Indian steelmaker Tata Steel has decided to cease operations of the coke ovens at its Port Talbot plant in Wales, UK, the company said in a regulatory filing on Tuesday, March 19. The company said the decision followed a deterioration of operational stability. Tata Steel UK will increase imports of coke to offset the impact of the coke oven closures, it said.
The development is also a part of Tata Steel’s transition from emission-intensive blast furnace technology to low-carbon steelmaking through the electric arc furnace route.
On January 19, Tata Steel announced the closure of Port Talbot’s two blast furnaces, following consideration of an alternative proposal from the UK trade unions’ representative body and their advisor.
The company agreed to adopt parts of it but said that continued blast furnace operation was neither feasible nor affordable. The transition is expected to result in up to 2,800 potential job losses across the businesses.
Tata Steel has put into play a plan involving closing the iron and steelmaking assets at Port Talbot and the subsequent transition to sustainable low-CO2 steelmaking.
The plan involves a £1.25 billion investment in electric arc furnace technology at Port Talbot and asset upgrades. Of the £1.25 billion investment, the UK government has committed £500 million to enable the transition, and Tata Steel plans to invest £750 million.