Tata Steel Secures £500M Grant for Green Steel

12 Sep 2024 , 10:32 AM

Tata Steel secured a £500-million grant from the UK government for its green steel project at Port Talbot.

Tata Steel plans to replace blast furnaces with electric ones to process recycled steel, aiming to reduce carbon emissions. This shift will lead to a reduction of 2,800 jobs due to the lower workforce needed for electric furnaces.

The company announced a generous support package for affected employees, including voluntary redundancy, re-skilling opportunities, and cross-matching for other roles. Specific details are yet to be disclosed.

The voluntary redundancy package includes a minimum payout of £15,000 for full-time employees, a £5,000 retention bonus, and fully funded training programs to aid in their transition to new roles.

The new electric furnace is expected to reduce the UK’s industrial carbon emissions by 8% and Port Talbot’s by 90%. It is expected to be operational within three years.

The deal followed extensive negotiations with the new Labour government, which pushed for stronger worker support than initially proposed by the previous Conservative administration.