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‘Difficult’ day as last blast furnace shuts down at Port Talbot steelworks

30 Sep 2024 6 minute read
Tata Steel in Port Talbot, as the last blast furnace at one of the biggest steelworks in the world shuts down. Photo George Thompson/PA Wire

It is a “difficult” day for steel workers in Wales, the chief executive of Tata Steel acknowledged as the shutdown of the last blast furnace in Port Talbot began.

The company started winding up operations at blast furnace number four at the UK’s largest steel plant on Monday, bringing an end to ironmaking on the site.

The move will see nearly 2,000 jobs lost at the plant, which will transition to greener steel production from 2027.

As the shutdown got under way, large plumes of black smoke could briefly be seen pouring from the plant.

‘Deeply conscious’

Tata Steel UK chief executive Rajesh Nair said: “I am deeply conscious how difficult today is for everyone associated with our business.

“Throughout this transition we are doing everything possible to minimise the impact on all those who are affected by the changes we are making.

“Today marks a significant event in the history of iron and steelmaking in the UK as the legacy steelmaking assets in Port Talbot close, having reached their end of life.

“It is important at this juncture to pause, recognise and credit the huge contribution of the many thousands of people and the technologies that have sustained our industry and communities here for generations.”

Mr Nair said Port Talbot has often set standards for other steelmakers, and Tata wants a “brighter, greener future” through a £1.25 billion investment in low-carbon scrap-based steelmaking.

‘Market advantage’

The move is expected to secure 5,000 jobs across the UK and “will also give Tata Steel businesses across the UK a competitive market advantage”.

Mr Nair added: “I also believe our ability to supply customers with the highest quality low CO2 steels will provide a catalyst for others to co-invest in the South Wales region, and we look forward to future collaborations between business partners, academia, governments and communities that will secure that future.”

The ironworks will enter a transition phase until 2027 when steelmaking will resume through a £1.25 billion electric arc furnace – part funded by a £500 million grant from the UK Government.

The new furnace uses electric current to melt scrap steel or iron to produce steel, whereas blast furnaces use coke, a carbon-intensive fuel made from coal to produce steel.

Moving to electric arc steel production will reduce the UK’s overall CO2 emissions by around 1.5%.

In its heyday during the 1960s, more than 18,000 people were employed at Port Talbot’s Abbey steelworks.

But the site has gone through many periods of change, which have sometimes resulted in strikes and job cuts.

Indian conglomerate Tata purchased the steelworks in 2007.

Designs

Tata Steel has started to share detailed drawings and virtual reality simulations of the new electric arc furnace, with the equipment manufacturer expected to be announced in the coming weeks.

Some of the secondary steelmaking assets and two remaining continuous casters are being retained for major investments in advance of the start of the electric arc furnace.

Welsh Secretary Jo Stevens has said the UK Labour Government is determined to back Welsh steelworkers.

In a statement, she said: “This is an extremely difficult time for all the workers, their families and the wider community affected by Tata’s decision to close its remaining blast furnace at Port Talbot.

“This Government will support those affected and it is why, within weeks of taking office, we secured a better deal which secures the future of steelmaking in Port Talbot, lays the foundations for future investment and enhances protections for the workforce.

“We have also quickly released millions of pounds of funding from the Transition Board to support businesses and workers.

“Applications for that funding are now open and more will follow very soon.

“This Government is determined to back workers and businesses in our Welsh steel industry whatever happens.”

Slag

Dean Cartwright, the works manager for coke, sinter and iron, said local residents will see larger plumes of steam coming from the furnace as production is wound down, as well as prolonged “whooshing” sounds.

“We have started to change the burden – the raw materials we put in the top of the furnace – to make sure the slag formed on top of the iron is the right type for this process, and reducing the amount of coal we inject into the furnace,” he said.

“Over the next four days, we will stop adding new raw materials and bring the burden down to low levels within the furnace.

“Please remember that we have our experts monitoring every single aspect of this process as it progresses, to ensure we bring the furnace to a close safely and calmly.”

Earlier this month, the UK Government announced a £500 million package to help the Port Talbot plant transition to greener, low-carbon steel production.

It has also improved the redundancy package on offer to workers – with full-time staff getting a minimum of £15,000, plus a £5,000 retention payment and paid-for training.

