Three thousand jobs at Port Talbot steel plant will be cut after Tata presses ahead with plans to close blast furnaces
18 January 2024, 15:51 | Updated: 19 January 2024, 01:01
Tata is to press ahead with plans to close blast furnaces at its plant in Port Talbot, south Wales, threatening the loss of around 3,000 jobs.
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LBC understands the cuts will be announced by Tata steel on Friday after company bosses rejected an alternative plan. Tata is pressing ahead with plans for a greener form of steelmaking to cut emissions and stem financial losses
Sources say the company is set to adopt one small part of the proposal put forward by unions, which saves around 200/300 jobs from Tata's initial plans.
Read More: What is green steel and why are there potential job losses at Tata?
Both blast furnaces at Port Talbot are set to be closed down with one source telling LBC it marks 'the end of Port Talbot as we know it.'
Unions will consult their members on how to respond to job losses, with industrial action not being ruled out.
Sources said Tata accepted a union plea to keep the hot strip mill open over a transition period, supporting hundreds more jobs.
A Tata Steel spokesman said ahead of the meeting: "We have recently announced a joint agreement between Tata Steel and UK Government for a proposal to invest in state-of-the art Electric Arc Furnace steelmaking in Port Talbot.
"We are committed to meaningful information sharing and consultation with our trade union partners about the plan to develop sustainable steelmaking in the UK and to find solutions for concerns they may have.
"While those discussions are ongoing it would not be appropriate to comment further."
Welsh Liberal Democrat leader Jane Dodds said: "I am deeply disappointed to hear that Tata Steel will be closing their remaining blast furnaces in the UK, something which could have a devastating impact on communities across the country, particularly in Port Talbot, where the local economy is reliant on the nearby steel plant.
"The UK Conservative Government, through their inability to support investment into UK steel, has failed towns like Port Talbot across the country.
"If the UK Government was willing to implement a real and sustainable industrial strategy that protected jobs whilst simultaneously supporting the transition to low carbon sectors, we wouldn't find ourselves in this mess.
"But now we are here, on the verge of witnessing the destruction of Port Talbot.
"The Prime Minister and his cabinet will never know what it's like for the thousands of workers at risk of losing their jobs, they will never know the constant worrying and anxiety that comes with the prospect of losing one's livelihood."
Stephen Kinnock, Labour MP for Aberavon, home of the Port Talbot steelworks, said: "Tata's decision to follow the Conservative business model of managed decline for British steelmaking will cause the job losses of 3,000 hard-working men and women, each of whom have dedicated their lives to an industry which underpins Britain's automotive industry, railways, defence sector, consumer goods, construction, wind turbines and so much more.
"Global demand for steel is actually growing, but by pursuing a narrow electric arc furnace-only model, Tata Steel will be unable to seize the commercial opportunities of the future, while at the same time leaving Britain more dependent on imported steel from countries whose governments won't always have Britain's best interests at heart."
The National Trade Union Steel Coordinating Committee said in a statement: "The steel unions met today with a senior Tata Steel delegation led by Koushik Chatterjee, and the company responded to the multi-union plan laying out an alternative decarbonisation strategy for Tata Steel UK.
"We will be communicating the outcomes of the meeting to our members in the first instance, as is right and proper, and we will make a further more detailed public statement in due course."
A UK Government spokesperson said: "We are determined to secure a sustainable and competitive future for the UK steel sector, which is why we have committed £500 million of UK Government support that will transform the site and protect thousands of jobs - both in Port Talbot and throughout the supply chain.
"Engagement with trade unions is rightly a company-led process. There is a broad range of support for staff affected, including a dedicated Transition Board backed by £80 million funding from UK Government and £20 million from Tata Steel.
"Chaired by the Welsh Secretary with ministerial representation from the Welsh Government, the board will support both affected employees and the local economy."
