Wales first minister Vaughan Gething said on May 10 that he hopes a further conversation between Tata Steel and trade unions over the coming few days. Gething, who flew to Mumbai this week, held discussions with the executives of the steelmaker in a bid to secure the job losses arising from the company's decision to shut two blast furnaces in Port Talbot Steelworks.
Earlier in the year, the steelmaker announced plans to shut down the two blast furnaces in its Port Talbot Steelworks in Wales, UK, in phases, a move that may affect up to 2,800 jobs, citing loss incurred from the operations and a shift to greener goals.
"So the capital investment in partnership... I'd like to unlock that opportunity. So I have to do more than one thing as a First Minister. I've got to make case for a different future. I've got a plan for an alternative if there is no blast furnace as well.. an alternative work for Welsh workers." Gething said.
T V Narendran, CEO & MD, Tata Steel, said: “Today we had a productive discussion with the new First Minister of Wales about progressing our plans to secure the future of steelmaking in South Wales. Tata Steel’s position remains that we are committed to the green transition of the UK steel industry."
Tata Steel announced on April 25 that the steelmaker will proceed with its £1.25-billion investment to build an electric arc furnace in Port Talbot, replacing two blast furnaces and commence closure of the existing heavy end assets in the following months.
"There's a gap of about two years, from stopping the steel production by a blast furnace to electric arc starting. So in that time, all of those businesses need a supply of steel, steel slab and steel coil. So we need guarantees, they're going to be fully stocked with that steel.. So there's a number of different moving pieces to try to fix together," Gething said.
The steelmaker flagged union's suggestion of keeping one blast furnace operational as an unaffordable plan. Tata Steel UK recorded a negative EBITDA (earnings before interest, taxes, depreciation, and amortization) of £373 million and negative free cashflow of £623 million in FY23-24.
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