Tata Steel shuts 1 of its 2 blast furnaces at Port Talbot in South Wales

The decommissioning of blast furnace number 5 was in sync with the timeline indicated by the company earlier

Tata Steel closed down one of its two blast furnaces at Port Talbot in South Wales on Thursday, coinciding with the UK’s election day that saw a shift in government.

The decommissioning of blast furnace number 5 follows a timeline that the company indicated earlier. The remaining heavy-end assets are slated to wind down in the latter half of 2024, with the closure of blast furnace number 4 expected by the end of September.

Late Thursday, Tata Steel UK issued a statement confirming the cessation of operations at blast furnace number 5 at Port Talbot as part of its ongoing restructuring programme to curb daily losses exceeding £1 million. Blast furnace number 5 commenced operations in 1959.

Tata Steel UK’s chief executive officer, Rajesh Nair, assured that the company is committed to minimising the impact on affected employees and the local community. “This includes the most favourable financial package of support it has ever offered and facilities for training and upskilling activities, alongside finance for small and medium-sized businesses through the UK Steel Enterprise regeneration and job creation scheme,” the firm said.

On Friday, trade union Community emphasised the need to look forward, pledging to collaborate with the new Labour government, which has already promised £3 billion in support for the steel industry. Alun Davies, Community’s national officer for steel, remarked: “We look forward to working with Labour to secure the best possible future for our members at Port Talbot and across the steel industry.”

Ahead of the election, Labour had urged Tata Steel to delay its plans, citing a “better deal” after the polls. In September 2023, Tata Steel and the Conservative government had brokered a £1.25 billion investment for Port Talbot, including a £500 million government grant, now under scrutiny following Labour's victory.

This investment aims to transition from an emission-intensive blast furnace process to a low-carbon steelmaking process via the electric arc furnace (EAF) route. While the restructuring endangers 2,800 jobs, it safeguards 5,000 positions across Tata Steel UK units.

Tata Steel’s restructuring plan has seen a phased shutdown of its heavy-end operations. This week, the company signalled a return to discussions with the UK Steel Committee, focusing on future investments and business aspirations rather than renegotiating the current heavy-end closure plan or enhanced employment support terms. 

Community welcomed the resumption of these talks, highlighting significant commitments from the company on future investments. The union anticipates concluding discussions with colleagues in Unite and GMB and putting the package to a member ballot.

Earlier this week, trade union Unite called off a proposed strike at Tata Steel’s South Wales operations.