Tata in threat to shut down key Port Talbot steel plant
Tata Steel could close one of its two blast furnaces at Port Talbot unless the government puts in place long-term plans to help the industry by summer
Tata Steel could close one of its two blast furnaces at Port Talbot unless the government puts in place long-term plans to help the industry by the summer.
The Indian group has told ministers they must provide details of the aid by July to proceed with a potential multi-billion dollar investment in green steelmaking facilities at the South Wales site.
The steelmaker has now said it was “concerned” about the amount of aid currently being offered and that the budget was a missed opportunity for the government to emphasize its commitment to the industry.
Hotspot: Tata Steel has warned it could close a blast furnace in Port Talbot
Officials are in talks with Tata Steel and British Steel, which operate the country’s only other two blast furnaces, to provide them with £300m each to jump-start investments in green technology.
One of the blast furnaces at Port Talbot will be shut down in the next two to three years and Tata will soon have to decide whether to extend its life, close it or replace it with a new electrical steel plant.
Shutting down permanently without new technology could lead to the loss of thousands of jobs and give another hammer blow to the UK’s already dwindling industry.
Energy costs have been a major bottleneck for industrial groups, including the steel industry, for many years. The government has committed to cutting costs through a ‘supercharge’ scheme, but it will take at least a year to get off the ground.
Defender: Actor Michael Sheen fears for home city
A spokesman for Tata Steel told The Mail on Sunday: “While we see a positive direction from some of the recently announced energy measures, we remain concerned that the measures will not be enough to enable our industry to accelerate towards green steel production. to go. and scale, the spring budget was an opportunity for the government to further demonstrate its commitment to supporting a low-carbon and competitive steel industry in the UK.”
Award-winning actor Michael Sheen, who grew up in Port Talbot, told the MoS it was ‘unthinkable’ that the sector could be in danger.
“Growing up in Port Talbot and now returning to live here again, I am well aware of how important the steel industry is, not only to our community but to our country as a whole,” he said.
A spokesman for the Department for Business and Trade said it is “committed to securing a sustainable and competitive future” for British steel.