close
close
mathshare

Tata Steel: Labour working on better deal for Port Talbot, says MP

Pirineus
Tata Steel: Labour working on better deal for Port Talbot, says MP

Image subtitle, Thousands of workers at risk of losing their jobs in Port Talbot

  • Author, Shelley Phelps
  • Paper, Westminster Correspondent

The new Labour government is working on a better deal for the Port Talbot steelworks, according to a senior Welsh Labour MP.

The previous Conservative government agreed a £500m rescue package to help keep the plant open and switch to greener production methods, but as part of this Tata Steel said 2,800 UK jobs would be lost.

Rhondda and Ogmore MP Sir Chris Bryant said he was “hopeful” ministers in Cardiff and Westminster could reach a deal with the company to save jobs.

Tata responded to Labour’s election victory by saying it would “engage with new ministers on our ambitious plans to invest in and transform Port Talbot”.

Sir Chris said: “We need to make sure that Tata does not make any sudden moves that would make it impossible for us to undo what was a terrible deal, which was originally agreed by the Conservative government.

“The job of politicians is to try to make the impossible possible and that is exactly what we will try to do here.

“Every muscle will be stretched to try to ensure that we work as one government, the Welsh Government working with the Westminster Government, to try to deliver the best jobs possible and preserve as many jobs as possible.

“Because it’s not just about the people who work for Tata Steel. It’s about the entire economy in that region.”

Tata Steel UK chief Rajesh Nair said he was looking forward to working with the UK government on increasing green steel production.

“We will be talking to new ministers about our ambitious plans to invest in and transform Port Talbot with electric arc furnace steelmaking and supporting our workers through this necessary but difficult transition,” he said.

One of the steel mill’s furnaces was shut down last Friday and a second will be shut down in September.

This will end Port Talbot’s ability to produce liquid iron from ore.

The company said the Port Talbot blast furnace operation was generating losses of £1 million a day and was financially unsustainable.

Tata has been in talks with unions since January, when it unveiled plans to radically transform its operations to address its financial losses and reduce carbon emissions.

The project was called a “devastating blow” and the “worst-case scenario” by unions.

Related Posts