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Tata Steel’s Indian expansion sparks controversy amid Welsh job cuts

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IN a move that has stirred allegations of ‘gross hypocrisy’, Tata Steel is on the brink of inaugurating a new blast furnace in India, while simultaneously shutting down two furnaces in Port Talbot, citing environmental concerns—a decision costing up to 2,800 Welsh jobs.

Last week, Tata announced its plan to replace Port Talbot’s two major blast furnaces with an electric arc furnace, leading to significant job reductions. Union leaders, speaking to the Guardian, have highlighted the contradiction in Tata’s actions, especially with their near-completion project of erecting a massive blast furnace at Kalinganagar, India.

The job cuts have heightened tensions, with steelworkers arguing for more government support for domestic manufacturing. Protests erupted outside Westminster on Tuesday, and the Labour party is pushing for a parliamentary vote on the future of Britain’s steel industry.

Environmental Concerns vs. Global Expansion

Tata Steel claims the Port Talbot overhaul will maintain the UK’s steel self-sufficiency and significantly reduce CO2 emissions. However, the new Kalinganagar furnace, one of the world’s largest, could increase Tata’s global emissions, raising questions about the company’s environmental commitment.

Sharon Graham, Unite’s general secretary, criticises Tata’s actions in India, calling out the disparity between their claims and actions. Charlotte Brumpton-Childs from GMB echoes this sentiment, labeling the transition as a ploy benefitting foreign entities at the cost of local workers.

The Story of Kalinganagar

Kalinganagar, transformed into a steel hub amid tribal resistance, stands as a critical asset in Tata’s portfolio. The site’s history, marred by conflict over land rights and environmental concerns, provides a stark contrast to the situation in Wales.

A Tata Steel spokesperson emphasises their decision’s difficulty, advocating scrap-based steelmaking as a suitable path for the UK, considering its scrap steel abundance and renewable energy progress.

As Britain’s steel industry faces challenges from cheaper imports and energy costs, the shift to electric arc furnace technology, though less labor-intensive, marks a new chapter in the industry’s evolution.

The unfolding scenario at Tata Steel serves as a microcosm of the broader challenges facing the global steel industry – balancing economic growth with environmental responsibility and the impact on local communities.

Business

Tata Steel Sticks to job cut plans despite Welsh pressure

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IN an intense and pivotal meeting in Mumbai, Tata Steel firmly reiterated its decision to cut 2,800 jobs in the UK, primarily impacting the Port Talbot site, despite urgent appeals from Welsh First Minister Vaughan Gething. Mr. Gething, who recently met with senior executives, expressed his disappointment at the firm’s unwavering stance unless there’s a shift in the UK government.

Despite these challenging circumstances, the First Minister underscored his commitment to protect jobs and prevent compulsory redundancies across Welsh sites. This dialogue comes as Tata plans to close both blast furnaces at Port Talbot by September, replacing them with a greener electric arc furnace by summer 2025, which promises to preserve thousands of jobs and reduce CO2 emissions significantly.

The Welsh Conservative leader, Andrew RT Davies, criticised Mr. Gething’s approach, suggesting that while the UK government has offered substantial financial aid, the Welsh government has only funded the First Minister’s travel to India. He accused Mr. Gething of “globetrotting” at a time of domestic scrutiny over controversial donations to his Welsh Labour leadership campaign.

Mr. Gething defended his trip, stating, “How can I sit at home and not be here in Mumbai, fighting for thousands of workers’ jobs?” He highlighted the potential of a change in leadership, with UK Labour leader Sir Keir Starmer poised to possibly become the next Prime Minister, which he believes could usher in a new era of capital investment for the steel industry.

Amid the uncertainty of an upcoming general election, possibly scheduled between October and January, there is concern that any governmental changes may arrive too late to alter Tata’s current trajectory. Tata CEO TV Narendran described the discussions as productive but maintained the company’s strategic direction, emphasizing their commitment to a sustainable future in the UK steel industry.

The GMB union and members of the Community steelworkers’ union have voiced strong opposition, with recent votes favouring industrial action against the restructuring plans. Plaid Cymru’s economy spokesman, Luke Fletcher, has called for the nationalisation of the steel industry, labeling Tata’s current worker treatment as “appalling.”

