Tata Steel and UK sign pact for biggest sectoral investment
The UK government has offered a £500 million support package to Tata Steel, owner of the Port Talbot Steelworks, to help move to greener production methods. The deal will safeguard the future of the steelworks and switch its coal-powered blast furnaces to electric arc versions, running on zero-carbon electricity. Tata Group is expected to inject £725 million into the project, creating a green technology-based industrial ecosystem in southern Wales.
Job losses expected amid Tata Steel's eco-friendly shift
Tata Steel's transition to greener production processes will result in approximately 3,000 job losses over the long term. The company employs around 8,000 workers in the UK, with half based at Port Talbot. Tata Steel CEO TV Narendran described the deal as the biggest investment in the UK steel industry for decades. However, he confirmed that job cuts would follow as the company aims to become a green, modern future-ready business.
GMB concerned over workers' future
The GMB (UK's trade union) has expressed concerns that the deal between Tata Steel and the UK government will have terrible consequences for the workers. Gary Smith, the general secretary of the GMB, said, "Thousands of workers, their families and communities will pay the price." The union has been asking for investment in the UK steel industry over the years but claims that the government delayed action until it is too late.
Tata Steel's £20 million investment in innovation centers
Tata Steel is also planning to spend £20 million over the next four years to establish two innovation and technology centers in Manchester and London. These centers will focus on research in sustainable designing and manufacturing, aiding the company's transition to cleaner production methods. The investment aims to transform Tata Steel into an eco-friendly and future-ready business.
