Business
Ministers approve £500m Tata Steel subsidy but Tories say it ‘falls short’
MINISTERS have confirmed an agreement providing Tata Steel with a £500 million grant towards its transition to electric arc furnace technology. The announcement comes as Tata Steel prepares to phase out its blast furnace operations at Port Talbot, one of the UK’s largest steelworks.
The switch to electric arc furnaces, which melt scrap steel, is part of a broader effort to reduce carbon emissions and modernise the UK’s steelmaking industry. The £500 million grant was initially approved by the previous Conservative government, and Labour has pledged to honour the commitment. The formal announcement is expected in the House of Commons later this week.
The transition will bring significant changes to the workforce at Port Talbot. Approximately 2,500 workers are facing redundancy, with an additional 300 jobs expected to be cut in the future. Despite this, Tata Steel and unions have agreed on a memorandum of understanding (MoU) that could see further investments in the facility, including the development of a steel plate production plant for offshore wind turbines.
First Minister Eluned Morgan said: “I welcome today’s funding announcement. The Welsh Government stands shoulder-to-shoulder with the UK Government in doing all we can to support workers at Tata Steel and provide a new future for steel production in Wales.
“In what continues to be an incredibly unsettling situation for many, we will continue to work with all parties to ensure that workers, suppliers and the wider community are supported as the industry transitions to making the green steel that will be vital to the future of the UK economy.”
But Welsh Conservative Shadow Economy and Energy Minister, Samuel Kurtz MS, from Pembrokeshire, said: “The Labour UK Government has been disingenuous with their promises to the people of Wales and fallen short with their new offer, putting steelworker jobs at risk.
“Unfortunately, there is no new money yet allocated by the Labour Government that promised much more during the election campaign.
“The new terms also risk future job losses by threatening the withdrawal of this vital support package agreed by the Conservative Government. This is wrong. The priority should always be protecting the livelihoods and the futures of our steel communities.”
Union sources have confirmed that the MoU includes assurances for the company’s other Welsh sites, such as Llanwern, Trostre, and Shotton, as well as commitments to explore new steel plate technology. This potential new facility in Port Talbot could play a vital role in the UK’s burgeoning offshore wind industry.
Gareth Stace, director general of UK Steel, emphasised the need for competitive electricity prices to support the transition to electric arc furnace technology. “As the steel sector in the UK moves to fully electric arc furnaces, and therefore using an enormous amount of electricity, having competitively priced electricity is critical to the success of our future,” said Mr Stace.
The UK government has introduced schemes to reduce energy costs for major industries like steel, but Stace argued that more needs to be done to bring prices in line with European competitors in France and Germany. He also called on the government to use some of its £2.5 billion steel support fund to help lower electricity costs for producers like Tata Steel.
UK Steel has also urged the government to increase its use of domestically produced steel for major infrastructure projects, reducing reliance on imports. Mr Stace noted that the UK must make investments in facilities like a wide-gauge heavy plate mill to ensure the industry can meet future demands, particularly from the offshore wind sector.
A spokesperson for the Department for Business and Trade said the government was committed to supporting the UK steel industry through its British Industry Supercharger scheme and the recently established Great British Energy initiative, aimed at accelerating the shift to clean energy.
“We’re working in partnership with trade unions and businesses to secure a green steel transition that’s right for the workforce and safeguards the future of the steel industry in Britain,” the spokesperson said. They also reaffirmed the government’s £2.5 billion investment commitment to rebuilding the UK steel industry and supporting affected communities.
Labour’s commitment to honour the previous government’s grant has been welcomed by unions and industry leaders. However, Welsh Conservatives have criticised Labour for taking too long to confirm the funding. Shadow Welsh Secretary Lord Davies of Gower called on the government to expedite financial aid to affected workers.
As Tata Steel and the government navigate the challenges of decarbonising the steel industry, the Port Talbot steelworks remains a focal point of the UK’s industrial future, with both environmental and economic implications at stake.
