Tata Steel is closing one of two blast furnaces at its Port Talbot plant
Tata Steel closed one of its two blast furnaces at Port Talbot in South Wales on the day the United Kingdom (UK) voted for a change of government.
The decommissioning of blast furnace number 5 proceeded in sync with the timeline previously indicated by the company. The remaining heavy-end assets will be phased out in the second half of 2024, including the closure of blast furnace number 4 at the end of September.
In a statement on Thursday evening, Tata Steel UK said it had ceased operations at blast furnace number 5 at Port Talbot as the company continues its restructuring programme to tackle unsustainable losses of more than £1 million a day.
Blast furnace number 5 was put into operation in 1959.
Tata Steel UK CEO Rajesh Nair said in the statement that Tata Steel will do everything possible to mitigate the impact of this transformation on affected employees and the local community.
“This includes the most favourable financial support package it has ever offered, and facilities for training and upskilling activities alongside funding for small and medium-sized businesses through UK Steel Enterprise’s regeneration and jobs creation programme,” the statement said.
The Community union said on Friday it was important to look ahead now. It also said it would work with the Labour government, which has already pledged £3bn to support investment in the steel industry.
Alun Davies, the community’s national officer for steel, said: “We look forward to working with Labour to deliver the best possible future for our members in Port Talbot and across the steel industry.”
Before the British election, Labour had urged Tata Steel to shelve plans until after the election, saying the company had a “better deal” to offer.
In September 2023, Tata Steel and the UK Conservative government agreed on a £1.25 billion investment in Port Talbot. This included a £500 million grant from the UK government, which is now in the spotlight following Labour’s victory.
The investment is intended to restructure the UK operations, which involves switching from an emissions-intensive blast furnace process to a low-carbon steelmaking process via the electric arc furnace (EAF) route. The transition puts 2,800 jobs at risk, but will create 5,000 jobs at various Tata Steel sites in the UK.
Tata Steel is phasing out heavy assets in line with the restructuring plan.
Earlier this week it indicated that the resumption of talks with the UK Steel Committee will progress. It will focus on future investment and aspirations for the company, and not on a renegotiation of the existing heavy equipment closure plan or improved employment support terms, the company had said.
Community said in its statement today: “Community will welcome the resumption of discussions on a potential MOU, which have already secured significant commitments from the company for future investment. Furthermore, we look forward to working with our colleagues at Unite and GMB to finalise those discussions, after which the package will be put to a vote by our members.”
Earlier this week, the Unite union called off a planned strike at Tata Steel’s South Wales facilities.
First print: 05 Jul 2024 | 20:36 IST