Tata Steel has turned down a trade union proposal to maintain the operational status of blast furnaces at Port Talbot Steelworks in Wales, putting approximately 3,000 jobs at risk, as reported by The Guardian.
The company is set to officially unveil its plan on Friday, outlining the closure of Port Talbot's blast furnaces. Instead, Tata Steel aims to implement electric arc furnaces dedicated to producing steel from recycled scrap, aligning with the broader shift towards eco-friendly steel production. The news was revealed during a crucial meeting with union representatives at a Taj hotel in London.
Business Today could not independently verify the claims made in the reports.
This decision follows the joint investment package announced by the UK government and Tata Steel in September, totalling £1.25 billion. The package included a substantial £500 million government grant explicitly designed to secure the ongoing operations at Port Talbot Steelworks, which stands as the largest steelworks facility in the country.
Significantly, Tata Steel's UK arm has consistently faced financial challenges over the past few quarters. In the July-September quarter of FY23-24, the steel giant reported a substantial loss of Rs 6,511 crore. This was primarily attributed to a significant impairment charge running into thousands of crores of rupees related to the Port Talbot units.
The potential closure of the Port Talbot furnaces would leave the one at Scunthorpe as the sole remaining blast furnace in the country. However, according to media reports, there are indications that it too may be headed for a similar fate. If these speculations materialise, the UK would stand as the only G20 nation unable to produce steel from raw materials.