Port Talbot steelworks threat in subsidies row

Thousands of workers at Port Talbot steelworks and the businesses that rely on it are facing uncertainty as a row over subsidies between owners TATA and the Government has escalated.

According to an article in the Financial Times bosses at the Indian-owned company wants more support in switching to greener steel production, or it may have to close sites in Wales.

Unite the Union says the discussions have been taking place for more than two years with no deal reached.

They want the UK Government to act now to secure future of Tata’s Welsh plants.

Unite Regional Secretary Peter Hughes said:

“Steel is a strategic industry and must be central to the UK’s economic strategy. The UK Government need to urgently refocus their attention from who their next leader is going to be and concentrate on supporting workers and the maintenance of highly skilled, well paid steel jobs here in Wales”.

It is understood that Tata are seeking £1.5bn in UK state aid to help fund the closure of two blast furnaces at Port Talbot and their replacement with two electric arc furnaces that are less carbon intensive.

Unite National Officer Tony Brady said:

“The steel industry is central to the economy of Wales and as a critical foundation industry must be maintained at all costs.

The UK Government needs to act immediately and intervene to financially support Tata in its plans to put Port Talbot at the cutting edge of green steel production.

“No steel plant in the world has decarbonised their production without Government assistance.

“If the UK Government fails to step up to the plate it will never be forgiven by our steel communities across Wales.”