Meanwhile, both parties acknowledged areas of mutual benefit, such as potential investments around Port Talbot and collaborations with Welsh universities on green steel production. The First Minister also highlighted opportunities linked to the Global Centre of Rail Excellence near Neath, with Tata considering a formal agreement.

As Mr. Gething returns from Mumbai, the situation remains tense, with the future of many steelworkers hanging in the balance and the Welsh and UK governments at odds over the best course of action to mitigate job losses and transition to sustainable steel production.

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Business

Port welcomes first vessel to new workboat pontoons

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PEMBROKE PORT, which is owned and operated by the Port of Milford Haven, has welcomed the first customer to its new workboat pontoons. Installed as part of the Pembroke Dock Marine project to modernise the Port’s infrastructure, the pontoons are available for use by a range of vessels including workboats, barges and other small vessels.

CRC Sentinel, a dive support vessel owned by Commercial Rib Charter which is undertaking work on the Milford Haven Waterway, was the first to use the new pontoons.

Sharon Adams, Commercial Manager for Pembroke Port commented: “It’s great to see these new assets being utilised. Pembroke Port is perfectly positioned within the Port of Milford Haven to act as a hub for operations associated with marine activity taking place within the Port and the Celtic Sea. The pontoons are available for short and long term berthing and have secure access, as well as electricity and water hook ups.

The workboat pontoons compliment the other infrastructure upgrades we made as part of the Pembroke Dock Marine project including new laydown space and an expanded slipway.

We look forward to working with our existing customers, and welcoming new ones, to use the new facilities at Pembroke Port.”

The new infrastructure at Pembroke Port forms part of the Pembroke Dock Marine project to create a world-class energy and engineering centre of excellence and act as a focal point for capturing the economic value from wind, wave, and tidal renewable energy projects.

Alongside the Port’s own investment, Pembroke Dock Marine – a Swansea Bay City Deal project – is part funded by the UK Government and the European Regional Development Fund through the Welsh Government as well as other private sector partners.

During construction, the project supported over 50 jobs including 6 apprenticeships. Contractors BAM, Walters Group and R&M Williams undertook community activity during the project, with the local community benefiting from over £11m local spend.

For further details on the facilities at Pembroke Port, and how the Pembroke Dock Marine investments have readied Pembroke Port for future energy, please visit www.pembrokeport.com.

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Business

Last Call for Entries: Carmarthenshire Business Awards

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BUSINESSES throughout Carmarthenshire are urged to submit their nominations for the prestigious Carmarthenshire Business Awards as the deadline of 17th May 2024 rapidly approaches.

Organised by Grapevine Event Management, these awards are set to recognise and celebrate the outstanding contributions and achievements of local enterprises across a variety of sectors. With the nomination process ending in less than two weeks, businesses and individuals from across the county are invited to take advantage of the opportunity for recognition by entering one of the 15 award categories.

The winners will be unveiled during a glamorous black-tie event at Parc y Scarlets on 12th July, attended by the crème de la crème of Carmarthenshire’s business community.

Liz Brookes, the founder of the awards and director at Grapevine Event Management, expressed her enthusiasm about the high quality of entries received so far. “We are thrilled with the response and the calibre of organisations that have entered. This is the final call for entries; it’s time to ensure your business and its contributions are recognised,” she stated.

Rupert Moon, chair of the judges, highlighted the significance of the awards in promoting local businesses. “Carmarthenshire boasts a range of fantastic businesses. These awards are not just a celebration but a platform to highlight significant achievements in innovation, sustainability, growth, and export success among others,” Moon commented.

Support for the event is strong, with notable local companies such as Castell Howell Ltd leading as headline sponsors. “Supporting local business is essential for Carmarthenshire’s prosperity. These awards are a fantastic opportunity for businesses to gain the recognition they deserve,” said Martin Jones, Director of Castell Howell.

Additional sponsors include Swansea Building Society, Dunbia, Azets, JCP Solicitors, JG HR Solutions Ltd, Business News Wales, and Stills, all contributing to the event’s success.

For more information on how to enter the Carmarthenshire Business Awards, or to register before the 17th May deadline, please visit https://carmsbusinessawards.com/.

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