Tata Steel may shut blast furnaces in UK earlier amid strike by workers

Tata Steel plans to shut down its blast furnaces in the UK earlier than scheduled due to a potential indefinite strike by workers protesting against job losses. The company cites operational instability and unsustainable losses as reasons for the ...

Tata Steel Ltd may shut down its blast furnaces in the UK earlier than what it had initially planned amid a certain section of its workers planning an indefinite strike to protest against 2,800 job losses.

Tata Steel, which has the capacity to produce 3 million tonne of steel each year in UK, plans to shut down one blast furnace at the end of the month, while the second one is scheduled to be closed at the end of September.

“Our existing steelmaking assets are near the end of their life, are operationally unstable and causing unsustainable losses of £1 million a day,” Tata Steel said in a statement.



While the preparations to close the blast furnaces and the associated plants remain unchanged, the company said that “we will be forced to accelerate those closure plans” if the safety and stability of the operations are put at risk because of the planned strike by workers.

This is the first time in four decades that the workers in the UK will be on a strike, which is planned from July 8 onwards, just days after the UK goes for general elections. Around 1,500 workers based in Port Talbot and Llanwern in Wales will be a part of this strike.

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“The strikes will go on until Tata halts its disastrous plans. Unite is backing Tata’s workers to the hilt in their historic battle to save the Welsh steel industry and give it the bright future it deserves,” Sharon Graham, the general secretary for Unite said in a statement.

Tata Steel is shutting down its blast furnaces in the UK as it transitions to an environment-friendly electric arc furnace, for an investment of 1.25 billion pound sterling, with aid from the local government. The largest investment in the UK steel industry in decades, this move is expected to cut carbon emissions in the UK by five million tonnes a year, or 1.5% of the country’s direct carbon emissions.


“We are extremely disappointed by Unite’s unilateral decision to call strike action,” Tata Steel said.

Tata Steel employs around 8,000 people at its operations in the UK, and will be offering a support package to those who are likely to lose their jobs. The company also improved its support offering to employees who would be impacted to its most generous ever.
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“Rather than taking strike action, we would have expected Unite to put our improved offer to its members, as previously accepted by all unions, including Unite,” Tata Steel said.
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