Tata Steel: UK's biggest steelworks to cease production after more than 100 years

Tata Steel: UK’s biggest steelworks to cease production after more than 100 years

Posted by Admin September 29, 2024 Bussiness

The UK’s biggest steelworks will cease production today after more than 100 years, leading to thousands of job losses across South Wales.

Blast Furnace 4 – the final furnace operating at Tata Steel’s plant in Port Talbot – will be fully shut down at about 5pm, with the last steel made late on Monday evening.

In an email sent to staff and seen by Sky News, Tata UK’s chief executive Rajesh Nair admitted it would be a “difficult day” of “great emotion and reflection”.

Tata Steel is replacing the furnace with a greener electric arc furnace which will use UK-sourced scrap steel, but that will not be operational until 2028.

The transition will cost £1.25bn, £500m of which is being paid by the British government and will lead to nearly 3,000 job losses, almost 75% of the workforce.

Tata Steel said in a statement it was “a significant event in the history of iron and steelmaking in the UK as the legacy steelmaking assets in Port Talbot close, having reached their end of life.”

But it said steelmaking at the site will resume in 2027/2028 thanks to its investment in “low-CO2 ‘green’ steel”, offering a “brighter, greener future”.

The scheme will “sustain more than 5,000 jobs across the UK, and give Tata Steel businesses across the UK a competitive market advantage.”

Unions have battled for months to push back the furnace closure and reduce the number of redundancies.

Roy Rickhuss, general secretary of the Community Union which represents most steelworkers at Port Talbot, said it was an “incredibly sad and poignant day” for the British steel industry.

“It’s also a moment of huge frustration – it simply didn’t have to be this way.”

“Last year Community and GMB published a credible alternative plan for Port Talbot which would have ensured a fair transition to green steelmaking and prevented compulsory redundancies. Tata’s decision to reject that plan will go down as an historic missed opportunity,” he added.

In an email sent to staff last Friday, Tata UK’s chief executive Rajesh Nair said: “Port Talbot has long been associated with the iron and steel industry and the closure of our heavy end operations will be a hugely significant and emotional day for employees – past and present – contractor partners, and the local community.

“While it will of course be a difficult day, it is a necessary step as we transition to a green steel future and secure the legacy of steelmaking at Port Talbot for future generations.”

As well as around 2,800 job losses, many fear there will be a greater number of workers in the wider supply chain impacted.

Today the Welsh government announced that businesses impacted will be able to apply for funding to overcome “short-term challenges” during the transition phase.

Financial support for affected businesses

Secretary of state for Wales and chair of the Transition Board, Jo Stevens, said: “Businesses and workers that supply Tata have been feeling the impact of the changes at Port Talbot for months.

“That’s why I announced this £13.5m fund within weeks of the new UK government coming into office, and have worked at pace with partners in Welsh government and the council to get applications open.

“I encourage affected businesses to come forward and check their eligibility for this financial support, as part of the wider support package we are putting in place. This government will back workers and businesses whatever happens.”

The giant Port Talbot steelworks will not close completely – it will continue to operate hot and cold strip mills to roll steel slab imported from overseas.

But it is a hugely significant day not only for the UK’s industrial infrastructure, but for a town built on steel that will no longer produce it.

The government announced earlier this month it will publish a strategy for the future of UK steel next spring.