Team Blitz India
LONDON: Tata Steel has announced its decision to halt coke oven operations at its Port Talbot facility in the UK due to a decrease in operational stability, a significant step in its ongoing restructuring efforts. The move comes amid the company’s strategic overhaul aimed at securing its position in the steel industry.
The decision, outlined by Tata Steel, underscores its commitment to maintaining the UK’s self-sufficiency in steel production while ensuring the preservation of most of Tata Steel UK’s existing product capabilities. However, the closure necessitates an increase in coke imports, as per the company’s recent statement.
Tata Steel’s restructuring plan includes advanced consultations with UK trade unions regarding the closure of iron and steelmaking assets at Port Talbot.
The company aims to transition towards sustainable, low-carbon steelmaking through substantial investments in electric arc furnace (EAF) technology, amounting to £1.25 billion in Port Talbot, alongside other asset upgrades.
This decision follows Tata Steel’s announcement in January regarding the closure of two blast furnaces and coke ovens at the Wales facility, potentially impacting up to 2,800 jobs. Furthermore, the company anticipates additional job losses over the next three years as part of the consolidation and rationalization of its operations.
To support affected employees, Tata Steel, along with the UK and Welsh governments, has established a transition board with £100 million in funding for short-term support and long-term economic regeneration initiatives.
Amidst these changes, Tata Steel UK aims to reduce its CO2 emissions by 5 million tonnes annually. This effort aligns with the company’s broader objective of transforming its UK business operations, which also involves the closure of the continuous annealing processing line in March 2025. In September 2023, Tata Steel entered into an agreement with the UK Government to convert its coal-based steel manufacturing at Port Talbot into EAF, with a total investment of £1.25 billion.
While the UK Government pledged £500 million, Tata Steel plans to invest approximately £700 million from its internal accruals over the next four years, signaling a joint commitment towards sustainable steel production.
