Tata Steel to close UK blast furnaces by 2024-end with loss of up to 2,800 jobs
The decision to close the blast furnaces comes after Tata Steel reported a net loss of Rs 6,511 crore in the September quarter, with income down at Rs 55,910 crore.
- Jan 19, 2024,
- Updated Jan 19, 2024 9:15 PM IST
Tata Steel has announced the restructuring of its UK operations, which will result in the closure of both blast furnaces at its Port Talbot plant in Wales by the end of the year, Reuters reported. This move is expected to lead to the loss of up to 2,800 jobs, as the company transitions from coal-fired blast furnaces to electric arc furnaces—a change that is supported by a £500 million investment from the British government aimed at creating a greener steel industry.
The decision to close the blast furnaces comes after Tata Steel reported a net loss of Rs 6,511 crore in the September quarter, with income down at Rs 55,910 crore. The company's UK steelmaking business has been unprofitable for over a decade, prompting this shift towards more sustainable and cost-effective production methods. The transition to electric arc furnaces is part of Tata Steel's plan to reverse these losses and establish a more sustainable business model in the UK.
"The course we are putting forward is difficult, but we believe it is the right one," Reuters quoted Tata Steel Chief Executive T V Narendran as saying. "We must transform at pace to build a sustainable business in the UK for the long-term."
The closures are a major blow to the town of Port Talbot, which has a population of about 35,000 and has been economically reliant on the steel industry since the early 1900s. At its peak in the 1960s, the Port Talbot steelworks employed around 20,000 people. However, competition from cheaper offerings from countries like China has impacted production over the years. The steel industry now represents only 0.1 percent of the British economy and accounts for 2.4 per cent of the country's greenhouse gas emissions.
Unions had proposed keeping one blast furnace operational while the electric one was being built to mitigate job losses, but Tata Steel rejected this proposal. The Unite union has expressed its intention to fight the job cuts, including the possibility of strikes. Despite the challenges, the British government has emphasized that the investment in Tata Steel's transition will secure a competitive future for the UK steel sector and protect thousands of jobs, both in Port Talbot and throughout the supply chain.
The first blast furnace at Port Talbot is expected to close around mid-2024, with the entire process being phased out by the end of the year.
Also Read: Reliance Retail Q3 results: Net profit rises 32% to Rs 3,165 cr
Tata Steel has announced the restructuring of its UK operations, which will result in the closure of both blast furnaces at its Port Talbot plant in Wales by the end of the year, Reuters reported. This move is expected to lead to the loss of up to 2,800 jobs, as the company transitions from coal-fired blast furnaces to electric arc furnaces—a change that is supported by a £500 million investment from the British government aimed at creating a greener steel industry.
The decision to close the blast furnaces comes after Tata Steel reported a net loss of Rs 6,511 crore in the September quarter, with income down at Rs 55,910 crore. The company's UK steelmaking business has been unprofitable for over a decade, prompting this shift towards more sustainable and cost-effective production methods. The transition to electric arc furnaces is part of Tata Steel's plan to reverse these losses and establish a more sustainable business model in the UK.
"The course we are putting forward is difficult, but we believe it is the right one," Reuters quoted Tata Steel Chief Executive T V Narendran as saying. "We must transform at pace to build a sustainable business in the UK for the long-term."
The closures are a major blow to the town of Port Talbot, which has a population of about 35,000 and has been economically reliant on the steel industry since the early 1900s. At its peak in the 1960s, the Port Talbot steelworks employed around 20,000 people. However, competition from cheaper offerings from countries like China has impacted production over the years. The steel industry now represents only 0.1 percent of the British economy and accounts for 2.4 per cent of the country's greenhouse gas emissions.
Unions had proposed keeping one blast furnace operational while the electric one was being built to mitigate job losses, but Tata Steel rejected this proposal. The Unite union has expressed its intention to fight the job cuts, including the possibility of strikes. Despite the challenges, the British government has emphasized that the investment in Tata Steel's transition will secure a competitive future for the UK steel sector and protect thousands of jobs, both in Port Talbot and throughout the supply chain.
The first blast furnace at Port Talbot is expected to close around mid-2024, with the entire process being phased out by the end of the year.
Also Read: Reliance Retail Q3 results: Net profit rises 32% to Rs 3,165 cr