Mining firm Tata Steel said it will initiate transformation and restructuring of its UK business, by initially laying off about 2,500 job positions across the region in the next 18 months.
The company said the job cuts will affect an additional termination of 300 roles after the initial round of layoffs, affecting an overall 2,800 employees of Tata Steel. The transition aims to reverse the losses that occurred in the past decade and transition from traditional furnaces to a sustainable, green steel business, added the company.
The Indian-grown firm said this new transition would secure its UK division’s existing product capability and maintain the country’s self-sufficiency in steelmaking as well as reducing CO2 emissions by 5 million tonnes per year and overall, UK country emissions by about 1.5%.
The firm said it plans to invest about $1.60 billion in electric arc furnace technology for its Port Talbot and asset upgrades to secure better production at the UK’s steelmaker. This investment is supported by the UK Government which has committed up to £500 million ($635.4 million) to enable the transformation.
The steelmaker has over 77,000 employees with the company, based on its recent annual report.
Steelmaker said along with the UK and Welsh governments established a transition board to support affected employees, contractor employees, and their communities, with £100 million in funding for short-term support and long-term economic regeneration.
“Our ambitious plan includes the largest capital expenditure in UK steel production in more than a decade, guaranteeing long-term, high-quality steel production in the UK and transforming the Port Talbot facility into one of Europe’s premier centres for green steelmaking,” said T V Narendran, Executive Chief of Tata Steel.
The steelmaker has over 77,000 employees with the company, based on its recent annual report.
