Tata Steel’s UK operations recorded pre-tax losses of £1.12 billion for the financial year ending March 2024, significantly up from £279 million the previous year. The sharp rise in losses is attributed to restructuring costs tied to the closure of its two blast furnaces at Port Talbot, South Wales, a decision that has resulted in 2,500 job losses.
Tata Steel’s accounts reveal £619 million in restructuring, impairment, and disposal costs, contributing to the increased losses. Additionally, the company has allocated £152 million for redundancy payments, as its workforce shrank to approximately 7,900 employees as of March.
The closure of the first blast furnace occurred in July 2024, followed by the second in September, marking the end of primary steelmaking at Port Talbot. Revenues also fell 16% to £2.63 billion, reflecting lower steel prices and reduced production volumes.
The UK government has committed £500 million towards the construction of an electric arc furnace at Port Talbot, with Tata Steel contributing £750 million. The new facility, which will produce 3.2 million tonnes of steel annually from scrap metal, aims to cut emissions by over 5 million tonnes and is expected to become operational in late 2027. However, the electric arc furnace will require fewer workers, creating only 500 jobs during its construction.
Following the closure of Port Talbot’s blast furnaces, much of the steel slab and coil required by Tata Steel’s UK operations will be sourced from its sites in India and the Netherlands. This shift has raised concerns among unions and politicians about the potential risks to the UK’s economic security due to diminished domestic steel production capabilities.
The UK government is reportedly considering the nationalisation of British Steel, which operates the country’s last remaining blast furnaces in Scunthorpe, Lincolnshire. Owned by China’s Jingye, British Steel, together with Port Talbot, was part of Corus, acquired by Tata Steel in 2007 for £6.2 billion.
