Tata Steel is Port Talbot plant is preparing for the shutdown of its final blast furnace, scheduled for Monday. This closure will result in significant job losses and a major impact on south Wales communities. The shutdown of blast furnace 4 follows the closure of blast furnace 5 in July. Nearly 2,000 jobs will be lost, and the wider community will also feel the effects.
Tata Steel is shifting towards greener steel production by constructing a £1.25bn electric arc furnace. This new furnace will produce steel by melting scrap metal and is set to be operational by 2027. The electric arc furnace, however, will create fewer jobs, with about 500 positions during construction. The transition means Port Talbot will no longer produce “virgin” steel from iron ore.
British Steel’s Scunthorpe plant is also facing closures, with 2,500 jobs at risk. If these closures proceed, the UK will be the only G20 nation unable to produce steel from a blast furnace. This would force the country to rely on imports for vital sectors like aerospace, rail, and automotive industries.
The UK government has stepped in to support the green transition at Port Talbot, providing £500m towards the electric arc furnace. Tata Steel, the plant’s Indian owner, will invest £750m. Despite this investment, unions have expressed frustration, calling Tata’s decision to reject their alternative plan a “missed opportunity.” The unions’ plan aimed to keep one blast furnace operational until 2032, reducing job losses.
Community Union’s general secretary, Roy Rickhuss, described the furnace shutdown as a “sad and poignant day” for the British steel industry. He emphasized that the decision didn’t have to result in such significant job losses.
Port Talbot’s steelworks have long been the town’s largest private employer. The loss of nearly 2,000 jobs will ripple through the local economy. For every steelworker’s job, three to four jobs are supported in the community. Many workers have applied for voluntary redundancy, receiving enhanced packages and opportunities to retrain.
Jo Stevens, the secretary of state for Wales, announced that £13.5m had already been released to support affected workers and businesses. The funds will help workers retrain and assist businesses in diversifying into new markets.
The UK government is expected to publish a new steel sector strategy by spring 2025, aiming to support the future of the industry.