NEW DELHI: Loss of jobs for around 2,500 workers at Tata Steel’s operations in the UK, which are in a transition phase, is “inevitable”, the company’s CEO T V Narendran said.

Fear of job losses has attracted criticism of the workers’ unions and they are continuously protesting against the company in the UK.

India-based Tata Steel owns the UK’s largest steelworks of 3 million tonne per annum (MTPA) at Port Talbot in South Wales and employs around 8,000 people across all its operations in that country.

As part of its decarbonisation plan, the company is shifting to low-emission electric arc furnace (EAF) process from the blast furnace (BF) route which is nearing its end of life cycle.

Speaking to PTI, Narendran said the transition to EAF with the UK government aid will make the company competitive in terms of reduced production cost, and also help in reduction of 5 million tonnes of Co2 per year.

“But all this involves 2,500 job losses and that is what the unions obviously are not happy with. And that’s a conversation going on with the unions to how can we do it in a smooth as possible way. It is inevitable,” he said.

In September 2023, Tata Steel and the UK government agreed on a joint investment plan of 1. 25 billion pounds to execute decarbonisation plans at Port Talbot steel making facility in Britain.

Of the 1. 25 billion pounds, 500 million pounds was provided by the UK government.

Sharing the updates on the UK operations, Narendran further said the coke ovens were already closed in March.

One blast furnace will close in June because it is operationally struggling, and the second blast furnace will close in September for reasons of asset quality as well as for reasons of financial bleed.