond the 2030s and has cross-Government support.”
Marvel-lous deal for mouthguard maker Safejawz
A Black Country sports equipment firm has struck a branding deal with huge US film and comic book brand Marvel. Aldridge-based Safejawz designs and makes mouthguards and is now selling products sporting designs depicting well known characters such as Captain America, Captain Marvel, Hulk and Spider-Man. The company was founded in 2014 by Ewan Jones and George Dyer who met at The University of Manchester and wanted to make sports mouthguards more fun and desirable. It now counts more than a million athletes and personalities as customers including England rugby player Joe Marler, Birmingham mixed martial artist Leon Edwards and YouTuber KSI. Email newsletters BusinessLive is your home for business news from across the West Midlands including Birmingham, the Black Country, Solihull, Coventry and Staffordshire. Click through here to sign up for our email newsletter and also view the broad range of other bulletins we offer including weekly sector-specific updates. We will also send out 'Breaking News' emails for any stories which must be seen right away. LinkedIn For all the latest stories, views and polls, follow our BusinessLive West Midlands LinkedIn page here. This latest tie up follows on from the company being awarded King's Award for Enterprise last month in recognition of its work to break into international markets. Mr Dyer said: "The Marvel Collection represents our brand ethos perfectly, allowing athletes of all levels to feel confident and bold, transforming a stereotypically known nuisance piece of kit into something you can wear with pride, that is both stylish and comfortable.