Tata Steel Hinted at Potential Blast Furnace Shutdown at Port Talbot

SEATTLE (Scrap Monster): Tata Steel hinted that it may be forced to shut down one of the two blast furnaces in Port Talbot, if the government fails to come up with long-term rescue plans for the country’s steel industry, which is passing through a period of crisis. Furthermore, the company urged the UK government to provide details of support before July this year, so as to go ahead with the planned multi-million dollar investment towards green steelmaking.

According to the company, it plans to wind down one of the blast furnaces at Port Talbot over the next few years. The company has left with a few options such as extending its life, closing it or replacing it with an electric arc furnace. The failure to switch to new technology would lead to permanent closure of the facility, which in turn could result in loss of thousands of jobs.

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Tata Steel expressed dissatisfaction over the recent budget presented by the UK government, which failed to announce any concrete relief measures to save the ailing steel industry. The recently declared Supercharger scheme, aimed at cutting energy costs, is likely to come into effect only after a year.

It must be noted that Tata Steel, along with British Steel, is in negotiations with the government on a £300 million package to boost investment in green technology.