42
[ad_1]
Tata Steel plans to shut down two loss-making blast furnaces at its steelworks in Port Talbot, after last year securing government financing to convert the historic site in Wales into a production hub for recycled steel.
The steelmaker on Friday said the decision will affect up to 2,800 workers, and is designed to reverse more than a decade of losses at the plant.The widely expected move comes after it reached a deal with the UK government for 500 million pounds ($636 million) in funding to support its transition to making steel in electric arc furnaces.
While significantly greener than coal-fired furnaces, the new process is also much less labour-intensive. Port Talbot’s blast furnaces and coke ovens are expected to be decommissioned this year, and Tata expects 2,500 roles to be impacted within the next 18 months.
Unions had hoped to keep one of the furnaces running during the transition, but the company said doing so wouldn’t be feasible due to the heavy losses involved in running the plants.Tata’s British steelmaking operations have struggled for years to turn a profit.
The steelmaker on Friday said the decision will affect up to 2,800 workers, and is designed to reverse more than a decade of losses at the plant.The widely expected move comes after it reached a deal with the UK government for 500 million pounds ($636 million) in funding to support its transition to making steel in electric arc furnaces.
While significantly greener than coal-fired furnaces, the new process is also much less labour-intensive. Port Talbot’s blast furnaces and coke ovens are expected to be decommissioned this year, and Tata expects 2,500 roles to be impacted within the next 18 months.
Unions had hoped to keep one of the furnaces running during the transition, but the company said doing so wouldn’t be feasible due to the heavy losses involved in running the plants.Tata’s British steelmaking operations have struggled for years to turn a profit.
[ad_2]
Source link
