Tata Steel Gets UK Grant for Port Talbot Decarbonization, Up to 3,000 Job Cuts Feared

By Elena Vardon

The U.K. government will give Indian group Tata Steel up to 500 million pounds ($620.4 million) in funding to modernize the Port Talbot steel production plant in Wales, a move that could put up to 3,000 jobs at risk.

Tata Steel is investing 1.25 billion pounds ($1.55 billion) to decarbonize steel production by replacing the existing coal-powered blast furnaces at the site with a new electric arc furnace, it said in a statement Friday.

The company said the investment could lead to a "deep restructuring" of the Port Talbot site.

"Tata Steel UK employs over 8,000 people, including at Port Talbot, which would otherwise be under serious threat without substantial investment to guarantee its future," the government said. The proposal could potentially save more than 5,000 jobs across the country, it said.

Steelworkers union Community said the strategy could be bad for the economy and the industry. "Putting all our eggs in the electric arc basket will come at the cost of thousands of jobs, our economic security, and the independence of our industry," it said in a statement.

Tata Group Chairman N Chandrasekaran said the proposal "will preserve significant employment and presents a great opportunity for the development of a green technology-based industrial ecosystem in South Wales."

Write to Elena Vardon at elena.vardon@wsj.com

(END) Dow Jones Newswires

September 15, 2023 10:05 ET (14:05 GMT)

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