UK's biggest steelworks in Port Talbot to cease production leading to thousands of job losses in South Wales
30 September 2024, 11:00
The UK's biggest steelworks in Port Talbot will cease production on Monday after more than 100 years leading to nearly 3,000 job losses across South Wales.
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Blast Furnace 4 is the final furnace operating at Tata Steel's plant and will be fully shut down at about 5pm on Monday.
Tata Steel is replacing the furnace with a greener electric arc furnace which will use UK-sourced scrap steel, but that will not be operational until 2028.
The British government is contributing £500m to the transition which will cost £1.25bn and lead to 2,800 job losses - almost 75% of the workforce.
Tata UK's chief executive Rajesh Nair admitted it would be a "difficult day" of "great emotion and reflection" in an email sent to staff.
Unions have battled for months to push back the furnace closure and reduce the number of redundancies.
Roy Rickhuss, general secretary of the Community Union which represents most steelworkers at Port Talbot, said it was an "incredibly sad and poignant day" for the industry.
He added: "It's also a moment of huge frustration - it simply didn't have to be this way.
"Last year, Community and GMB published a credible alternative plan for Port Talbot which would have ensured a fair transition to green steelmaking and prevented compulsory redundancies.
“Tata's decision to reject that plan will go down as an historic missed opportunity.”
In the email sent to staff last Friday, Mr Nair said: "Port Talbot has long been associated with the iron and steel industry and the closure of our heavy end operations will be a hugely significant and emotional day for employees - past and present - contractor partners, and the local community.
"While it will of course be a difficult day, it is a necessary step as we transition to a green steel future and secure the legacy of steelmaking at Port Talbot for future generations."
There are fears that in addition to the 2,800 immediate job losses, there will be a greater number of workers impacted in the wider supply chain.
The Welsh government announced on Monday that businesses impacted will be able to apply for funding to overcome "short-term challenges" during the transition.
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Secretary of state for Wales and chair of the Transition Board, Jo Stevens, said: "Businesses and workers that supply Tata have been feeling the impact of the changes at Port Talbot for months.
"That's why I announced this £13.5m fund within weeks of the new UK government coming into office, and have worked at pace with partners in Welsh government and the council to get applications open.
"I encourage affected businesses to come forward and check their eligibility for this financial support, as part of the wider support package we are putting in place. This government will back workers and businesses whatever happens."
The giant Port Talbot steelworks is not closing completely and will continue to operate hot and cold strip mills to roll steel slab imported from overseas.
The enormity of the significance remains though for a town built on steel that will no longer produce it with the government announcing earlier this month it will publish a strategy for the future of UK steel next spring.
