Tata rejects plan to keep blast furnaces in Port Talbot
It comes as up to 2,800 jobs are likely to be lost across Tata's UK business
Last updated 26th Apr 2024
Tata Steel has refused a plan put forward by unions to keep one blast furnace in operation at the UK's largest steel plant while it transitions to greener steel making.
Chief executive of Tata, TV Narendran, says the plans aren't "financially or operationally viable."
It comes as up to 2,800 jobs are likely to be lost across Tata's UK business, with the majority of them at Port Talbot and Llanwern.
In response, unions have slammed the decision and have threatened industrial action.
It follows months of consultations between the steel giant and unions after it announced seven months ago that blast furnace iron production would end in South Wales.
Tata said the move towards greener production will secure the future of the UK's steel industry, adding that the UK government will be contributing £500 million towards the project.
Unite the union said it has a "mandate for strike action" and that it could be announced "very soon", meanwhile, The Community steel union is currently balloting its members on potential strikes.
Welsh Secretary David TC Davies said: “Today Tata Steel have announced the end of the consultation period for workers impacted by their decision to move to greener steel-making. Of course this is an extremely concerning time for the workers and for the wider community.
“The UK Government set up the Transition Board to help affected workers and met today in Port Talbot where partners agreed an overarching plan for how workers can best be supported.
“Under the plans there will be funding for the retraining of steelworkers, support for businesses in the supply chain, and investment in regeneration projects in Port Talbot.
“As soon as possible the Transition Board will move onto the next phase of our work and spend our £100m budget where we know it is needed.”
The Tata Steel/Port Talbot Transition Board met for the fifth time yesterday when a local economic action plan was presented to its members. The Board agreed that supporting affected employees to find new well-paid jobs will be its first priority
It's also looking to support businesses affected in the supply chain and will have access to up to £100 million to invest in skills and regeneration programmes for the local area.
Responding to Tata Steel's announcement that they will press ahead with thousands of job losses, Stephen Kinnock - Labour MP for Aberavon, home of the Port Talbot steelworks - said: "As industry experts have laid out this week, Tata and the UK Government should be adopting the alternative Multi-Union Plan - a detailed, serious, robust and compelling proposal for the future of the Port Talbot steelworks.
"The Multi-Union Plan is the only realistic route to retaining our customer base, and it's also the only credible pathway to a strong, competitive and profitable future for steel-making in Port Talbot and throughout the downstream plants across Wales and the UK.
"By contrast, this Tata-Tory bad deal for steel would mean that £500 million of taxpayers’ money would be spent on making thousands of steelworkers redundant, and it would also make it extremely difficult to understand how the Welsh Secretary can possibly defend his claim that 'no-one will be left behind."