Around 3,000 jobs at risk at UK's biggest steelworks despite government-backed package of support
Around 3,000 workers at Britain’s biggest steelworks face the prospect of losing their jobs as part of a government-backed package to make the plant “greener.”
LONDON — Around 3,000 workers at Britain's biggest steelworks face the prospect of losing their jobs as part of a government-backed package Friday to make the plant “greener.”
The British government confirmed widespread speculation that it will pump up to 500 million pounds ($620 million) into the loss-making Port Talbot steelworks in south Wales, money it says will safeguard the future of a site that has been making steel since the early 1900s.
“This proposal is a landmark moment for maintaining ongoing U.K. steel production, supporting sustainable economic growth, cutting emissions and creating green jobs,” said Treasury chief Jeremy Hunt.
Tata, the Indian conglomerate that owns the steelworks, will use the government subsidy to help switch the plant’s two coal-fired blast furnaces to electric arc versions that can run on zero-carbon electricity.
Tata, which employs around 8,000 people across the U.K., will also invest around 750 million pounds into the project, but cautioned that the plans will lead to consultations over a “deep potential restructuring” — code for job losses.
In a separate statement Friday, Britain’s Department for Business and Trade said the deal will only safeguard around 5,000 jobs out of Tata’s total workforce.
Tata said the deal lays out a future for sustainable steel-making in the area and committed to undertake a “meaningful" consultation with unions.
“With the support of the U.K. government and dedicated efforts of the employees of Tata Steel U.K. along with all stakeholders, we will work to transform Tata Steel UK into a green, modern,
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