Latest news with #AlasdairMcDiarmid
ITV News
14-07-2025
- Business
- ITV News
Work to begin on £1.25bn electric arc furnace in Port Talbot with first spades in the ground
Tata Steel will mark the start of its move towards greener steel production at Port Talbot' s steelworks on Monday. The steel giant is progressing with its construction of a £1.25bn electric arc furnace (EAF) in the town, which is set to be up and running by the end of 2027. Government ministers will join Tata bosses at a groundbreaking event at the Port Talbot site later today (Monday 14th July) to mark the beginning of the furnace's construction. Natarajan Chandrasekaran, chairman of Tata Steel and the Tata Group, described the moment as an 'important day for Tata Group, Tata Steel and for the UK'.He added: 'At Port Talbot, we are building the foundations of a cleaner, greener future, supporting jobs, driving innovation and demonstrating our commitment to responsible industry leadership.' The electric arc furnace (EAF) will be built on the site of the Port Talbot steelworks, in the area of the existing Basic Oxygen Steelmaking (BOS) plant. It is thought that it will be one of the largest furnaces of its kind in the world, melting mostly scrap steel to produce 3 million tonnes of steel per year. Tata insists the move will cut Port Talbot's emissions by 90%, while ensuring the future of steel production in the town. It comes after Tata Steel closed the plant's last blast furnace in September last year. The move put over 2,800 jobs at risk and brought traditional steel-making to an end in the town. Around 2,500 workers are thought to have left the business by March 2025, with many having already left by the end of last year.A further 300 roles are set to be affected in the next three years. The UK Government has backed plans for the EAF with a £500 million investment, saying that 5,000 UK jobs have been secured as a result of its of the groundbreaking event, Community Assistant General Secretary Alasdair McDiarmid said: "This bittersweet day is a consequence of the devastating closure of the blast furnaces, but importantly a future for Port Talbot steelmaking is being secured. "The workforce needs the Electric Arc Furnace project to be both a success and a turning point, and we look forward to playing our part to get the new furnace up and running." A new Public Health Wales survey highlighted that communities in Neath Port Talbot have been rallying round to support each other after the job losses at the steelworks. The survey found that 74% of households are expecting to experience some form of financial pressure in the next six months, specifically with energy bills (56%), food (44%) and housing (26%). Neath Port Talbot Council Leader Cllr Steve Hunt said the Tata Steel / Port Talbot Transition Board was established in response to the job losses, which has been providing £100 million of funding to support workers, businesses, and affected communities. He added: "On behalf of the Transition Board, Neath Port Talbot Council is delivering targeted support to people and businesses both within Neath Port Talbot and further afield. For example, the £19.8 million Employment and Skills Fund set up by the Transition Board to help affected individuals secure future employment."Ahead of the groundbreaking ceremony, Business Secretary Jonathan Reynolds said: 'This is our Industrial Strategy in action and is great news for Welsh steelmaking backing this crucial Welsh industry, which will give certainty to local communities and thousands of local jobs for years to come. Secretary of State for Wales Jo Stevens said that the start of the construction "realises the promise we made to the community, while the development of floating offshore wind, plans for a Celtic Freeport and millions more for local regeneration all mean that Port Talbot has a bright future.' First Minister Eluned Morgan said, 'Seeing spades in the ground today provides a tangible sign of Tata's intention to continue producing steel in the area, an industry which has provided quality jobs to local people for generations. 'The start of the construction phase is good news for Port Talbot and neighbouring communities, and I'm especially pleased that Tata has committed to employing local contractors and local workers where it can.'Luke Fletcher MS, Plaid Cymru's Economy spokesperson and Member of the Senedd for South Wales West said the news is "welcome", but said" we cannot forget the opportunity that has been lost here to safeguard over 2000 primary steel making jobs for the future. 'Labour has promised a lot to the communities in and around Port Talbot, it's vital that those promises are realised now.'
