homebusiness NewsTata Steel UK to shut down ageing coke ovens at Port Talbot plant in Wales

Tata Steel UK to shut down ageing coke ovens at Port Talbot plant in Wales

To offset the closures, Tata Steel UK revealed plans to ramp up imports of coke, aiming to maintain production levels amidst the operational changes.

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By Anand Singha  Mar 18, 2024 8:35:28 PM IST (Published)

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Tata Steel UK to shut down ageing coke ovens at Port Talbot plant in Wales

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Tata Steel UK announced on Monday, March 18, its decision to halt operations of the coke ovens at its Port Talbot plant in Wales. The decision comes in response to a notable decline in operational stability, with the company previously stating that many of its heavy-end assets in Port Talbot are reaching their end-of-life capability.
To offset the closures, the company revealed plans to ramp up imports of coke, aiming to maintain production levels amid the operational changes.
Earlier disclosures by Tata Steel highlighted the financial strain faced by its operations in Port Talbot, with daily losses amounting to approximately £1 million. The prospect of sustaining operations through traditional steelmaking methods posed further financial risks, with projected losses estimated at £600 million.
In response to these challenges, Tata Steel has initiated consultations with trade unions in the UK, outlining proposals for a comprehensive restructuring plan. This plan entails the closure of iron and steelmaking assets at Port Talbot, coupled with a transition towards sustainable low-CO2 steel production. The transformation involves a substantial £1.25 billion investment in electric arc furnace technology, alongside upgrades to existing assets in Port Talbot.
However, the transition to low-emission steelmaking methods raises concerns about potential job losses. Tata Steel anticipates that the adoption of electric furnaces, while environmentally beneficial, could result in the displacement of approximately 2,800 jobs due to reduced manpower requirements.
The latest announcement follows Tata Steel's earlier decision, disclosed on January 19, to phase out two blast furnaces at its Port Talbot Steelworks. This phased shutdown, set to commence around mid-2024, aligns with the company's broader objectives to restructure its UK operations in alignment with sustainable practices.
As part of its transformation strategy, Tata Steel said it will "commence statutory consultation as part of its plan to transform and restructure its UK business. This plan is intended to reverse more than a decade of losses and transition from the legacy blast furnaces to a more sustainable, green steel business."
"Port Talbot’s two high-emission blast furnaces and coke ovens would close in a phased manner with the first blast furnace closing around mid-2024 and the remaining heavy end assets would wind down during the second half of 2024," the company had said.

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