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Tata Steel bosses face grilling in the Senedd over plans to cut up to 2,800 jobs

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REPRESENTATIVES of Tata steel faced a grilling by MSs over plans to cut up to 2,800 jobs.

Paul Davies, who chairs the Senedd’s economy committee, asked whether the decision to close the two blast furnaces and build an electric arc furnace is purely a financial one.

Along with the jobs at Port Talbot, around 300 jobs at the company’s Llawern plant could also go.

Rajesh Nair, chief executive of Tata Steel UK, said finances have played an important part but the decision is not purely monetary.

He told the committee the company’s assets in Port Talbot are reaching their end of life, compromising reliability, safety and timeliness of delivery.

Mr Nair, who has worked for the company for 25 years, said the business has been losing a tremendous amount of money over the past few years.

He said: “Just for the last quarter, the business turned a loss of about £160 million and in the first nine months of this financial year it’s about £330 million.

“We are likely to turn up with a loss of nearly half a billion in just one year – this is just not sustainable nor viable for any company to handle.”

Mr Nair suggested the multi-union Syndex plan, which involves keeping at least one of the blast furnaces, would add nearly £200 million to the cost and delay the electric arc furnace (EAF).

“We will not be in a position to build the EAF in an existing steel shop,” he said. “And if you don’t have a steel shop operating, there is no way the blast furnaces can be kept going.”

Asked if Tata would look at alternatives if the UK Government offered more money, Mr Nair said the company would be more than happy to examine additional investments.

He told committee members: “On the other side of the transformation, we will have a viable business – which the UK steel business has not been for the past 15 years.”

Hefin David pointed out that a General Election is on the horizon – and an incoming Labour UK Government could offer a significantly different package of support.

The Labour MS, who represents Caerphilly, asked whether Tata would consider delaying decisions on the second blast furnace until after the state of political flux is resolved.

Mr Nair stressed that there is an imperative to “get going” with the EAF, saying the company has had conversations with UK Labour leader Keir Sir Starmer.

He told the committee: “Managing the business in the existing set up is going to be a huge burden on the company and on the shareholders.

“I don’t think any government, Dr David, with due respect, would be willing to fund losses.”

Vikki Howells, the Labour MS for Cynon Valley, asked how the company has sought to minimise potential job losses and the wider impact on Port Talbot.

Mr Nair told committee members that the company has carefully considered the impact – not only on staff, but also on contractors and the community.

He added that a large part of the £1.25 billion investment will go into the Port Talbot ecosystem.

Chris Jaques – Tata Steel UK’s chief HR officer – recognised it is a difficult time, saying a transition board has been set up to look at short-term support and long-term regeneration.

He told Ms Howells that the business decided to continue operating the hot strip mill in Port Talbot following talks with trade unions, securing 200 jobs.

Mr Jaques said the statutory consultation, which began on February 2, will be for a minimum of 45 days and the company will seek to maximise the number of voluntary redundancies.

Business

Ferry Terminal ‘extremely busy’ due to ongoing Holyhead closure

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PEMBROKE DOCK Ferry Terminal has been experiencing significant congestion today as ferry services remain under immense pressure following the closure of Holyhead Port earlier this month.

The disruption, caused by storm damage, has rerouted ferry traffic through Pembrokeshire, leading to long queues and crowded facilities at the terminal.

The Herald can confirm that it has been very busy today with cars, lorries, and foot passengers queuing in large numbers. Staff are working tirelessly to manage the influx, directing vehicles and assisting passengers as they prepare to board the heavily booked ferries.

A spokesperson for the Port of Milford Haven said: “We are working closely with ferry operators and local authorities to ensure traffic flows as smoothly as possible, but the sheer volume of vehicles is causing unavoidable delays.”

Travelers are being urged to arrive early for their sailings and to remain patient as the terminal operates at full capacity.

Both Stena Line and Irish Ferries have increased capacity on their Pembrokeshire routes, deploying larger vessels, including the Stena Adventurer and the MV James Joyce, to handle the surge in demand.

