Tata Steel to Close Blast Furnaces at Port Talbot, UK, Affecting 2,800 Jobs in Green Steel Pivot

20 Jan 2024 , 11:15 AM

Tata Steel announces the closure of two blast furnaces at Port Talbot steelworks in Wales by the end of the year, resulting in the potential loss of up to 2,800 jobs.

The move is part of Tata Steel’s strategy to revamp its UK steelmaking business, focusing on lower-carbon electric arc furnaces that require fewer workers than blast furnaces.

The phased closure of Port Talbot’s high-emission blast furnaces and coke ovens is expected to affect around 2,800 jobs, with 2,500 job losses likely in the next 18 months.

Tata Steel initiates a consultation process for restructuring and aims to maximize voluntary redundancies as part of the transformation plan.

Tata Steel CEO TV Narendran acknowledges the difficulty of the decision but emphasizes its necessity for building a sustainable long-term business in the UK. The plan includes significant capital expenditure for green steelmaking at the Port Talbot facility.

Trade unions Community, Unite, and GMB reject Tata Steel’s plan and consider consulting members on potential next steps, including industrial action.

Tata Steel offers a £130 million support package to aid affected employees in retraining and finding new jobs.

Previously, Tata Steel had threatened plant closure unless it received state aid for decarbonization and emissions reduction. The UK government provided £500 million last year to support ‘greener’ steel production at the largest steelworks, acknowledging the ongoing risk to 3,000 jobs.

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