A joint statement from the Community and GMB trade unions was released on Wednesday, and reads as follows: “This deal is not something to celebrate, but – with the improvements the unions and the Government have negotiated – it is better than the devastating plan announced by Tata and the Tories back in September 2023. Through the MOU discussions the unions were able to secure concessions including a comprehensive skills and retention programme, and extensive investment commitments. We welcome the Labour Government’s intervention which has served to strengthen and lock down the terms of the MOU.
“Clearly this is not where we wanted to be, and we know that a better plan was available. Back in November last year, Community and GMB published the Multi-Union Plan, an alternative approach that would have safeguarded Port Talbot steelmaking and secured a just transition for the workforce. Regretfully we couldn’t secure the support of all stakeholders for our credible alternative decarbonisation strategy, and ultimately the company rejected the basis of our proposals, representing a tragic missed opportunity.
“Under the circumstances representatives of all the steel unions resolved to negotiate the best possible deal, and then put it to a ballot of the membership. This is what we have done, and voting is underway. Our members will decide whether or not to accept the MOU, and the next steps we take together will be informed by the outcome of the ballots.
“Going forward the Government must review existing policies and do everything in its power to ensure that decarbonisation does not mean deindustrialisation – you can’t build a greener economy without a healthy steel industry.”
Responding to the government’s announcement of its deal with Tata Steel, Paul Morozzo, senior campaigner at Greenpeace UK, said: “This is an improvement on the previous government’s proposals but unfortunately it doesn’t yet do enough to protect jobs and this country’s ability to produce green steel.
“We urge the government to heed the warnings of the past and invest fully in industries of the future. Tackling the climate crisis presents a huge opportunity to create good sustainable jobs, unlocking new economic opportunities for communities all over the country.
“Proper investment in UK green steel production would help our renewable energy supply chain whilst supporting workers and communities in places like Port Talbot and Scunthorpe, rather than having to rely on polluting imported steel to build wind turbines.
“Climate justice and worker justice must go hand in hand so that we can all experience the huge benefits of the transition to renewable energy.”
Business
Council denies responsibility for The Range store’s snub of Haverfordwest
THIS week Pembrokeshire County Council has refuted claims circulating on social media that it was responsible for The Range’s decision not to open a store in the former Wilko unit in Haverfordwest.
The rumors, which gained traction on Facebook this week, suggested that the discount retailer pulled out due to issues related to car parking charges in the nearby Perrots Road car park.
A council spokesperson addressed the situation, on Wednesday (Sept 18) telling The Herald: “There is absolutely no truth in the rumour that The Range decided not to take on the former Wilko store in Haverfordwest due to car parking charges in the nearby Perrots Road car park. The Council is unaware of where this rumour has come from.”
This statement comes in response to a flurry of social media activity, where several residents expressed their disappointment and frustration. One user, Stephen Hughes, sparked conversation with a post claiming, “Range wanted to go to Wilko and the council refused free parking at Haverfordwest absolutely shocking.” The post received multiple comments, reflecting the growing frustration among the community.
Chris Wilson said: “The council seemed determined to wreck Haverfordwest,” while Julie McIntosh added, “OMG we will never have them now.”
These sentiments echo a broader dissatisfaction with the current state of the Haverfordwest town centre.
The council, however, has made it clear that The Range’s decision was independent of any car parking policies. “While The Range ultimately decided not to proceed, the Council is currently in detailed discussions with a prospective tenant for the unit and very much hope to have the building brought back into use as soon as possible,” the spokesperson added.
The speculation on social media highlights the ongoing concerns about the town’s retail prospects and the council’s role in facilitating or hindering economic development.
Recent reports indicate that The Range is expanding in the UK, with five new branches opening by Christmas in locations such as Walkden, Cwmbran, Leamington Spa, Chelmsford, and Oswestry.
Additionally, The Range’s parent company, CDS Superstores, has announced plans to reopen up to 300 Wilko stores after acquiring the brand, with five concept stores expected to open by Christmas 2024
Despite Haverfordwest now being off the list, it remains to be seen how the situation will unfold and whether the prospective tenant will bring a new chapter to Haverfordwest’s retail scene.
Business
Recruitment drive for Ledwood as company looks to fill 40 roles
A PEMBROKE DOCK-based engineering, fabrication and construction company is recruiting with up to 40 role available.
