Tata Steel to stop operations of coke ovens at Port Talbot plant

Coke ovens are manufacturing plants or blast furnaces for making coking coal, a key raw material in steelmaking

Tata Steel has decided to cease operations of the coke ovens at its Port Talbot plant in Wales, UK, the company said on Monday.

In a regulatory filing, the company said the decision followed a deterioration of operational stability. Tata Steel UK will increase imports of coke to offset the impact of the coke oven closures.

The move is part of Tata Steel’s transition from an emission-intensive blast furnace technology to low-carbon steelmaking through the electric arc furnace route.

The company said it had previously stated that many of its heavy-end assets in Port Talbot are at their end-of-life capability.

 

On January 19, Tata Steel announced the closure of Port Talbot’s two blast furnaces and coke ovens, following consideration of an alternative proposal from the UK trade unions’ representative body and their advisor.

The company agreed to adopt parts of it but said that continued blast furnace operation was neither feasible nor affordable. The transition was expected to result in up to 2,800 potential job losses across the businesses.

Tata Steel today said that it is in advanced consultations with US trade unions on its proposal for the planned restructuring plan. This involves closing the iron and steelmaking assets at Port Talbot, and subsequent transition to sustainable low-CO2 steelmaking. The plan involves a £1.25 billion investment in electric arc furnace technology in Port Talbot and asset upgrades.

Of the £1.25 billion investment, the UK government has committed £500 million to enable the transition, and Tata Steel plans to invest £750 million.