Posted: Thu 18th Jan 2024

North Wales MS seeks Tata Shotton reassurances amid ‘heartbreaking’ job losses at Port Talbot

News and Info from Deeside, Flintshire, North Wales
This article is old - Published: Thursday, Jan 18th, 2024

Tata Steel is set to announce the closure of both of its blast furnaces at the Port Talbot steelworks, a move that could lead to the loss of around 3,000 jobs.

A North Wales politician has called for ‘urgent clarity’ on the impact this will have on Tata Steel’s Shotton Works.

Employing 700 people, Tata Shotton produces a unique range of metallic and paint-coated products for construction and domestic appliance sectors in the UK and overseas, with around 95% of its feedstock coming from South Wales.

Union leaders were informed on Thursday that Tata Steel plans to shut the two blast furnaces at its Port Talbot plant in Wales by the end of this year.

It’s reported that Tata has accepted a proposal from the unions to keep Port Talbot’s hot strip mill open during a transition period, thereby protecting about 200 jobs.

The company also plans to import semi-finished steel, or slab, for processing in the UK.

This decision implies that Port Talbot, with a workforce of 4,000, will face the majority of the redundancies.

The job losses will significantly impact South Wales’s economy, where Tata is the largest private employer in Port Talbot.

Tata Steel is investing £750 million, supported by a £500 million grant from the British government, to finance this restructuring.

The company aims to replace the primary steelmaking blast furnaces at Port Talbot, which convert iron ore to molten iron and then steel, with an electric arc furnace.

This method, less labour-intensive, uses scrap steel.

Management at Tata rejected a union alternative to keep one blast furnace operational until 2032 to lessen the layoffs, citing daily losses of about £1 million.

The alternative would have incurred an additional £650 million cost.

Plaid Cymru MS for North Wales, Llyr Gruffydd, expressed his concerns: “This is a heartbreaking hammer blow for thousands of Tata workers and their families.”

“It doesn’t represent the just transition that Governments in London and Cardiff tell us they want to see.”

“I’m seeking urgent clarity on this decision’s impact on Tata Steel’s Shotton Works in my region. Nearly 95% of its feedstock comes from South Wales.”

Mr Gruffydd said: “Any reduction in that supply will have a knock-on effect, and the company must provide urgent clarity on how the announcement on Port Talbot will impact its workers in North Wales.”

Unite general secretary Sharon Graham commented: “Tata is still playing games with people’s livelihoods.”

“Whatever and however they announce their plans for Port Talbot, Unite will fight tooth and nail to defend steel workers and our steel industry.”

“We have already demonstrated how and why Tata should be expanding UK steel production in line with growing demand.”

“The government now needs to step in and step up. This is the time to defend British workers and communities, as well as our industrial base and national security. ”

“More managed decline can only help the UK’s competitors – steel producers in other countries. Politicians need to make the right choices now, or they will not be forgiven easily.”

In a statement issued on Thursday, Tata says it has been talking “regularly and constructively” with trade unions about how to create a sustainable green future for the company in the UK.

“When we have any formal announcement to make about our proposals for the future, we will always share these with our employees first.”

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