Tata Steel, India’s largest steel producer, has announced the inevitability of job losses affecting 2,500 workers in the UK as part of the company’s transition towards greener steelmaking practices. This decision has sparked criticism and ongoing protests from workers’ unions.
Tata Steel, which employs around 8,000 people in the UK, aims to switch from blast furnace operations to electric arc furnace technology to reduce carbon emissions. CEO T V Narendran emphasized that the transition, supported by UK government aid, will enhance the company’s competitiveness and contribute to a significant reduction in CO2 emissions.
Despite these benefits, job losses remain a significant concern for unions. Narendran acknowledged the unions’ concerns and stated that the company is engaging in discussions to ensure a smooth transition. He emphasized that the move to electric arc furnace production is crucial for Tata Steel to remain competitive and reduce its environmental impact.
The transition to green steelmaking involves the closure of coke ovens and blast furnaces. One blast furnace will close in June due to operational challenges, while the second will close in September for asset quality and financial reasons. The company believes that utilizing steel scrap, which is abundant in the UK, will make steel production more cost-effective and environmentally friendly.
Tata Steel aims to complete the decarbonization journey at its UK plant within the next three years. The company reported a significant decline in its consolidated net profit for the January-March quarter of 2023-24, attributed to lower realizations and exceptional expenses.
