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Pembrokeshire Herald
14-07-2025
- Business
- Pembrokeshire Herald
Port Talbot steelworks enters green era – but thousands already out of work
5,000 jobs secured as electric arc furnace construction begins, but unions call transition 'bittersweet' WORK has officially begun on a £500 million green steel project in Port Talbot, marking a new chapter for the UK's largest steelworks — but one that arrives after the loss of thousands of jobs and amid ongoing uncertainty for former workers. On Monday (July 14), Business Secretary Jonathan Reynolds, Welsh Secretary Jo Stevens, and Tata Group Chairman N. Chandrasekaran broke ground on the construction of a new electric arc furnace (EAF), which will form the centrepiece of Tata Steel's transition to low-carbon steelmaking. The UK Government says the new facility will secure 5,000 jobs, reduce carbon emissions at the site by up to 90%, and place Welsh industry at the heart of a national push toward net zero. Thousands already made redundant While ministers praised the milestone as a sign of progress, many in the Port Talbot community are still grappling with the human cost of the transition. In January 2024, Tata Steel announced it would shut down both blast furnaces, citing unsustainable losses and the need to modernise. The company confirmed that up to 2,800 jobs would be cut across the UK, with around 2,500 of those losses in Port Talbot. Since then, hundreds of workers have already left, either through voluntary redundancy, early retirement, or compulsory lay-offs, with the first blast furnace already closed by autumn 2024. Although the UK Government pledged £80 million in transition support, including retraining and regeneration funding, unions and some MPs say many workers have been left behind. Union: 'Bittersweet day for Port Talbot' The Community Union, which represents many of the affected steelworkers, described the groundbreaking as 'bittersweet.' Assistant General Secretary Alasdair McDiarmid said: 'This is a consequence of the devastating closure of the blast furnaces, but importantly a future for Port Talbot steelmaking is being secured. 'Today should represent the first step towards rebuilding our steel industry and creating new high-quality jobs. Going forward, we must see further investment to grow the business — both in Port Talbot and at crucial downstream sites.' The union also emphasised that Electric Arc Furnaces require far fewer workers than traditional blast furnaces, and warned that unless the government steps up investment and industrial planning, many skilled workers could be lost from the industry for good. Ministers promise long-term support Speaking at the event, Business Secretary Jonathan Reynolds said: 'This is our Industrial Strategy in action. We're backing Welsh steelmaking and securing thousands of jobs for the future. This government is committed to a bright future for our steel industry, which is why we provided £500 million of funding to make this project possible.' Welsh Secretary Jo Stevens added: 'The construction of Tata's new furnace realises the promise we made to the community. Our Steel Strategy will deliver up to £2.5 billion of investment to rebuild the UK industry, maintain jobs and drive growth.' Tata Group Chairman N. Chandrasekaran said the day marked 'the beginning of a new era' for the company in the UK. '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,' he said. Council welcomes but acknowledges uncertainty Leader of Neath Port Talbot Council, Cllr Steve Hunt, also welcomed the development, which received planning permission from the local authority earlier this year. 'This is the start of a new era for a town shaped by steelmaking,' he said. 'We know change brings uncertainty, but this is a significant and welcome milestone as our communities adjust to the future shape of steelmaking in Port Talbot.' Commenting, Welsh Liberal Democrat Westminster Spokesperson David Chadwick MP said: 'Ensuring the electric arc furnace is completed on time is absolutely essential to safeguard as many skilled jobs as possible. 'However, the people of Port Talbot won't easily forget, or forgive, the Government's failure to step in and protect local jobs, as they did in Scunthorpe. That disparity has rightly been seen as a betrayal of our industrial communities.' What comes next The Electric Arc Furnace is expected to be operational within a few years. Meanwhile, Industry Minister Sarah Jones chaired a meeting of the UK Steel Council in Cardiff on Monday to discuss the wider Steel Strategy — including procurement reform, energy cost relief for producers, and stronger safeguards against steel dumping. As the dust settles on the groundbreaking ceremony, Port Talbot begins the difficult task of balancing hope for a cleaner, more sustainable future with the legacy of industrial decline and the livelihoods already lost.
