Fears 3,000 jobs could go at Port Talbot steelworks despite £500m ‘rescue’ package from taxpayers
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Taxpayers are to pump up to £500million into Britain’s biggest steelworks – but thousands of jobs still face being axed.
Tata, the Indian conglomerate that owns the Port Talbot site, will use the funding to help switch the plant’s two coal-fired blast furnaces to ‘greener’ electric arc versions.
However, the company is also warning that the plans will lead to consultations over a ‘deep potential restructuring’ – with 3,000 out of the 8,000-strong workforce set to go.
The £1.25billion furnaces are expected to be up and running within three years of getting regulatory and planning approvals.
Tata sounded the alarm last year that its UK operations were under threat unless it secured Government support to help it move to less carbon-intensive electric arc furnaces.
The existing furnaces are approaching the end of their life, but the replacements will require few people to run.
Tata, the Indian conglomerate that owns the Port Talbot site, will use the funding to help switch the plant’s two coal-fired blast furnaces to ‘greener’ electric arc versions
Announcing the funding, Business Secretary Kemi Badenoch said: ‘The UK Government is backing our steel sector.’
The grant is one of the largest government support packages in history, with ministers saying the switch to electric furnaces will reduce the UK’s carbon emissions by 1.5 per cent.
Announcing the funding, Business Secretary Kemi Badenoch said: ‘The UK Government is backing our steel sector, and this proposal will secure a sustainable future for Welsh steel and is expected to save thousands of jobs in the long term.
‘This is an historic package of support from the UK Government and will not only protect skilled jobs in Wales but also grow the UK economy, boost growth and help ensure a successful UK steel industry.’
Chancellor Jeremy Hunt said: ‘This proposal is a landmark moment for maintaining ongoing UK steel production – supporting sustainable economic growth, cutting emissions, and creating green jobs.
‘It is right that we are ready to step in to protect this world class manufacturing industry and to support a green growth hub in South Wales.’
But shadow business secretary Jonathan Reynolds said: ‘Only the Tories could spend £500m of taxpayers’ money to make thousands of British workers redundant.
‘Britain needs an Industrial Strategy that invests alongside industry delivering a return on taxpayers’ investment whilst protecting our national capabilities and workforce…
‘Labour have pledged £3billion for investment alongside industry to decarbonise steel in partnership with workers and industry investing in a range of technologies to ensure we have the clean steel we need to rebuild Britain.’
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