The UK government has released GBP13.5 million (USD17.5 million) to support supply chain businesses and workers impacted by Tata Steel’s decision to transition to greener steelmaking at Port Talbot.
Tata Steel will close its final blast furnace at the port in September, replacing it with an arc furnace. The new steelmaking equipment is less energy and labour intensive and its installation is expected to result in the loss of nearly 3,000 jobs in the area.
The aforementioned funding is the first release from the Tata Steel / Port Talbot Transition Board fund, which looks to support local businesses that are heavily reliant on Tata Steel as a customer. Furthermore, financial support will be available to workers to find new jobs, access training and gain skills and qualifications in areas where there are vacancies. This comes as the company plans to close its second blast furnace in September.
Over 50 businesses have signed a pledge to support any workers forced to leave their jobs in the steelworks. This will include guaranteed interviews for anyone made redundant to providing training and coaching.
Business and trade secretary, Jonathan Reynolds, said: “We’re working in partnership with trade unions and industry to secure a green steel transition that’s right for the economy, our talented workforce and local communities for generations to come, and our negotiations with Tata remain ongoing.”
In March, the Department of Energy Security and Net Zero decided to advance the Associated British Ports (ABP) Future Port Talbot project to the primary list phase of the Floating Offshore Wind Manufacturing Investment Scheme (FLOWMIS).
The project would see the port transformed into a major hub for the manufacturing, assembly and integration of floating offshore wind (FLOW) components for projects in the Celtic Sea. The plan also includes the port being able to serve as a centre for a wider network of ports across South Wales and the South West.
