Replacing the two traditional blast furnaces in Port Talbot meant around 2,800 jobs will eventually be lost
Today marks the start of a new era in Port Talbot as Tata Steel begins construction on its £1.25bn electric arc furnace which has been part funded by the UK Government.
Tata cited cost-cutting and climate targets as the main reasons for its controversial decision to shut the historic steel plant’s two blast furnaces, signalling the end of steelmaking from raw materials in Wales, and replacing them with an electric arc furnace to recycle previously-used steel.
Replacing the two traditional blast furnaces in Port Talbot meant around the total workforce at Port Talbot will shrink dramatically – with the loss of at least 2,800 jobs. Although the UK Government says that its £500m investment in the new furnace means that 5,000 jobs will still remain.
Tata says it has lost £4bn in Port Talbot since 2007 and the new furnace would ensure a “financially and environmentally sustainable future” as well as reducing the site’s carbon emissions by 90%.
On Monday, construction begins on the new furnace. Union assistant general secretary Alasdair McDiarmid said it was a “bittersweet day” for Port Talbot and Wales.
He said: “The workforce needs the electric arc furnace project to be both a success and a turning point and we look forward to playing our part to get the new furnace up and running.
“Today should represent the first step towards rebuilding our steel industry and creating new high-quality jobs for our steel communities.
“Going forward we must see further investment to develop and grow the business both here in Port Talbot and across all the crucial downstream sites.”
Tata Group chairman Natajaran Chandrasekaran said Tata was “supporting jobs” in Port Talbot. “This is a proud day for the Tata Group, Tata Steel and for the UK,” he said.
“Today marks not just the beginning of a new electric arc furnace but a new era for sustainable manufacturing in Britain.
“At Port Talbot we are building the foundations of a cleaner, greener future, supporting jobs, driving innovation, and demonstrating our commitment to responsible industry leadership.
“This project is also part of Tata Group’s wider investment in the UK across steel, automotive, and technology among others, which reflects our deep and enduring partnership with this country.”
Tata Steel has appointed contractor Sir Rober McAlpine to deliver the project which will entail new buildings being constructed while a scrap processing plant will also be on site. The furnace will work by melting steel.
In May we spoke to Graham Rowland who followed his father and grandfather in steelmaking in Port Talbot. He said: “I have seen good friends… good boys lose their jobs. If you never shed a tear you’re a very hard man.
“Because that industry kept this town alive. It’s the heart and soul of the place. If anywhere can make that arc work, it’s Port Talbot. The knowledge, the grit, the people — it’s all here. We just need the right support.”
First Minister Eluned Morgan said: “This is a momentous day for heavy industry in Wales. Seeing spades in the ground today provides a tangible sign of Tata’s intention to continue producing steel in the area, an industry which has provided quality jobs to local people for generations.”
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