The UK government has announced a ‘new and improved deal’ with Tata Steel, consisting of a £500m grant to the company, which will contribute to the cost of building an electric furnace in Port Talbot.
According to a report by the BBC, about 2,500 workers are set to be made redundant, with a further 300 expected to be made redundant in future.
Jonathan Reynolds, British secretary of state for business and trade acknowledged the package ‘falls short of what would be my ideal’, but said workers now have more protection, with assurances from Tata on future jobs and investment. The electric arc furnace will melt scrap steel or iron to produce steel, significantly reducing emissions compared to the previous method of blast furnace steelmaking.
Tata has agreed to look at future investment opportunities, thought to include the potential for wind turbines to be made in south Wales at a new plate mill.
The Community and GMB trade unions called the plan ‘not something to celebrate’ but ‘better than the devastating plan announced by Tata and the [Conservative party] back in September 2023’.
"We know that a cleaner, greener future for UK steelmaking is vital to the industry’s long-term economic stability."
Jonathan Reynolds, secretary of state for business and trade
Reynolds added that the agreement gives ‘hope for the future of steelmaking in south Wales’. "We know that a cleaner, greener future for UK steelmaking is vital to the industry’s long-term economic stability," he said.
'We have a government that totally understands and sees the needs of the sector, and we now have evidence of that understanding.''
Gareth Stace, director general of UK Steel
Speaking at the UK Metals Expo, Gareth Stace, director general of UK Steel, stated that the announcement 'marks the biggest investment that the UK steel sector has seen in decades.' ''We have a government that totally understands and sees the needs of the sector, and we now have evidence of that understanding,'' Stace concluded.
Source: BBC