Ledwood has launched the recruitment drive as it prepares to scale-up the delivery of key projects throughout the UK.
All required for client projects in the energy production and processing industries are welders, mechanical fitters, pipe fitters, riggers and platers.
Schemes include South Hook and Valero in Pembroke Dock, Hinkley Point C in Somerset, the Fawley TAR turnaround project in Southampton and the VINCI joint venture (EVT) project at Isle of Grain in Kent.
Nick Revell, managing director of Ledwood Mechanical Engineering, said: “With an extensive fabrication facility at Pembroke Dock, we deliver complex engineering projects throughout the UK. Unprecedented demand means that we now have vacancies for both qualified personnel and those looking for apprenticeships. We hope these opportunities will be of interest to those seeking new careers, particularly given the demise of Tata Steel in Port Talbot, and would also like to hear from anyone looking for an apprenticeship.”
Ledwood specialises in the delivery of complex projects in the process and energy sectors.
Business
ECITB welcomes new Chair for the Wales Regional Forum
ALTRAD’S Mark Poole has been appointed Chair of the ECITB Wales Regional Forum and a Council Member after approval by the Board of the Engineering Construction Industry Training Board (ECITB).
Mark, who is Learning and Competence Manager at Altrad, is already a member of the ECITB’s CCNSG Safety Passport Committee and also spent eight years with the industry-led skills body in three different roles between 1998 and 2006.
More recently, Mark has played an instrumental role in creating development pathways at one of the largest employers in the engineering construction industry (ECI), having joined Altrad in 2020.
For example, Mark put in place a supervisory management development pathway for Altrad. He also played a leading role in helping trial and introduce the ECITB’s Work Ready Programme, with Altrad becoming a partner in several locations across the UK to create employment opportunities for new entrants.
He said: “I feel proud and privileged to have been elected by ECITB contractors to represent their interests in Wales. I intend to do my utmost for them.”
Mark’s industry experience spans more than four decades. He started out as a 16-year-old mechanical fitter apprentice, while he achieved his first trainer Level 3 qualification in 1988.
Since the late 1980s, Mark’s career has been rooted in the world of training, including close links to Wales, where he co-founded the Cardiff-based charity TRACK 2000, which provided training for the socially disadvantaged.
During the 1990s, Mark held the role of Training and Enterprise Manager of the Vale of Glamorgan Council and was the vice-chair of the region’s Training Provider Association.
Mark joined the ECITB in 1998 as a Senior Development Advisor within the Product Development Team, where he developed the ECITB’s flagship Supervisory Management Training & Development (SMTD) programme.
He went on to become Head of Partnering and Funding, creating the UK-wide initiative ‘Ambition Energy – Engineering Construction’, and then Regional Operations Manager with responsibility for Wales, the Midlands, South West, South Coast, London Head Offices, East of England and Southern North Sea.
From 2006 to 2020, Mark was founding Managing Director of Phoenix Training Solutions, a leading training provider of the ECITB. During this time, Mark developed numerous ECITB national courses and assessment tests, such as IOSH Engineering Construction.
Mark was also a leading safety training consultant for the governments of Dubai and Abu Dhabi, whilst his company was a preferred training provider on Hinkley Point C (HPC) for IOSH Construction and ILM Nuclear Safety Culture training; both courses Mark had developed.
Now with Altrad, Mark has taken on operational training management for Altrad’s Wales and Southern region.
He added: “Whilst at the ECITB, I directly influenced regionalisation and the establishment of regional fora and chairs.
“Put simply, the ECITB has become part of my professional DNA since 1998 and I feel a sense of loyalty to the team it employs and contractor community it is there to serve.
“Having the experience from within the ECITB, externally as a leading training provider and now within the industry’s largest engineering services contractor, I will have a lot to bring to the table for the wider benefit of all within the region.”
ECITB Chief Executive Andrew Hockey says the link to industry – through the ECITB’s Board, Council and regional fora – ensures the organisation fully understands the needs of employers in the ECI.
He said: “Our regional fora bring industry expertise to our work while helping us forge better connections in the ECI across the regions.
“Mark’s industry experience will be invaluable in identifying and addressing skills needs in Wales and driving our work forward in the region.”
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