Tata Steel CEO hinted at 2500 job cuts in the UK. As the steel major plans to shift to the low-emission electric arc furnace (EAF) process, CEO T V Narendran announced an “inevitable” job loss.
Tata Steel owns the UK’s largest steelworks, producing 3 million tonnes per annum (MTPA), located at Port Talbot in South Wales. It employs approximately 8,000 individuals across all its operations in the country, as per the PTI report.
Changes to Tata Steel’s functioning
In line with its decarbonization strategy, the company is transitioning from the blast furnace (BF) route, which is approaching the end of its life cycle, to the low-emission electric arc furnace (EAF) process.
Speaking to PTI, Narendran stated that transitioning to the Electric Arc Furnace (EAF) with aid from the UK government will enhance the company’s competitiveness by reducing production costs and cutting down on 5 million tonnes of CO2 emissions annually.
However, he acknowledged that this transition would result in 2,500 job losses, a point of contention with the unions. Negotiations are ongoing to manage this transition as smoothly as possible.
Updating on the UK operations, Narendran mentioned the closure of coke ovens in March. One blast furnace is set to close in June due to operational challenges, while the second will shut down in September due to both asset quality and financial issues.
He said, “We want to transition to EAF production because the UK has a lot of steel scrap. It is one of the few countries which is a big exporter of steel scrap. So, it makes sense to use scrap available in the UK to make steel in the UK to sell to customers in the UK, as compared to importing iron ore and coal from all over the world.”
The CEO previously announced that Tata Steel aims to achieve complete decarbonization at its UK plant within the next three years.
(With PTI inputs)