Tata Steel may explore green strategy in UK, says report

Tata Steel is exploring plans to close its two blast furnaces at its Port Talbot steelworks in Wales and replace them with electric arc furnaces as part of plans to acquire millions of pounds via a UK government coronavirus bailout fund, according to a report.

The Indian steel giant and sister company, Tata Motorsowned Jaguar Land Rover (JLR), are trying to obtain state support via the Project Birch fund, which was set up to help big firms crippled by the Covid-19 pandemic, The Sunday Times reported.

Under the proposal, being studied by the UK government, the state would invest alongside Tata, with the conversion of the furnaces starting in 2025.

Ministers have placed stringent conditions on Project Birch cash, including demanding that firms help it achieve its target of net-zero carbon emissions by 2050 and that jobs are not lost.

“Given prevailing conditions, it is clear Port Talbot operations face structural challenges that need to be addressed,” Tata said in a statement. “Discussions with the government are ongoing, and at this stage, no decisions have been made.”

However, workers' unions are concerned that the switch could lead to mass unemployment at the site, especially if Port Talbot's two blast furnaces are not kept open while their electric arc replacements are built.