Under the deal, the Government can claw back some of the £500 million invested if Tata does not fulfil its commitments, which includes retaining 5,000 jobs across its UK businesses post-transformation.

Redevelopment

Tata will also be releasing 385 acres of the Port Talbot site for industrial redevelopment.

Around 500 jobs are expected to be created during the construction of the electric arc furnace.

Leader of the Welsh Conservatives Andrew RT Davies described it as a “very sad day for Wales”, particularly the steelmaking communities.

He said: “The loss of traditional steelmaking in Wales is yet another blow to our cultural and industrial heritage.

“We have to ask ourselves if our industrial strategy is really working in our favour, and level the playing field in favour of our communities.”

Plaid Cymru has argued that Labour and the Conservatives share the blame for the lack of an industrial strategy.

Economy spokesman Luke Fletcher said: “During the general election, Labour promised a better deal for the Port Talbot steelworks.

“Today the second of its two blast furnaces shuts down. This is more than just a factory closing, it’s the end of Welsh steelmaking and the livelihoods of countless workers and families.”

Mr Fletcher said that while other nations have recognised the importance of domestic steel production and actively subsidised it, the UK has failed to do so, making the country reliant on imports.


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Hywel
Hywel
12 days ago

What effect will this have on air and environmental pollution in the surrounding area? I’ve seen a lot (understandably) about the economic and social impact of the closure, but nothing on its effects on pollution in and around Port Talbot.

Old Curmudgeon
Old Curmudgeon
12 days ago
Reply to  Hywel

I appreciate that environmental effects are important in the long term but I should imagine that today of all days there must be a lot of sad and frightened people looking at their immediate futures and wondering how they’re going to cope.

John Ellis
John Ellis
12 days ago
Reply to  Old Curmudgeon

You’re right, of course; but even so ‘Wales Today’ earlier this evening broadcast an interview with a Port Talbot local who said that at least in the future there’d be less ‘dust’ in the town’s air, which she saw as at least one positive as a consequence of the end of the town’s heavy steel-making era..

Annibendod
Annibendod
12 days ago
Reply to  Hywel

Beeb have an article about that on their site.

Hywel
Hywel
11 days ago
Reply to  Annibendod

Hi, Thanks, I’ve found the article on the bbc website.

Linda Jones
Linda Jones
12 days ago

Very sad time for the steel workers in Port Talbot, no doubt the government and Tata will promise a lot and give very little as the area becomes a graveyard for jobs.

I assume we will now have to ship steel into the UK probably from Tata’s new blast furnaces in India, not sure how this is environmentally friendly option given shipping is a major source of pollution and climate change?

John Ellis
John Ellis
12 days ago
Reply to  Linda Jones

‘… no doubt the government and Tata will promise a lot and give very little as the area becomes a graveyard for jobs.’

Hard to disagree: I was living in Gwent when the Ebbw Vale steelworks closed down, and despite many promises from the powers-that-be – and, in fairness, some efforts by government local and national to encourage new industries to establish in that area, prosperity in the heads of the valleys slumped and has never really revived. And the serial closing down of coal mining at the same time inevitably exacerbated that situation.

Adrian
Adrian
12 days ago

And the Net Zero lunacy keeps on giving!

Annibendod
Annibendod
12 days ago
Reply to  Adrian

It’s a commercial and a political choice. Net zero does not imply deindustrialisation. It should mean industrial transition to newer, better tech. Germany are doing it. They’re building hydrogen blast furnaces which is exactly what we should have done … but then that takes vision and investment. Both in short supply in Cons and Lab parties.

Now do yourself a favour and get your head out of the conspiracy echo chambers you keep reading.

Dai Ponty
Dai Ponty
12 days ago

Lets face the facts the local M P Kinock said jobs can be replaced there Wales lost around a hundred thousand jobs in the closures of the other Steel plants in Wales and the Coal mines and the Jobs that supported those industries and Tory Government and Labour did nothing to replace them we have always been pooped on from a great height by those to parties more recently the debacle over money for Wales in H S 2 nothing from either Tory or Labour England benefits and Scotland and Northern Ireland billions each Wales SOD ALL

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