Yahoo
28-03-2025
- Business
- Yahoo
Calls for steel nationalisation if deal not agreed
A union has called for the government to nationalise British Steel if a deal cannot be reached with its Chinese owners to safeguard thousands of jobs. British Steel launched a consultation on the proposed closure of its two blast furnaces at Scunthorpe, putting up to 2,700 jobs at risk, saying they were "no longer financially sustainable". Industry body UK Steel warned the ending of production in Scunthorpe would mean the UK would lose vital steelmaking capabilities, after Business Secretary Jonathan Reynolds made an offer on Monday to owners Jingye, thought to be worth £500m. Community said: "If a deal can't be reached with Jingye, then the government must move to nationalise the business." It followed the collapse of talks between Jingye and the government over a support package for the company as it looks to secure a sustainable future by decarbonising. Alasdair McDiarmid, assistant general secretary of Community, said: "British Steel is a business of huge strategic importance, not just to the local economy and the wider steel sector, but to the country as a whole. "There is now a serious risk that the UK will become the only G7 country unable to produce its own virgin steel." "This would be a totally unacceptable situation at any time, let alone in the current era of global insecurity and volatility." Mr McDiarmid's call was echoed by a number of MPs in a House of Commons debate on Thursday. Martin Vickers, the Conservative MP for Brigg and Immingham, said: "Although I would not want to advocate this, will the government consider nationalisation of the industry as a last resort?" He told the BBC: "Though I'm a free marketeer I do recognise... we are not going to maintain a steel industry in the UK without government support now. "Whether that support comes via nationalisation or a subsidy to a private company, it matters not." British Steel was expecting a £1bn injection of government money to keep the business going, the BBC understands. Zengwei An, the company's chief executive, said the launch of the consultation process was "a necessary decision given the hugely challenging circumstances the business faces", with the imposition of tariffs and higher environmental costs. The consultation will look at the options of ending operations by early June, in September, or at a later date. UK Steel director general Gareth Stace described the potential closure as a "gut punch to UK steelmaking". "All options should be on the table, and we need a secure future for our steel industry," he said. "The end of steelmaking at British Steel would mean we have a major gap in capacity to meet the future demand of the nation and will be an irreparable break in the armour of national security." In the Commons on Thursday, Industry Minister Sarah Jones did not rule out nationalisation as an option, but the government's "preferred approach, by far, is that British Steel come back to the table with us". Listen to highlights from Lincolnshire on BBC Sounds, watch the latest episode of Look North or tell us about a story you think we should be covering here. Thousands of jobs at risk as British Steel threatens closure 'Scunthorpe could become a disaster town' British Steel Community UK Steel
The Independent
28-03-2025
- Business
- The Independent
Government urged to nationalise British Steel if deal cannot be reached
The Government is being urged to nationalise British Steel if a deal cannot be reached to secure the business. Chinese owners Jingye announced on Thursday it was launching a consultation on the proposed closure of blast furnaces at its Scunthorpe plant, raising fears of thousands of job losses. The company has reportedly rejected a £500 million Government offer to help its transition to a greener form of steel production with a new electric arc furnace. Closure would mean the end of steelmaking in Scunthorpe after 160 years of production. Industry body UK Steel warned that the ending of steel production in Scunthorpe would mean the UK loses vital steelmaking capabilities in rail, heavy sections, and light sections, critical to transport, infrastructure, and construction – leaving customers dependent on international supplies. The Community union's assistant general secretary Alasdair McDiarmid said: 'British Steel is a business of huge strategic importance, not just to the local economy and the wider steel sector, but to the country as a whole. 'There is now a serious risk that the UK will become the only G7 country unable to produce its own virgin steel. This would be a totally unacceptable situation at any time, let alone in the current era of global insecurity and volatility. 'If a deal can't be reached with Jingye, then the government must move to nationalise the business. This government cannot afford to renege on the commitments it has made to steelworkers, and it is unthinkable that they would allow Britain's primary steelmaking capacity to die on their watch.' UK Steel director general Gareth Stace said: 'The proposal to close iron and steelmaking at Scunthorpe marks a heartbreaking and pivotal moment for our sector. It is a shocking blow to the 3,400 workers, our sector and to the whole community in Scunthorpe. This gut punch to UK steelmaking will have a profound impact, felt throughout the British economy. 'All options should be on the table, and we need a secure future for our steel industry. The end of steelmaking at British Steel would mean we have a major gap in capacity to meet the future demand of the nation and will be an irreparable break in the armour of national security. 'This devastating decision will cause untold disruption and damage to our supply chains, threatening jobs, businesses and the nation's economic strengths. The steel industry is officially in a crisis,' Business and Trade Secretary Jonathan Reynolds said: 'I know this will be a deeply worrying time for staff and, while this is British Steel's decision, we will continue working tirelessly to reach an agreement with the company's owners to secure its future and protect taxpayers' money. 'We've been clear there's a bright future for steelmaking in the UK. We've committed up to £2.5 billion to rebuild the sector and will soon publish a Plan for Steel setting out how we can achieve a sustainable future for the workforce, industry and local communities.'
