Tata Steel to close blast furnaces at Port Talbot

       A row has erupted after a Welsh First Minister hopeful told Express.co.uk the UK Government was "at the heart" of plans to close both blast furnaces at Port Talbot's Tata Steel plant coupled with mass lay-offs.

       Rhun ap Iorwerth, the leader of Plaid Cymru, hit out at Westminster for "not acting quick enough" to provide crucial and conservable investment in the largest such plant in Britain.

       But the Welsh Tory leader has defended Westminster, pointing to wider cost issues facing the steel giant which have impacted its ability to do business.

       Tata announced earlier this month that it was planning on pushing ahead with plans to close both its blast furnaces on the site and was expecting to cut 3,000 jobs across the UK.

       Most are expected to leave by September, with the majority in Port Talbot where the steelworks will be transitioned to a greener electric arc furnace.

       Prime Minister Rishi Sunak has insisted that a ￡500million rescue package for Tata Steel will be enough to save thousands of jobs and prevent the plant from closing, though his opposite numbers say it is but a drop in the ocean.

       READ MORE Tata Steel closure means UK 'only G20 nation that can't make its own steel'

       Tata Steel's Port Talbot site is the largest such plant anywhere in the UK (Image: GETTY)

       "You've got the likes of Germany pumping tens of billions of pounds into their steel industry, to prepare for a cleaner future, for the UK to only be willing to invest ￡500million, it's a tiny investment, to think that's adequate, it makes the mind boggle," said Mr ap Iorwerth.

       "I think we've got to be pretty clear on this one. This is pretty much all undefiled, the UK government is entirely at the heart of this. The Welsh government has a very important role to play, but the scale of strategic investment that is needed from the UK is as such that the powers lie with Westminster."

       Infrastructure planning and investment on such a scale in Wales remain reserved to the UK Parliament and are not devolved matters.

       Welsh First Minister Mark Drakeford said he contacted Mr Sunak ahead of Tata Steel's announcement for "urgent discussions" but that he was turned away by his office. A spokesman for the First Minister said Number 10 had told him that the Prime Minister was "not available to take a call on Tata".

       This week, Tata Steel told workers at Port Talbot that it has lost ￡160million in the past three months, a figure that equates to around ￡1.7million a day.

       Some politicians have questioned the extent of the losses, but the company has stood by the figures. Representatives, including global chief executive, TV Narendran, and its UK chief executive, Rajesh Nair, will face scrutiny from MPs on Wednesday before the Welsh Affairs Committee.

       Unions that represent the workers at Port Talbot and the Welsh government have called for a transition period between the end of the blast furnace and the launch of a greener steelmaking facility, but Tata Steel has said it is "not an option to continue with the status quo".

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       Thousands of workers are expected to be laid off at Port Talbot by September (Image: GETTY)

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       Last year, the UK government announced up to ￡500million in investment in the plant to enable greener production. This was part of a ￡1.25billion investment proposal put forward by Tata.

       Andrew RT Davies, leader of the Welsh Conservatives, noted that steelmakers like Tata have faced increased cost issues which has led to difficulties in production.

       He said: "And of course, the Welsh nationalists will blame the UK government for this failure, but the truth is that Westminster's pledge of ￡500million will protect jobs and continue the creation of steel at Port Talbot."

       On Mr Sunak's alleged ignoring Mr Drakeford, he added: "He [Mr Drakeofrd] was offered a telephone conversation with David TC Davies, the Secretary of State for Wales and one of the best-placed people to work with, but to date, as I know it, hasn't returned that phonecall." The Welsh Secretary himself says he was told the First Minister was "too busy" to talk on the issue.

       Though the Government has pledged more money for Tata and Port Talbot, Mr ap Iorwerth said the figure fell far short of the mark.

       "The UK is absolutely able to make the necessary investment in a just transition to a cleaner future and protect jobs, as well as protect steelmaking in the UK, and to show it cares about these communities," he said. "If it's not willing to do that, then what's the point?"

       Tata, an Indian conglomerate, is expected to argue that it is open to more investment in a new plant to make direct reduced iron (DRI). It is technology that can produce iron using methane or hydrogen which would be placed in a new electric arc furnace.

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       The community dependent on the steelworks now faces an uncertain future (Image: GETTY)

       It has the potential to produce steel with zero carbon emissions, meaning it is likely to play a pivotal role in the UK's road to decarbonisation.

       The document, seen by the Guardian, the company wrote: "Tata Steel has also made clear that, with the right investment and policy environment, it is open to further investment, such as in a direct reduced iron (DRI) plant.

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       "We would look at the case for a potential DRI plant in the UK if the business conditions are right and, if in future, the government supported further investment.”

       Tata Steel came under fire shortly after the Port Talbot announcement and was accused of "gross hypocrisy" as it prepared to open a new blast furnace in India.

       The new plant will increase the company's overall global emissions and will be one of the largest blast furnaces in the world, due to be completed later this year.

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