The future of the huge Port Talbot steelworks is under threat unless the UK Government provides £1.5bn in financial support to reduce its emissions, chair of the Indian steelmaker has said.
Speaking to the Financial Times, chairman of Tata Group, Natarajan Chandrasekaran, said action to close UK operations would be taken in 12 months if a financial support package from the Westminster was not forthcoming. Tata's primary steelmaking plant in Port Talbot employs around 4,000 with 8,000 in total in the UK with its downstream businesses, which include those at Shotton and Trostre.
The FT said that as part of a £3bn green investment strategy, Tata intends to convert its Port Talbot operation from fossil-fuel powered blast furnaces to electricity-powered arc furnaces. This would effectively see an end to primary steelmaking from raw materials and steel being made from recycling steel, which would significantly reduced emissions although the electricity demand would be enormous. Tata is looking for the UK Government to provide half of the £3bn investment cost.
