The UK government recently announced support for those affected by Tata Steel UK’s decarbonisation process with the release of an initial £13.5 million, also available to affected workers for them to retrain or acquire new skills for the employment market.
The Port Talbot Transition Board in Wales met for the second time this month under the new Labour government chair, Welsh Secretary Jo Stevens, which led to the announcement to support supply chain businesses and workers affected by Tata Steel UK’s decision to transition to greener steelmaking and a more sustainable business.
The funding is the first release from the government's £80 million contribution to the Transition Board fund, which will support local businesses that are heavily reliant on Tata Steel as their primary customer, allowing them to turn towards new markets and customers where necessary.
Stevens said: “Steelmaking is the lifeblood of communities in Wales, but so too is the support of local businesses. What they are offering will make a real difference to suppliers and staff.
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“Negotiations with Tata Steel on the future of the [Port Talbot] site will continue separately. But this government will not wait for a crisis to overtake us before acting. We are putting a safety net in place now to ensure we can back workers and businesses, whatever happens,”
The Board also announced that more than 50 businesses so far have signed a pledge to support any workers who leave their jobs in the steelworks. The businesses, which include Fintech Wales, The Royal Mint, Cardiff Metropolitan University, RWE Energy, Ledwood Mechanical Engineering and Pro Steel Engineering, have committed practical support for workers ranging from guaranteed interviews, to providing training and coaching.
Tata Steel UK CEO Rajesh Nair said: “The Transition Board plays a very important role in supporting the transformation of our business to low-CO2 steelmaking and encouraging regeneration and inward investment to the area, whilst helping to mitigate the impacts those changes may have on our people, our supply chain and our communities.
“The Transition Board has been set up to support both Tata Steel employees and those in local supply chain companies, so today’s announcement and the ambition to help the region and local communities grow in line with the changing needs of the developing industrial ecosystem here in South Wales, is very much welcomed.”
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Tata Steel, a Mumbai-headquartered steel giant part of the Tata Group, announced proposals in September 2023 to invest £1.25 billion, including a UK government grant worth up to £500 million, to enable greener steel production at Port Talbot in South Wales. A Transition Board to support the people, businesses and communities affected by the proposed transition to low-CO₂ steelmaking, was established in October 2023.
*Info: Tata Steel Europe