Tata Steel, UK unions reach deal; stage set for electric furnace at Port Talbot

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Also read: Tata Steel CEO TV Narendran says UK job cuts ‘least bad option,’ will continue talks with unions Discussions will continue with the trade unions over the next two weeks on a potential Memorandum of Understanding on the future ambitions of the business and the impact of the restructuring on employees, the company further added. "Having looked carefully at all the options over the past seven months in consultation with union representatives, we have decided to proceed with our proposed restructuring and transition," Tata Steel managing director TV Narendran said.

"This is the most viable proposal, in contrast to the unions’ unaffordable plan which has high inherent operational and safety risk. Our proposal secures a long-term future for the business and preserves the majority of jobs in the UK.

We will continue to work with the trade unions over the following 2 weeks to agree a memorandum of understanding on the future of the UK business and the impact on our people. Tata Steel is committed to creating a low-CO2 steel business at the heart of a green industrial ecosystem in Wales and the wider UK to safeguard steel supplies and create economic opportunities for generations to come," he said.

Also read: Tata Steel to cut 2,800 UK jobs, shut down 2 blast furnaces at Port Talbot The £1.25 billion restructuring plan will see Tata Steel close its two blast furnaces by June and September this year and replace them with an electric arc furnace. While the new process causes less pollution, it also requires fewer people to run.

Tata Steel said the new plan will preserve around 5,000 jobs in the UK that would have been lost had the plant been shut. The restructuring also secures future supplies to customers, the company