UK Labour government likely to go tough on Tata Steel Wales job losses
Tata Steel protect local jobs at its Port Talbot plant, before it approves the 500-million ($635 million) lifeline offered by the previous administration for building a low-carbon facility.
«Decarbonisation does not mean deindustrialisation,» new UK business secretary Jonathan Reynolds told ET in a response to email queries. «I will be working to safeguard jobs as part of negotiations, securing the future of steel-making communities for generations to come.»
In September 2023, Tata Steel announced plans for a new low-carbon electric arc furnace (EAF) at its Wales factory, to be commissioned in 2027. The project entails investment of 1.25 billion jointly with the UK government, and thus hinges upon final approval of the grant.
After the political switch, however, Asia's oldest steelmaker may be in for tough negotiations, and have to incorporate a few changes in the deal signed with the erstwhile Conservative administration, officials close to the development said.
At present, Port Talbot operates with the traditional blast furnace. Its transition to an EAF is expected to reduce around 2,800 jobs, a move that is facing strong dissent from the local unions.
Tata Steel did not comment.
'Redundancies Inevitable'
Tata Sons chairman N Chandrasekaran, though, acknowledged during a meeting of Tata Steel shareholders that this transformation would be difficult, not only from an execution perspective, but also «for some of the employees who will not have a future with Tata Steel, especially in the UK.»
Tata Steel UK
