11 October 2024
Corporate News

A Bright Future for Steel: Tata Steel UK’s Asks of the Labour Government

Transfer cooling bar

As the dust settles on this summer’s general election, Tata Steel UK has been revamping its policy asks of the new Labour Government – who continue to commit themselves as the party of business.   

Since coming to power for the first time in 14 years, the Labour Government has made steel one of its priorities.  

In September they signed-off a Grant Funding Agreement with Tata Steel, allowing the steelmaker to proceed with its plan to invest £1.25bn in a state of the art electric arc furnace (EAF) at the site in Port Talbot, inclusive of £500mn in Government funding.  

Further commitments have been made regarding an Industrial Strategy and a Steel Strategy, which aims to support the industry’s transition to greener technologies, whilst also creating confidence and incentivising inward investment.  

Despite this, further commitments are needed with regards to a wide range of key policy areas.  

As Tata Steel UK looks towards its future and green steel production via an EAF, expected to be operational by the end of 2027 subject to the relevant planning and regulatory approvals, it has mapped out its key asks of the Government to ensure that that the UK steel industry thrives within a competitive and forward-looking environment.  

In its most recent policy briefing, published today, Tata Steel UK is urging the UK Government to:

  1. Partner with the steel industry to capitalise on the opportunities offered by the future growth of UK manufacturing
  2. Address UK industry’s high energy costs
  3. Resolve the threat of carbon leakage and secure the UK’s carbon border
  4. Place scrap steel at the heart of the green, circular economy
  5. Ensure the UK is protected from global steel overcapacity
  6. Support UK Steel producers through increased public procurement
  7. Put UK steel at the heart of the green economy  

Commenting on the briefing document, Head of Public Affairs and Community Tom Evans said: “This Government has several challenges to address in order to create a sustainable future environment for the UK steel industry.

“Tata Steel has long pushed for a clear and strong industrial strategy that encourages investment, growth and competitiveness in the UK. 

"We are urging the Government to consider our key policy asks, alongside those of our partners in the sector, to create a sustainable steel industry that can support with the growth of renewable energy, domestic manufacturing and employment across Wales and the UK.”

Access the policy briefing in full here.

A roll of coiled steel leaves the coil box on the steel production line of Tata Steel, Port Talbot Steel Works, 15 August 2023...GEOFF CADDICK- AFP PHOTO

 

About Tata Steel UK
  • The Tata Steel Group has been named one of the most ethical companies in the world, and is among the top producing global steel companies with an annual crude steel capacity of 34 million tonnes.
  • Tata Steel in the UK has the ambition to produce net-zero steel by 2045 at the latest, and to have reduced 30% of its CO2 emissions by 2030.
  • In October 2024, Tata Steel ceased ironmaking at its Port Talbot site and temporarily paused steelmaking pending the construction of a 3.2Mtpa Electric Arc Furnace, due to be commissioned late in 2027 / early 2028. For that period, the business will import slab and hot rolled coil to support manufacturing and distribution operations at sites across Wales, England and Northern Ireland as well as Norway, Sweden, France, Germany and UAE. It also benefits from a network of sales offices around the world.
  • Throughout 2024 Tata Steel UK has been undergoing a restructuring that will reduce the size of its workforce to around 5000 direct employees, supplying high-quality steel products to demanding markets, including construction and infrastructure, automotive, packaging and engineering.
  • Tata Steel Group is one of the world's most geographically-diversified steel producers, with operations and a commercial presence across the world.
  • The group recorded a consolidated turnover of around US$27.7 billion in the financial year ending March 31, 2024.
     
Categories
Corporate
Sustainability
For further information
Related links