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Business Standard
14-07-2025
- Business
- Business Standard
Tata Steel begins Port Talbot EAF project as UK backs £500-mn investment
Port Talbot in South Wales – Tata Steel's primary steelmaking site in the UK – is set for a new beginning as the company breaks ground on an electric arc furnace (EAF), signalling a shift towards low-carbon steel production. To mark this milestone for Tata Steel and British steelmaking, Tata Group Chairman Natarajan Chandrasekaran will be joined by UK government ministers at a groundbreaking event scheduled for later on Monday. Chandrasekaran will be flanked by Tata Steel Chief Executive Officer and Managing Director T V Narendran, and Tata Steel UK Chief Executive Officer Rajesh Nair, as they officially break the ground with spades, launching the construction of the UK's largest low-carbon steelmaking facility and marking a shift away from traditional blast furnaces. Government support and job impact The development is part of a £1.25-billion transformation towards low-carbon steelmaking, supported by a £500-million investment from the UK government. The transition secures 5,000 jobs across Tata Steel UK, even as the closure of heavy-end assets is expected to impact 2,500 positions. Leadership emphasises sustainability and partnership In a statement ahead of the ceremony, Chandrasekaran said: 'This is an important day for Tata Group, Tata Steel and for the UK. Today's groundbreaking marks not just the beginning of a new electric arc furnace, but a new era for sustainable manufacturing in Britain.' '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. This project is also part of Tata Group's wider investment in the UK, across steel, automotive, and technology among others, which reflects our deep and enduring partnership with this country,' he added. UK government hails strategic shift in steelmaking 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.' 'This government is committed to a bright future for our steel industry, which is why we provided £500 million of funding to make this project possible,' he added. Secretary of State for Wales Jo Stevens said: 'The UK government acted decisively to ensure that steelmaking in Port Talbot will continue for generations to come, backing Tata Steel with £500 million to secure its future in the town, along with £80 million to support workers and the wider community.' 'Our Steel Strategy will also deliver £2.5 billion of investment to rebuild the UK industry, maintain jobs and drive growth,' Stevens added. First Minister Eluned Morgan said: '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.' Mixed reactions as union calls day 'bittersweet' Steelworkers' union Community described the development as a 'bittersweet' day. In a statement, 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.' Broader decarbonisation strategy and supply chain As part of Tata Steel UK's broader decarbonisation strategy, the project will also include new ladle metallurgy facilities, infrastructure upgrades, and collaborations with technology providers such as Tenova, ABB, and Clecim. The construction is being led by main contractor Robert McAlpine, supported by a strong regional supply chain that includes Darlow Lloyd & Sons, Mii, Skelton Thomas, Wernick Buildings, Andrew Scott Ltd, and Systems Group, the company said.
Business News Wales
26-06-2025
- Business
- Business News Wales
UK Government Seeks Views on Further Trade Protections for Steel
Steel producers, consumers, and unions are being asked to shape the UK's future trade approach for steel. Safeguard measures are in place temporarily to address sudden import surges and help industry adapt to new trading environments. But the UK Government says that the challenges now facing the steel industry demand longer-term solutions. The current UK steel safeguard measure ends in June 2026 and cannot be extended. The views from industry will help shape new future-ready trade measures that will protect UK businesses, the UK Government said. Business and Trade Secretary Jonathan Reynolds said: 'We know this is a tough time for steel producers which is why this Government is using every tool available to ensure the long-term success of our vital steel industry, protect jobs and deliver on our Plan for Change. 'Thanks to our deal with the United States, all Section 232 tariffs on UK steel will be removed—while producers in other countries still face tariffs of up to 50%. But we're not stopping there. 'We will not sit by idly while cheap imports threaten to undercut UK industry, so we are inviting industry to shape the next phase of our trade defences so we can provide robust support and ensure a fair and competitive market.' The six-week Call for Evidence comes in addition to further government action to support industry amid global challenges. This includes securing a trade deal with the US to remove tariffs on steel products and protect jobs. It also includes announcing the upcoming steel strategy, which will establish a long-term vision for the sector and help build resilient supply chains. These efforts follow the launch of both the Trade and Industrial Strategy, which set out broader plans to support key industries, including steel. The UK Government said the Call for Evidence was a key step in its wider commitment to rebuilding the steel sector, alongside interventions such as the £500 million grant securing the transformation of Port Talbot steelworks, the £2.5 billion investment pledged to rebuild the sector, the action taken to safeguard British Steel's blast furnaces at Scunthorpe, and the forthcoming Steel Strategy. UK Steel Director General Gareth Stace said: 'It is welcome news that the Government is developing a new steel trade defence mechanism. 'With growing global steel overcapacity and rising trade diversion, Government must deliver a new trade defence system to provide industry certainty before steel safeguards expire in June 2026. 'UK Steel looks forward to working with Government to design an effective framework that will help to level the playing field on international trade and provide the market stability needed to draw investment in the UK steel sector.' Community Assistant General Secretary Alasdair McDiarmid said: 'Trade protections are a vital bastion for our steel industry in the face of global overcapacity, rising protectionism and unfair trade. They provide essential security, and safeguard thousands of jobs across the UK steel industry and its extensive supply chains. 'We welcome the UK Government's early engagement with the sector to shape our future steel protections and ensure that a cliff-edge scenario next year is prevented. 'This government has demonstrated its steadfast support for our steel industry, and we will continue to work with them to secure the long-term future of the sector.'
