The UK’s largest steel mill has officially closed its main steel production operation in Port Talbot

After the closure of Tata Steel UK’s last blast furnace in Wales -

The UK’s largest steel mill has officially closed its main steel production operation in Port Talbot

On September 30, Tata Steel ceased its main steel production activities at Talbot Port in Wales, UK, following the closure of the last blast furnace.
In fact, Tata Steel UK has already closed its No. 5 blast furnace and Morfa coke oven in the area in early July this year. The closure of blast furnace 4 marks the end of Tata Steel UK, the UK’s largest steelmaker, from its main steel production activities at Port Talbot, leaving only a small hot and cold strip mill that rolls imported billets.
At the same time, the company plans to invest 1.25 billion pounds (about $1.64 billion) to build an electric furnace plant, and the British government will provide 500 million pounds (about $650 million) of financial support. The company plans to resume production by 2027-2028 to ensure a greener future. At the same time, the company announced that it will maintain more than 5,000 jobs while cutting 2,800 positions during the transition.
Tata Steel UK said that without the change, all of its steelmaking operations would come to an end. That’s because the company is currently losing £1 million (about $1.3 million) almost every day.
This has inevitably led to mass layoffs. Tata Steel UK said it had offered its most generous support package ever for departing staff, offering a comprehensive “voluntary redundancy scheme”. Any employee facing compulsory redundancy can opt to take part in a “retraining scheme” offered by Tata Steel UK.
Before the last blast furnace was shut down, Tata Steel UK warned local residents in advance that they would see huge amounts of steam rising from the top of the furnace, accompanied by a long “whooshing” sound. “It’s all part of standard procedure and there’s nothing to worry about. We will have experts monitoring every part of the process to make sure we shut down the blast furnace safely and smoothly.” The company made an announcement to the local public before shutting down the blast furnace.
The development of the plant area after the closure has been the subject of local debate. British trade unions have put forward different plans for Port Talbot, but both have been rejected by Tata Steel UK. At the time, the opposition Labor Party said the two sides could reach a better deal.
Roy Rickhuss, general secretary of the local Community Union, said: “The closure of the blast furnace is an incredible and sad day for the UK steel industry and the communities in and around Port Talbot. These communities are intricately related to blast furnaces and steelmaking. Maybe it shouldn’t be. Last year, the union issued a credible alternative plan for Port Talbot, capable of ensuring a smooth transition to ‘green steelmaking’ at Tata Steel UK and avoiding compulsory redundancies. However, Tata Steel UK’s rejection of the plan can be seen as a historic missed opportunity. The scheme offered by Tata Steel UK is of little comfort to those who are losing their jobs. We will do everything possible to support these workers, including by working with the Welsh government to open a jobs and skills support centre in the heart of Port Talbot.”
The closure of Tata Steel UK’s No. 4 blast furnace is a significant day not only for the British steel industry, but also for a town that has long relied on steel production. Faced with the challenges of BF shutdowns and mass unemployment, Tata Steel UK and the British government said that they are actively seeking solutions, and plan to occupy a favorable position in the future market competition through the construction of advanced electric furnaces and the development of the national steel industry strategy.
At present, the British steel industry is facing a complex market situation, high costs, oversupply in the global market, and market demand continues to decline. The complete closure of Tata Steel’s main production operations in the UK has inevitably led to pessimism among some locals who make their living in the steel industry. They believe that this is not just the closure of a blast furnace, but represents the end of Welsh steel manufacturing, which is a huge disaster for the British steel industry.
In early September, the UK government announced plans to publish a “future strategy” for British Steel in the spring of 2025. After the launch of this “future strategy”, can the future development of the British steel industry turn the tide and be reborn? Wait till we know.