Tata Steel has confirmed plans to close blast furnaces at its plant in Port Talbot, South Wales, resulting in the loss of more than 3000 jobs.
Around 2,800 jobs will be cut over the next 18 months, with an additional 300 to come in the 18 months after that.
It was revealed on Thursday (January 18) that more than 3000 jobs were 'at risk' but on Friday (January 19) morning Tata steel confirmed the job losses as it revealed it would be closing the blast-furnaces and coke ovens at its Port Talbot plant.
Unions met with the company on Thursday after presenting alternative proposals aimed at saving jobs in Port Talbot.
But sources said Tata rejected the plan and were pressing ahead with proposals for a greener form of steelmaking to cut emissions and stem financial losses.
Tata Steel statement amid more than 3000 job losses
Tata Steel, in a statement on Friday (January 19), said: “Tata Steel today announced it will commence statutory consultation as part of its plan to transform and restructure its UK business.
“This plan is intended to reverse more than a decade of losses and transition from the legacy blast furnaces to a more sustainable, green steel business.
“The transformation would secure most of Tata Steel UK’s existing product capability and maintain the country’s self-sufficiency in steelmaking, while also reducing Tata Steel UK’s CO2 emissions by five million tonnes per year and overall UK country emissions by about 1.5%.”
Tata Steel's plans for Port Talbot plant
Under Tata's plans, Port Talbot’s two high-emission blast furnaces and coke ovens will close in a phased manner, with the first blast furnace closing about mid-2024 and the remaining heavy end assets winding down during the second half of this year.
The proposal also includes a wider restructuring of other locations and functions across the company, including the intended closure of its continuous annealing processing line (CAPL) in March 2025.
After talks with unions, Tata said it has agreed to continue to operate Port Talbot’s hot strip mill through the proposed transition period and in future.
Tata Steel said it will embark on a £1.25 billion investment in electric arc furnace technology in Port Talbot and asset upgrades, to secure long-term, high-quality production.
The proposed investment is supported by the UK Government, which has committed up to £500 million to enable the transformation.
Tata Steel plans to invest £750 million in the project, alongside funding for a “comprehensive support package” for affected employees, business restructuring and transition costs, as part of its long-term commitment to UK production.
Tata said its plans are subject to consultation but could be expected to result in over 3000 potential job losses across the business in the next three years.
Tata steel announcement "devastating" for local community
Wales Green Party leader Anthony Slaughter said: “This is devastating news for the local community and beyond.
“Wales knows only too well what happens when communities are abandoned by government and industries.
“We saw it with the coal industry and now it is happening again with the steel industry.
“Decarbonisation of industry is vital, but communities and people’s jobs must be protected.
“That means putting unions and workers at the heart of a just transition.”
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