UK’s Biggest Steel Factory Closes After 100 Years | Job Losses & Future Plans
In an email, Tata UK’s CEO told staff it would be a “hard and emotional day” for everyone.
The UK’s largest steel factory will stop making steel today after over 100 years, causing thousands of job losses in South Wales. Around 5 p.m., the last working furnace at Tata Steel’s Port Talbot plant, Blast Furnace 4, will be completely shut down. The final batch of steel was produced on Monday evening.
In an email seen by Sky News, Tata UK’s CEO, Rajesh Nair, acknowledged that this would be a “hard day filled with emotion and reflection.”
New Green Furnace Coming, but Jobs Are at Risk
Tata Steel plans to use recycled UK steel to replace the old furnace with a more environmentally friendly electric arc furnace. However, this new furnace won’t be ready until 2028.
This transition costs £1.25 billion, with the UK government covering £500 million. Unfortunately, this change will result in nearly 3,000 job losses, about 75% of the plant’s workforce.
Union Fought to Save Jobs
Unions have been trying for months to delay the furnace closure and reduce the number of job cuts. Roy Rickhuss, the leader of the Community Union, representing most of the plant workers, said it was a “very sad and emotional day” for the British steel industry.
He added, “It’s also incredibly frustrating – it didn’t have to end like this.”
Last year, the unions and GMB presented an alternative plan for Port Talbot that would have helped switch to greener steel production while saving jobs. But Tata Steel rejected the plan, which Rickhuss said was a “missed opportunity.”
Emotional Farewell for Port Talbot
In another email sent last Friday, Rajesh Nair mentioned that Port Talbot has long been closely connected with the iron and steel industry. He said the closure would be a highly emotional moment for current and former workers, local businesses, and the community.
While he admitted it would be a difficult day, Nair said it was a necessary move to transition to a greener future and ensure steelmaking continues at Port Talbot for future generations.
More Job Losses Expected in Supply Chain
Aside from the nearly 3,000 job losses at the plant, many fear that more jobs could be lost in the businesses that supply goods and services to Tata Steel.
Today, the Welsh government announced that companies affected by the closure could apply for funding to help them through the difficult transition period.
Support for Affected Businesses
Jo Stevens, the Secretary of State for Wales and chair of the Transition Board said businesses and workers who supply Tata Steel have been feeling the effects of the changes for months. She announced a £13.5 million fund to support and help these businesses overcome these challenging times.
Stevens urged impacted businesses to check if they qualify for financial aid and emphasized that the government will support workers and companies no matter what happens.
Port Talbot Will Stay Open for Some Operations
The Port Talbot steel plant won’t close entirely. It will keep running its hot and cold strip mills, which turn steel slabs imported from other countries into usable products.
Even though the factory will continue in some capacity, today is a historic moment for the UK’s industrial landscape and Port Talbot, built around steel production.
Future Plans for the UK Steel Industry
Earlier this month, the government announced that it would release a plan for the future of the UK steel industry in the spring.
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