Tata Steel UK, a subsidiary of India’s Tata Steel Limited, has delayed its announcement on layoffs and the shutdown of blast furnaces at its Port Talbot plant, according to news reports.
An announcement was expected after the meeting of the board of directors held on Wednesday, November 1, regarding the closure of two blast furnaces which will impact up to 3,000 jobs. However, the company has had to postpone the announcement amid objections from unions. The union officials warned Tata Steel of possible industrial action and, now with the jobs remaining safe at least for the time being, the unions are optimistic about a more gradual transition in terms of the company’s carbon reduction efforts. Union representatives are also hoping that a meaningful consultation period will start before any detailed plans are announced.
“We hope to soon start a formal information and consultation process with our employee representatives, in which we would share more details about any such proposals,” a Tata Steel spokesperson stated.
Media reports also suggest that Tata Steel is considering feeding its downstream operations through imports if the blast furnaces are shut down. Port Talbot plant has a steel production capacity of about 5 million mt per year.
As SteelOrbis reported previously, the company announced that it would complete decarbonization of its Port Talbot plant over the next three years. Tata Steel and the UK government have reached a deal to decarbonize the plant in question. As part of the deal, the government would provide funding of £500 million - one of the largest government support packages in history - for the investment of a total of £1.25 billion for a new electric arc furnace for green steel production at the plant, replacing blast furnaces which are nearing their end of life.