The Independent
16-02-2025
- Business
- The Independent
Government announces multibillion-pound plans to boost UK steel industry
The Government has announced multibillion-pound plans to boost the UK steel industry and help secure its future. A consultation was launched aimed at looking at long-term issues facing the sector such as high electricity costs, unfair trading practices, and scrap metal recycling. In the face of US President Donald Trump's plans for tariffs on products including steel, the Government said up to £2.5 billion will be put towards supporting the UK steel industry. Help will be available through the National Wealth Fund which ministers said could benefit regions including Scunthorpe, Rotherham, Redcar, Yorkshire and Scotland. Funds will be spent on initiatives aimed at giving steel a long future such as electric arc furnaces. The announcement follows the Government's go ahead for expansion at Heathrow Airport which will require 400,000 tonnes of steel. The industry has faced a number of challenges in recent years, including a switch to a greener method of production at the huge plant in Port Talbot, South Wales, with the loss of jobs. Business Secretary Jonathan Reynolds said: 'The UK steel industry has a long-term future under this Government. We said that during the election, and we are delivering on it now. 'The deal announced by Heathrow announced this week will secure a strong industry pipeline for years to come – and we are putting the full weight of Whitehall behind the industry to build on this success. 'Britain is open for business, and this Government has committed up to £2.5 billion to the future of steel to protect our industrial heartlands, maintain jobs, and drive growth as part of our Plan for Change.' Gareth Stace, director general of UK Steel, said: 'Developing the Steel Strategy must be a collaborative process, and the consultation is an open invitation for all stakeholders to help shape the future of UK steel. 'The Government's commitment to our steel sector is both vital and welcome. A robust, bold, and ambitious Steel Strategy has the power to reverse the sector's decline, particularly as we face increasing competition from imports benefiting from more favourable business conditions. 'By setting out a clear business plan and roadmap for investment, the Government can secure a brighter future for our industry, safeguard jobs, and support steelworkers and their families.' Unions welcomed today's announcement. Community general secretary Roy Rickhuss said: 'After a long era of neglect under the previous government, we welcome the Government's firm commitment to our steel industry. It is the first time in decades that a government has made a positive commitment to invest in the UK steel industry. It is essential that all such investment is clearly linked to rock solid job guarantees Sharon Graham, Unite general secretary 'The new green paper sets out some of the main challenges and opportunities our steel sector will face over the years ahead, posing important questions on how we can secure and boost existing capacity, stimulate demand for UK steel, and deal with longstanding problems like industrial energy prices.' Andy Prendergast, GMB national secretary, said: 'After years of dithering, today's plan provides desperately needed funding for our once proud, now beleaguered steel industry. 'As the world becomes more volatile, primary domestic steel making capacity is vital for both our economy and domestic security.' Unite general secretary Sharon Graham said: 'The launching of the steel strategy is a critical landmark for a foundation industry, whose success is essential to the wellbeing of our economy and our national security. 'It is the first time in decades that a government has made a positive commitment to invest in the UK steel industry. 'It is essential that all such investment is clearly linked to rock solid job guarantees.' TUC general secretary Paul Nowak said: 'The Government is right to intervene to safeguard the future of UK steel-making. 'Steel is a foundation industry and is vital for jobs and our economy. 'If we want to make more products here in Britain and compete globally we need to be able to produce steel here.' Shadow business secretary Andrew Griffith said: 'We look forward to seeing the details of this plan. A clear part must be steps to reduce the cost of energy which is placing an intolerable strain on UK steel. 'Meanwhile the steel sector faces uncertainty due to tariffs which the government has been entirely silent on when instead they should be talking to the US, our closet trading partner.'
