Tata Steel to Cut Up to 2,800 Jobs in Electric Shift at U.K's Largest Steel Site — Update
By Christian Moess Laursen
Tata Steel said it expects up to 2,800 employees will be affected from a restructuring of its U.K. business, in a move to reverse more than a decade of losses and transition to more sustainable steel production at its Port Talbot site in South Wales.
The Indian multinational steel-making company said Friday that around 2,500 roles would be affected in the next 18 months.
A further 300 roles could be affected in three years, it said. The company said statutory consultations on the restructure will begin, although it didn't specify when.
The first of Port Talbot's two high-emission blast furnaces and coke ovens would close around mid-2024, and the remaining heavy-end assets would wind down during the latter part of the year, the company said.
This would cut carbon emissions by about 85% and the U.K.'s overall carbon emissions by about 1.5%, it said.
Tata Steel would continue to operate the hot strip mill--used to reheat thick steel slabs into thin sheets--through the transition and in the future, as per discussions with the U.K. Steel Committee.
Under the reorganization plans, 1.25 billion pounds ($1.59 billion) will be invested in electric arc furnace technology in Port Talbot and asset upgrades "to secure long-term, high-quality production" at the U.K.'s largest steelmaker, the company said.
The proposed investment is supported by the U.K. government, which has committed up to GBP500 million to help the transition, while Tata Steel plans to invest GBP750 million.
Write to Christian Moess Laursen at christian.moess@wsj.com
(END) Dow Jones Newswires
January 19, 2024 09:17 ET (14:17 GMT)
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