Tata Steel to Shut Down Port Talbot Blast Furnaces

SEATTLE (Scrap Monster): Tata Steel has reportedly rejected a plan formulated by the trade unions to keep the Port Talbot, South Wales, UK blast furnaces running. The shutdown of the two blast furnaces is feared to impact around 3,000 jobs. The decision follows a meeting between company executives and union leaders held yesterday in London. The official announcement outlining the closure plans is expected soon.

The Indian steelmaker had earlier decided to transform Port Talbot plant to an electric arc furnace (EAF) only site, as part of efforts to reduce its carbon emissions and achieve its net-zero goals. The EAF steelmaking makes use of recycled scrap and is an environment-friendly and cost-effective means of producing steel.

The unions had proposed to keep the blast furnaces operational during the transition phase, at least until 2032. However, the company management stated that it is unaffordable for it to keep the blast furnaces running, mainly because the steel plant has already been in a loss. The UK steelmaking business, comprising of Port Talbot and Scunthorpe furnaces have been reporting significant losses over the past several quarters.

Tata Steel had reported a loss of INR 6,511 crore during the July-September quarter of the fiscal year FY23-24. This was mainly on account of significant impairment charges related to the Port Talbot units.