Explosion Hurts Two at Tata Steel U.K. Site -- Update

   By Nathan Allen

Tata Steel Ltd. (500470.BY) said Friday that two employees suffered minor injuries following an explosion at its Port Talbot steel mill in south Wales.

The Indian steelmaker said a spillage of molten iron shortly after 0230 GMT caused a number of fires across the site, which were then extinguished by emergency services.

By 1000 GMT the site had re-opened to works traffic, Tata said.

"We are currently investigating the cause of the incident and are looking to minimize any impact on production," a Tata spokesman said.

South Wales Police said on Twitter that the explosion damaged some buildings, but that there wasn't any risk to the public, and the highway that passes by the site would remain open.

U.K. media reported that a series of three explosions shook nearby houses, while videos posted on social media showed large plumes of smoke rising high above the plant this morning.

Port Talbot is the U.K.'s largest steel mill by production capacity and employs around 4,000 people, but the business has been dogged by financial difficulties in recent years as it struggled to compete with rising imports of cheap Chinese steel.

Tata had been exploring a sale of the plant but in December 2016 reached an agreement with workers to restructure its retirement plan and keep the plant operating until 2021.

The company is currently pursuing a merger of its European assets--including Port Talbot--with those of Germany's Thyssenkrupp AG (TKA.XE), a deal that will create Europe's second biggest steelmaker if it clears antitrust hurdles.

Write to Nathan Allen at nathan.allen@dowjones.com

(END) Dow Jones Newswires

April 26, 2019 07:08 ET (11:08 GMT)

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