The company is firing a warning shot that the long-term future of steelmaking in Port Talbot would be at “significant risk” if the next government moves to force a U-turn on the closure of the remaining blast furnaces.
Tata Steel says it will press ahead with plans to return profitability to its Port Talbot steel plant regardless of who forms the next government.
The India-based company was responding to media reports that Labor hoped to engineer a turnaround at Britain’s largest steel mill if it were to win on July 4.
Tata all but confirmed this in April 2,800 roles would disappear in a transition from so-called new steel to greener steel.
Both labour-intensive blast furnaces would be shut down in September and soon replaced with cleaner electric arc technology, with an investment of £1.25 billion.
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It includes a £500 million government support package to support the transition and the wider local community who currently rely on the vast South Wales location for employment.
Tata said the long-term future of steel production at Port Talbot would be “significantly at risk” if the subsidy were withdrawn.
As unions continue to draw up plans for industrial action, the company said: “We would like to advise that (Tata Steel) confirms that it will proceed with the announced heavy asset closure and restructuring program at Port Talbot in the coming months.
“We urge the current and upcoming post-election government to adhere to the agreed terms of the £500 million support package for the Electric Arc Furnace (EAF) project announced in September 2023.
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“This project has been developed to ensure the production of high-quality, low-emission steel in Port Talbot, sustaining primary steel production in Britain and creating the potential for a future green manufacturing cluster in South Wales.
‘Port Talbot’s current heavy assets are approaching the end of their lives, are operationally unstable and are resulting in unsustainable financial losses.
“The coke ovens, a crucial facility for primary steel production, had to be closed in March 2024 as operations became unfeasible and unsafe.
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“The company is therefore forced to continue with its plans to decommission Blast Furnace #5 at the end of June, followed by the decommissioning of Blast Furnace #4 at the end of September.”
Tata estimates its financial losses at £1 million a day.
On Monday, senior Labor figures including Wales shadow secretary Jo Stevens urged Tata to wait for a possible Labor government next month so new talks can take place.
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During a visit to the Port Talbot plant, Ms Stevens called on the company to delay the closure of all blast furnaces and urged Tata to adopt a union plan to keep one furnace running while the transition to the production of green steel takes place.
“What we have been saying to Tata all along is: please don’t make irreversible decisions before the general election,” she said.
“We want them to take another look at the union plan, we want to talk to them. They know we have our green steel fund ready. That will be there to support Welsh steelworkers and steelworkers across the UK to ensure a smooth transition to carbon-free steel.”
Alasdair McDiarmid, deputy general secretary at the Community Union, said: “It would be wrong for Tata to make irreversible decisions before the election.
“Once again we urge the company to work with Labor and the unions to consider alternatives to protect jobs.”
Tata’s relations with the Community, Unite and GMB unions are tense as each has secured support for industrial action that could lead to strikes in the future.
Unite members will begin banning overtime and ‘work to rule’ in a week’s time.