Tata Steel has revealed its plan to transition from traditional blast furnaces to environmentally friendly steel production methods. Tata Steel aims to reverse over a decade of losses by transitioning to green steel production, aligning with global sustainability goals.
The strategy includes the closure of high-emission blast furnaces in Port Talbot. The company said in a release that Port Talbot’s two high-emission blast furnaces and coke ovens would close in a phased manner, with the first blast furnace closing around mid-2024, and the remaining heavy-end assets would wind down during the second half of 2024.
The proposal also includes the intended closure of the Continuous Annealing Processing Line (CAPL) in March 2025.
The plan promises to reduce CO2 emissions by 5 million tonnes annually, contributing to about 1.5% UK emission reduction.
Tata Steel has planned to invest in Electric Arc Furnace technology amounting to £1.25 billion, with the UK Government pledging up to £500 million to facilitate the transformation.
T V Narendran, Tata Steel’s Chief Executive Officer and Managing Director, said in a release: “The course we are putting forward is difficult, but we believe it is the right one. Having invested almost £5 billion in the UK business since 2007, we must transform at pace to build a sustainable business in the UK for the long term. Our ambitious plan includes the largest capital expenditure in UK steel production in more than a decade, guaranteeing long-term, high-quality steel production in the UK and transforming the Port Talbot facility into one of Europe’s premier centers for green steelmaking.”
The company’s announcement that the transition could cause about 2,800 potential job losses has caused unrest. Steelworkers, unions, and residents told BBC that the proposals would leave the town “doomed.”
“We recognize this proposed restructuring would have a major impact on the individuals and communities concerned, whom we will support with dignity and respect. In consultation with our union partners, Tata Steel will offer a comprehensive support package to mitigate the impact of any anticipated job losses, including helping employees to retrain and find new jobs. We will continue our work with the UK and Welsh governments, trade unions, and the community to help those who may be affected through the proposed transition,” T V Narendran said in the release.
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