Port Talbot businesses reflect a year on from blast furnace closure

Businesses in South Wales say the UK Government failed to protect Port Talbot, after Tata Steel shut its last blast furnace a year ago.

Around 2,500 jobs were thought to be lost in the move to greener production.

The new electric arc furnace, which is set to be commissioned at the end of 2027, is expected to reduce Port Talbot’s carbon emissions by approximately 90%.

Tata says that's equivalent to 5 million tonnes of CO₂ per year - and it'll also secure high-quality sustainable steel production.

Concerns were also raised for businesses supplying the steelworks, and those within Port Talbot which could see a drop in revenue.

Stephen Lambert runs Te-Bar in Swansea, an engineering business which used to supply the Port Talbot steelworks with machinery.

Stephen said:

"We had to downsize- we had to lay off four people, and was more looking for new work really to cover what we'd lost.

"We do get bits few jobs but not a lot.

"Not what we used to get."

Stephen's businesses received a grant from the UK Government following the blast furnace closure.

"It has been a financial struggle"

"It has been a financial struggle, a lot of companies are going bust as it as we speak, you know, with the loss of it all.

When asked whether Stephen thinks the UK Government has done enough to protect businesses- he said:

"The steelworks has been going down and down for a long while, now it's all gone, and it's never been replaced with anything.

"I've put a lot of faith in this electric arc, but, I mean, the energy costs are so phenomenal.

"So how are they going to run the electric arc? I don't know."

Tata Steel signed a contract in October 2024 with Tenova to deliver an electric arc furnace and additional advanced steelmaking equipment for its Port Talbot site.

The UK Government provided £80 million in direct support for workers and the wider community:

Secretary of State for Wales Jo Stevens said:

“The UK Government acted decisively to ensure that steelmaking in Port Talbot will continue for generations to come.

“We backed Tata Steel with £500 million to secure its future in the town and have provided £80 million in direct support for workers and the wider community.

“The construction of Tata’s new furnace is now underway and delivers on the promise we made to the community that steelmaking would be preserved.

“This, along with the development of floating offshore wind, plans for a Celtic Freeport and millions more for local regeneration, all mean that Port Talbot has a bright future.”

Neath Port Talbot Council gave the electric arc furnace planning permission in February. It is expected to be operational by early 2028.

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