Tata Steel-owned Port Talbot plant in South Wales hit a significant milestone on Monday when its Blast Furnace 4 ceased operations after over 100 years, marking an end of “legacy” steelmaking as the UK’s largest steelworks transitions towards greener steelmaking. Steelmaking at the site is now set to resume in 2027-2028 as part of a British government-backed investment programme of around GBP 1.25 billion in Electric Arc Furnace-based steelmaking, using UK-sourced scrap steel.
The Mumbai-headquartered steel giant said it is looking ahead to a “brighter, greener future” for the historic site and sustaining more than 5,000 jobs.
“I am deeply conscious how difficult today is for everyone associated with our business. Throughout this transition, we are doing everything possible to minimise the impact on all those who are affected by the changes we are making,” Rajesh Nair, CEO of Tata Steel UK, said in a statement.
“Today marks a significant event in the history of iron and steelmaking in the UK as the legacy steel-making assets in Port Talbot close, having reached their end-of-life. It is important at this juncture, to pause, recognise and credit the huge contribution of the many thousands of people and the technologies that have sustained our industry and communities here for generations,” he said.
He added: “In that tradition, we are planning a brighter, greener future through our GBP 1.25 billion investment in low CO2 scrap-based steelmaking, which will sustain more than 5,000 jobs across the UK, and which will also give Tata Steel businesses across the UK a competitive market advantage.
“I also believe our ability to supply customers with the highest quality low CO2 steels will provide a catalyst for others to co-invest in the South Wales region, and we look forward to future collaborations between business partners, academia, governments and communities that will secure that future.”
Tata Steel’s planned GBP 750 million investment in low-CO2 green steelmaking will be augmented by the GBP 500 million Grant Funding Agreement signed off earlier this month with the UK government.
The company said that many of the existing “heavy end” assets, such as blast furnaces and coke ovens, at Port Talbot had reached the end of their operational life. Sustaining the current configuration any longer, or further investment in the traditional heavy end, was not economically or environmentally viable, Tata Steel UK pointed out.
Following the closures earlier this year of the deep-water harbour, Morfa Coke Ovens, Blast Furnace 5 and Continuous Caster 2, the planned iron and steelmaking asset closures are completed this week with the cessation of the Sinter Plant, Blast Furnace 4 and primary steelmaking, along with some secondary steelmaking and energy systems.
Meanwhile, Tata Steel has started to share detailed drawings and virtual reality simulations of the new Electric Arc Furnace (EAF) with local communities, customers and the local planning department. The company also expects to announce the EAF equipment manufacturer in the coming weeks.
Some of the secondary steelmaking assets and two remaining continuous casters are being retained for major investments in advance of the start of the EAF. During the transition period, supply chain arrangements are to be in place to serve customers until the EAF is commissioned.
Steelworkers’ trade unions, which have undertaken industrial action and talks with the company over this transition, expressed sadness at the end of an era of steelmaking which will result in an estimated 2,800 redundancies.
Roy Rickhuss, general secretary of the Community Union, said it was an “incredibly sad and poignant day” for the British steel industry.
“Last year, Community and GMB (Union) published a credible alternative plan for Port Talbot which would have ensured a fair transition to green steelmaking and prevented compulsory redundancies. Tata’s decision to reject that plan will go down as a historic missed opportunity,” he said.
Earlier this month, Business and Trade Secretary Jonathan Reynolds told the House of Commons that the Labour government had succeeded in going much further than the previous Tory government’s pact with Tata Steel, delivering a minimum voluntary redundancy payout of GBP 15,000 for full-time employees plus a GBP 5,000 “retention” payment. The pact also includes an offer of paid-for training to give workers a steady income and upskill them for the jobs of the future.
The Department for Business and Trade (DBT) had announced that alongside making the largest investment in the UK steel industry in decades, Tata Steel has also committed to work with the government to evaluate new investments in steel.
