The UK government said that it has started supporting those affected by Tata Steel UK’s decarbonisation process with the release of an initial £13.5 million (Rs 142.06 crore), which will also be available to affected workers to enable them to retrain or acquire new skills for the labour market.
A statement from the Welsh Department of Foreign Affairs on Monday said the funds from the Tata Steel/Port Talbot Transition Board fund will support local businesses that are heavily reliant on Tata Steel as a major customer and enable them to move to new markets and customers where appropriate.
At a meeting last week, the board discussed how the funds would be allocated, monitored and evaluated to ensure “value for the taxpayer”. “This funding is an important step in supporting workers affected by the transition at Tata Steel and businesses in the wider supply chain,” said Jonathan Reynolds, UK Secretary of State for Business and Trade.
“We are working in partnership with unions and industry to ensure a green transition of the steel sector that benefits the economy, our talented workforce and local communities for generations to come, and our negotiations with Tata are ongoing,” he said.
Last week, Tata Steel UK’s transition committee was briefed on the company’s decarbonisation project and how the company will support those affected.
Welsh Minister Jo Stevens announced that more than 50 companies have so far signed a pledge to support any workers forced to leave their jobs at the Port Talbot steelworks in Wales. “Negotiations with Tata Steel over the future of the site will continue separately. But this Government will not wait for a crisis to befall us before acting. We will put a safety net in place now to ensure we can support workers and businesses whatever happens,” Stevens said.
“The steel industry is the lifeblood of Welsh communities, but so is supporting local businesses. What they offer will make a real difference to suppliers and employees,” she said.
The Mumbai-headquartered steel giant, meanwhile, has been running an informal consultation process before Tata Steel UK submits a planning application for its new electric arc furnace, which is due to come online in late 2027.
“What we are doing here is a massive transformation of the steelworks to low-carbon electric arc furnace production, which has implications for the whole community,” Tata Steel UK chief executive Rajesh Nair said during a recent visit to Wales.
“People want to know how this will affect their daily lives, in terms of dust, noise, etc. We have been able to explain to them how this new investment and new technology will make a significant difference, particularly on these environmental issues,” Nair said.
The new furnace is designed to make steel using UK scrap as a feedstock. By restructuring our UK operations, we will be able to sustain the business during the transition to the new electric arc furnace technology,” Tata Steel UK said previously. The new Labour government has pledged a reshuffle of the relationship between the devolved Welsh government and the DBT – with both being run by the Labour Party, unlike under the previous Conservative Party administration in Downing Street.
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