From our position at the terminal, our photographer has captured photos showing long lines of vehicles, groups of foot passengers carrying luggage, and port staff coordinating efforts to ease congestion.

Authorities are advising non-essential travelers to consider rescheduling their journeys where possible and to monitor updates from ferry operators closely.

(Photos: Martin Cavaney/Herald)

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52 homes to be built in Roch as scheme gets final sign-off

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THE FINAL stage of approval for a near-£10m Pembrokeshire residential development of 52 homes has been given the go-ahead.

Back in April, members of Pembrokeshire County Council’s planning committee backed an application by Wakefield Pembrokeshire Ltd for the development, which includes four one-bed affordable housing units, on land near Pilgrims Way, Roch.

18 objections to the scheme were received, raising concerns including an “inadequate” affordable housing level, it being a high density development for a rural area, a loss of green space, the size of some of the homes, and pressures on existing services and facilities, and fears it may lead to an increase in second homes.

Nolton & Roch Community Land Trust (N&RCLT) has raised its concerns about a lack of affordable homes at the development, calling for a 20 per cent affordable homes element, as recommended by policy.

An officer report for members, recommending conditional approval, said: “It is apparent that the proposed development is not fully policy compliant, insofar as it cannot deliver the indicative 20 per cent affordable housing sought [by policy].

“However, a substantial positive social impact will arise through the provision of housing, including four one-bed affordable housing units, in meeting identified needs for both market and affordable housing.

“Financial obligations identified to mitigate adverse impacts arising from the proposed development cannot be met in full. However, [policy] acknowledges that in such circumstances contributions may be prioritised on the basis of the individual circumstances of each case.”

Speaking at the meeting, agent Gethin Beynon said the project had a “significant economic value” of around £10m, and the local applicant had “a sense of stewardship to the local community,” offering affordable housing and community infrastructure towards highways and education.

Approval was delegated to the council’s head of planning to approve the application, subject to the completion of a Section 106 planning obligation, making community financial contributions.

The Section 106 agreement was recently agreed, with the application now formally approved.

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Business

World of engineering and welding SPARCs interest in Ysgol Harri Tudur’s female learners

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AN EVENT hosted by Ledwood Engineering gave girls from Year 8 and 9 at Ysgol Harri Tudur first-hand experience of the world of engineering recently. 

Engineering is a booming sector in Pembrokeshire with a high demand for skilled workers in exciting career pathways associated with the development of low carbon and renewable energy industry and the Celtic Freeport. 

The young women heard from industry experts on the importance of engineering in Pembrokeshire, and had hands on experience using a welding simulator, at the company’s Pembroke Dock site. 

The learners are part of the County’s SPARC (Sustainable Power and Renewable Construction) initiative aimed as inspiring and empowering young females to consider careers in science, technology, engineering and mathematics (STEM) pathways where females are under-represented in the workforce. 

SPARC is funded through an alliance comprising Blue Gem Wind, Ledwood Engineering, Port of Milford Haven, RWE Renewables, Pembrokeshire County Council, Pembrokeshire College and the Swansea Bay City Deal. 

Mrs Laura Buckingham, SPARC practitioner at Ysgol Harri Tudur said: “Our learners had a fantastic experience at Ledwood Engineering.  They were given lots of advice by industry experts on the different career options and pathways within the engineering sector.  

“They appreciated the opportunity to ask their questions and found the session very informative. Having the chance to trial their welding skills on the simulator was an experience they continue to talk about and has definitely piqued their interest.”

Poppy Sawyer, Year 8 SPARC learner added:  ‘It was a really good trip. Talking to the different people there has helped me know more about the jobs we could get which will be very useful when making choices for my future.”  

 “They helped us a lot by giving us lots of information. We were able to look around and try welding. It was really fun,” added Tianna Marshall, Year 8 SPARC learner.

The Regional Learning and Skills Partnership also launched its Explore Engineering interactive website at the event.

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