The scale of job losses and the millions that will be lost from the economy when Tata changes to a new greener type of steelmaking at its Port Talbot steelworks have been laid bare in a report. The final remaining blast furnace at the Port Talbot site will close within weeks and in future steel at the site will be made from scrap in an electric arc furnace – a greener form of steelmaking.
Days after a deal with UK Government for funding towards the transition was signed, the first detail of how the site will change has been published. It will result in huge job losses and a £10 million blow to the local economy. The report states that without the £1.25 billion project, steelmaking at the site will end, and changing to an electric arc furnace (EAF) is the only viable solution to keep any jobs.
Dozens of documents have been released as part of a 28-day consultation ahead of the planning application being submitted. The timeline indicates a planning application will be submitted to Neath Port Talbot Council in November, with development starting on-site in July 2025. The new furnace is expected to start operating in summer 2027, according to the report.
The report spells out the impact on jobs in terms of both the construction of the new furnace as well as its operation. It details a significant impact on job numbers, people’s health, and incomes due to the changes. Tata Steel is stated to be working closely with the UK Government, unions, the transition board, and its staff to mitigate the likely adverse effects as far as possible.
Regarding the building of the new site, the report projects 1,030 full-time equivalent jobs from across the UK, with 730 in Wales. This signifies a net reduction of 3,590 jobs compared to the established baseline. Once the new furnace is operational, it could support 5,720 UK jobs, including 3,880 in Wales, resulting in a net reduction of 4,070 full-time equivalent jobs in the UK.
The report also forecasts a reduction in emissions by approximately 90% when changing to the EAF, a move equivalent to 1.5% of the UK’s total direct emissions. The steelworks will continue to operate 24 hours a day, across two shifts, seven days a week, 365 days a year. The future of the Port Talbot facility is entirely dependent on the planned investment in the EAF.
The proposal calls for the demolition of existing buildings and structures and the construction of a new EAF steel production facility. It also includes facilities for scrap metal handling, slag processing, and chemical storage, along with power infrastructure and ancillary facilities.
The Indian-steel giant Tata has indicated that the plant is currently losing around £1 million a day, citing unsustainable conditions due to ageing infrastructure. The report underscores the crucial need for continuous investment and maintenance to meet environmental and safety standards. The business is deemed not in a commercially viable position, as stated in one of the documents.
As the steel industry undergoes a transition towards greener practices, the effects on jobs and the local economy are significant. The comprehensive changes detailed in the report highlight both challenges and potential benefits for the Port Talbot steelworks and the wider community.