India’s Tata Steel Limited is considering the early shutdown of its operations in the UK in face of an indefinite strike call given by a section of workers at its mills in Port Talbot and Llanwern, according to company officials.
The company, which has a capacity to produce 3 million mt of steel a year in the UK, plans to shut down one blast furnace at the end of the month, while the second one is scheduled to be closed by the end of September this year.
About 1,500 steelworkers based in Port Talbot and Llanwern in Wales have announced plans to begin an “all-out indefinite strike action” from July 8 against the company’s plans to close the two blast furnaces and cut up to 2,800 jobs, according to the trade union Unite.
“The preparations to close the blast furnaces and associated plants in Port Talbot are unchanged. However, if the safety and stability of our operations are put at risk by this action, we will be forced to accelerate those closure plans,” a company spokesperson said in a statement.
“Rather than taking strike action, we would have expected Unite to put our improved offer to its members, as previously accepted by all unions, including Unite,” he said.
Earlier, Tata Steel expressed concerns over UK media reports that suggest the £1.25 billion investment will be put in peril due to policy differences between the Conservative and Labour parties during the ongoing election period.
A Labour Party victory in the UK could result in funding and execution uncertainties at Tata Steel’s Port Talbot plant, and, if the £500 million government support is delayed, it could lead to higher capital expenditure.