Yahoo
16-02-2025
- Business
- Yahoo
Government announces multibillion-pound plans to boost UK steel industry
The Government has announced multibillion-pound plans to boost the UK steel industry and help secure its future. A consultation was launched aimed at looking at long-term issues facing the sector such as high electricity costs, unfair trading practices, and scrap metal recycling. In the face of US President Donald Trump's plans for tariffs on products including steel, the Government said up to £2.5 billion will be put towards supporting the UK steel industry. Help will be available through the National Wealth Fund which ministers said could benefit regions including Scunthorpe, Rotherham, Redcar, Yorkshire and Scotland. Funds will be spent on initiatives aimed at giving steel a long future such as electric arc furnaces. The announcement follows the Government's go ahead for expansion at Heathrow Airport which will require 400,000 tonnes of steel. The industry has faced a number of challenges in recent years, including a switch to a greener method of production at the huge plant in Port Talbot, South Wales, with the loss of jobs. Business Secretary Jonathan Reynolds said: 'The UK steel industry has a long-term future under this Government. We said that during the election, and we are delivering on it now. 'The deal announced by Heathrow announced this week will secure a strong industry pipeline for years to come – and we are putting the full weight of Whitehall behind the industry to build on this success. 'Britain is open for business, and this Government has committed up to £2.5 billion to the future of steel to protect our industrial heartlands, maintain jobs, and drive growth as part of our Plan for Change.' Gareth Stace, director general of UK Steel, said: 'Developing the Steel Strategy must be a collaborative process, and the consultation is an open invitation for all stakeholders to help shape the future of UK steel. 'The Government's commitment to our steel sector is both vital and welcome. A robust, bold, and ambitious Steel Strategy has the power to reverse the sector's decline, particularly as we face increasing competition from imports benefiting from more favourable business conditions. 'By setting out a clear business plan and roadmap for investment, the Government can secure a brighter future for our industry, safeguard jobs, and support steelworkers and their families.' Unions welcomed today's announcement. Community general secretary Roy Rickhuss said: 'After a long era of neglect under the previous government, we welcome the Government's firm commitment to our steel industry. 'The new green paper sets out some of the main challenges and opportunities our steel sector will face over the years ahead, posing important questions on how we can secure and boost existing capacity, stimulate demand for UK steel, and deal with longstanding problems like industrial energy prices.' Andy Prendergast, GMB national secretary, said: 'After years of dithering, today's plan provides desperately needed funding for our once proud, now beleaguered steel industry. 'As the world becomes more volatile, primary domestic steel making capacity is vital for both our economy and domestic security.' Unite general secretary Sharon Graham said: 'The launching of the steel strategy is a critical landmark for a foundation industry, whose success is essential to the wellbeing of our economy and our national security. 'It is the first time in decades that a government has made a positive commitment to invest in the UK steel industry. 'It is essential that all such investment is clearly linked to rock solid job guarantees.' TUC general secretary Paul Nowak said: 'The Government is right to intervene to safeguard the future of UK steel-making. 'Steel is a foundation industry and is vital for jobs and our economy. 'If we want to make more products here in Britain and compete globally we need to be able to produce steel here.' Shadow business secretary Andrew Griffith said: 'We look forward to seeing the details of this plan. A clear part must be steps to reduce the cost of energy which is placing an intolerable strain on UK steel. 'Meanwhile the steel sector faces uncertainty due to tariffs which the government has been entirely silent on when instead they should be talking to the US, our closet trading partner.' Sign in to access your portfolio
