Tata Steel confirms plans to close furnaces at Port Talbot, putting nearly 3,000 jobs at risk

ITV News' Rhys Williams spoke to workers and unions about the decision

Tata Steel has confirmed plans to close both blast furnaces at its biggest UK plant, putting nearly 3,000 jobs at risk.

Most of the cuts will be at Port Talbot in south Wales, with about 2,800 roles potentially affected, with 2,500 jobs lost in the next 18 months.

Tata says a 45-day consultation will get underway as part of its plan to "transform and restructure its UK business".

The UK Government will contribute £500m towards the £1.25bn cost of replacing the blast furnaces with an electric arc furnace.

A "social and economic body-blow" with "far-reaching implications" is how, Vaughan Gething, the Welsh Government's Minister for Economy has described the news.

With the UK government saying it's "determined to secure a sustainable and competitive future for the UK steel sector."

Tata's statement says: “This plan is intended to reverse more than a decade of losses and transition from the legacy blast furnaces to a more sustainable, green steel business.

“The transformation would secure most of Tata Steel UK’s existing product capability and maintain the country’s self-sufficiency in steelmaking, while also reducing Tata Steel UK’s CO2 emissions by five million tonnes per year and overall UK country emissions by about 1.5%.”

Steel trade unions Community and the GMB have issued a statement saying they “do not accept” Tata Steel’s rejection of the Multi-Union Plan. They are calling on the steel giant’s board to work with them to “deliver the best possible outcomes” for all its workers. 

Both will consult members on the next steps saying “all options to protect jobs are on the table”, and they are not ruling out “industrial action”. 

Community General Secretary Roy Rickhuss says the changes will be “devastating” for Port Talbot and the wider steel industry, “decimating” Britain's primary steelmaking capacity and “carbon emissions offshored to heavy polluting countries”.  

Mr Rickhuss continued: "It doesn't have to be this way, and our credible Multi-Union Plan lays out a better path to protect jobs, the economy and our environment. In yesterday’s meeting senior officials from Tata acknowledged that our plan was serious and deliverable, but they would not commit to the additional funding required to make it a reality. 

“They must reconsider, and the UK Government must do much more to deliver the funding to retain our strategic steelmaking capability within the UK."

With more than 3,000 jobs at stake, the Community trade union says it is “an absolute disgrace”.

In a written statement, it says: “Tata Steel, and the UK Government, appear intent on pursuing the cheapest instead of the best plan for our industry, our steelworkers and our country.

“It’s unbelievable any Government would give a company £500m to throw 3,000 workers on the scrapheap, and our Government must reevaluate its miserly offer to support investment at Tata Steel."

It added: “The German, French and Spanish Governments are all committing billions to secure the future of their strategically important steel industries, and our Government must show similar ambition."

First Minister Mark Drakeford has described the situation as "very concerning" and has written to Rishi Sunak asking for an urgent call.

In the open letter, Mr Drakeford said: "I am sure you will agree with me the loss of production of virgin steel at scale will have a profound impact on the UK’s economy and I would ask if you and I could have an urgent discussion regarding this strategic matter at your earliest convenience."

According to the first minister's official spokesman, Number 10 has confirmed that the prime minister is not available to take a call on Tata.

Prime Minister Rishi Sunak has reacted to Tata's announcement saying the UK government is “absolutely committed” to British steelmaking, when asked about expected plans for Tata Steel to close both blast furnaces at its biggest UK plant, threatening more than 3,000 job losses.

Asked whether he was happy about the prospect of job cuts, Mr Sunak said: “I know first of all that it will be a worrying time for everyone affected, and because it’s a commercially sensitive matter, and people appreciate there’s a limit to what I can say.

“But what I can tell you is we are absolutely committed to steelmaking in the UK and that’s why the Government provided half a billion pounds to support Tata.

“The alternative, by the way, was it, the entire plant will be closed and all 8,000 jobs will be lost, but the Government worked with the company.

“The company is investing more money in order to safeguard thousands of jobs, and that’s something that the UK Government has done.

“The Welsh Government did not participate in that and that’s because we cared about those jobs and the future of steelmaking in Wales and the UK, because there’s an announcement coming later, but it’s important that we wait for that.”

But Minister for Economy, Vaughan Gething says the Welsh Government has "worked closely with Tata and the recognised steel trades unions for many years to safeguard these vital jobs and the long-term future of steel production in Wales".

He questions the UK government's handling of the whole situation saying it has "damaged our ability to create the long-term, reliable growth that would turn net zero measures into more sustainable, green jobs in Wales".

Mr Gething added: “We have repeatedly urged the UK Government to act at scale with the investment needed to support the move to greener methods of steel production and for the company to lead on a fair and just transition for its workers and those UK companies within its extensive supply chain.

"Today’s announcement presents a social and economic body-blow with profound and far-reaching implications for Wales. It is our firm view that the Prime Minister and his cabinet do have levers at their disposal that could prevent the worst-case scenario and the scale of economic loss we now face.”

Reacting to the news, the Welsh Liberal Democrats posted a statement to X (formally twitter), saying:  “The Prime Minister and his cabinet will never know what it’s like for the thousands of workers in Port Talbot who are set to lose their jobs.

“They will never know, and they simply will never care”.

Plaid Cymru Leader,  Rhun ap Iorwerth described the news as “devastating for both the workers and the community.”

He added: “Decarbonisation should not be at the expense of the workers.

“Both Welsh and UK Govt must act with urgency to support those adversely affected by this news.”

Leader of the Welsh Conservatives, Andrew RT Davies, said his “thoughts are with all Tata workers and subcontractors”.

He continued: “Shame politicians on the left look to blame others for their own fanatical policies. Ability to produce steel is a national security issue. That’s why U.K. gov have stepped in with £500 million of support.”

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