The construction of Tata Steel’s electric arc-furnace at Port Talbot Steelworks began today. This has created around 5,000 new jobs.
The project will begin construction today with the help of Jonathan Reynolds, Wales Secretary Jo Stevens and Natarajan Chandrasekaran, chairman of Tata Group.
Labour, 10 weeks after assuming power, agreed to a grant of PS500 million from the UK government.
Sarah Jones, the industry minister, is chairing the Steel Council meeting in Cardiff today to finalise the Steel Strategy. The Steel Strategy will be backed up by investment of up to PS2.5bn.
This strategy includes a reduction in energy costs for the steel industry announced last month. It also includes safeguarding measures that protect the steel sector from spikes in foreign steel imports. And it changes procurement rules so that UK-made steel gets priority for public construction projects.
The UK government also supports the steel industry by working closely together with the US in order to remove 25% tariffs from steel and aluminum, while the UK is the only country that does not pay a tariff of 50%.
The Welsh Steelmaking Industry is a great success story, said Business Secretary Jonathan Reynolds. It will provide certainty for local communities as well as thousands of jobs in the local area for many years to come.
He said that the government was committed to a future of bright prospects for our steel industry. This is why it provided PS500m to fund this project. “Our modern Industrial Strategy outlines how we will support the steel industry even more, including by slashing the energy costs for companies like Tata Steel in order to level the playing fields, as part our Plan for Change.”
Electric arc furnaces are expected to reduce carbon emissions at Port Talbot by 90%.
Chandrasekaran stated: “This is an exciting day for Tata Group and Tata Steel, as well as for the UK. The groundbreaking today marks the start of a brand new electric arc kiln, as well as a new era in sustainable manufacturing for Britain. We are building the foundations for a cleaner and greener future at Port Talbot. We support jobs, drive innovation, as well as demonstrate our commitment to industry leadership.
Stevens stated: “The construction and installation of Tata’s furnace is a fulfillment of the promise that we made to our community. The development of floating offshore winds, plans for the Celtic Freeport, as well as millions of dollars more in local regeneration, all ensure Port Talbot a bright future.”
Alasdair MacDiarmid, Assistant General Secretary of the Community Union, said that this bittersweet day was a result of the devastating closing of the blast furnaces. But, it is important to note, Port Talbot Steelmaking has a bright future. We are looking forward to helping to make the electric arc project a success.
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