Tata Steel | (Photo: Shutterstock)
Britain has secured improved terms for 2,500 steel workers set to lose their jobs, the government said on Wednesday, as it recommitted to a 500 million pound ($654 million) investment to help Tata Steel decarbonise its site in Wales.
The Labour government, elected in July, tweaked the previous Conservative government’s deal, saying there would be better terms for those made redundant at the Port Talbot site as well as a commitment from India’s Tata to consider new investments.
Tata said in January that up to 2,800 jobs were at risk from the closure of its two blast furnaces at Port Talbot, with about 2,500 job losses likely in the next year as a result of a 2023 government-backed plan to shut the blast furnaces and build an electric arc furnace, a less carbon intensive production method.
Business and trade minister Jonathan Reynolds said on Wednesday the government would publish a strategy for Britain’s steel sector next Spring, with the aim of boosting an industry that has been in decline for decades, hit by lower cost imports.
“This government is taking strong action through a new deal and strategy which will reverse the industry’s stagnation and set out a long-term vision for a bright and sustainable future,” Reynolds said in a statement.
He said the government planned to invest 2.5 billion pounds in the steel industry, on top of the 500 million pounds for Tata. The government said about 2,000 Tata staff had already expressed an interest in taking voluntary redundancy.
Before Tata began the process to close its blast furnaces – it will shut its second one some time this month – it said it had been losing 1 million pounds a day, illustrating the scale of the challenge for UK producers.
China-owned British Steel, which has two blast furnaces in Scunthorpe, northern England, is also in talks with the government about shifting to cleaner manufacturing.
The switch to electric steelmaking is expected to cut Britain’s carbon emissions by 1.5 per cent as Port Talbot’s coal-fired plant is the country’s biggest single carbon emitter.
Under the new deal between Tata and the government, Tata will evaluate future investment opportunities in steel in Britain and promise to retain 5,000 jobs across its UK business following the blast furnace closure job losses.
The government said it could claw back its investment should Tata renege on the deal.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
First Published: Sep 11 2024 | 5:46 PM IST
