More than 2,800 jobs are at risk in the country’s biggest steel works station: Tata Steel.
Back in September last year Tata steel have confirmed that it had secured taxpayer money to support the Port Talbot plant in South Wales. The aim is to make the factory greener and cheaper through improved equipment and less staff.
Sources have confirmed that the Indian-based giant will go through with the plans to close it’s two furnaces.
As it stands, the steelworks plant has more than 4,000 active staff members, 2,800 of which will be made redundant by March next year.
Port Talbot and its workforces currently account for over 12% of the costal town’s jobs. Many people came forward to express their worries for the workers and their families.
Numerous unions have met on Thursday, proposing suggestions to the steel works company. PA news have confirmed that Tata has rejected the plans. Their response is that keeping the furnaces running like they are currently is “financially unaffordable”
The Indian-based company is planning to replace its two main electric arc furnaces with
the intent to reduce emissions and costs. The company stated that they will close them “around-mid-2024”.
The new electric furnaces are projected to cost around £1.25bn. In which £500m will be invested by the UK government. The company will have to pay the remaining £750m.
Tata Steel’s chief executive office and managing director, TV Narendran, has come forward to say that the plan is “difficult, but we believe it is the right one.”
Narendran thinks that the company needed to “transform at pace to build a sustainable business in the UK for the long term.”
“Our ambitious plan includes the largest capital expenditure in UK steel production in more than a decade, guaranteeing long-term, high-quality steel production in the UK and transforming the Port Talbot facility into one of Europe’s premier centres for green steelmaking.”
Narendran also revealed that the company will offer a “comprehensive support package to mitigate the impact of any anticipated job losses, including helping employees to retrain and find new jobs”.
The support packaged is said to be worth £130m, and include things such as skill training, community programmes and job-seeking opportunities.
General secretary of steelworkers, Roy Rickhuss, says that the decision of the Indian-owned firm is “unacceptable”.
“The decision to plough ahead with the bad deal for steel first announced in September would be devastating for Port Talbot and the wider steel industry,” He said.
“We will now consult with our members and all options are on the table going forward.”
Rishi Sunak also added to the case: “what I can tell you is we are absolutely committed to steelmaking in the UK and that’s why the government provided £500bn to support Tata”.
He also adds that the best alternative to this would be the entirety of the plant to close down, which would lead to more than 8,000 job losses.