The person in charge of the Port Talbot steelworks is facing criticism for being extremely hypocritical. They are planning to launch a new blast furnace in India, but are using a reduction in carbon emissions as the reason for shutting down two blast furnaces in south Wales, resulting in the loss of numerous jobs.
Last week, Tata declared that they would be reducing their workforce by 2,800 jobs in order to shut down Port Talbot’s two large blast furnaces and substitute them with an electric arc furnace.
Unfortunately, labor leaders informed the Guardian that this decision contradicts the plans to construct a massive new blast furnace at Tata’s Kalinganagar industrial complex in eastern India, which is nearing its final stages.
The reduction in workforce has escalated conflicts between labor unions and the government. Steelworkers argue that the government should have provided more financial assistance to the company in order to maintain local manufacturing. On Tuesday, employees assembled outside Westminster to demonstrate against the choice, and the Labour party promised to push for a vote on the fate of the steel industry in Britain.
2 emissions by a further 8%”
“Last week, the company announced that the changes would preserve most of Tata Steel UK’s current product capabilities and uphold the nation’s ability to produce steel independently. Additionally, these changes will result in a decrease of 8% in CO2 emissions for Tata Steel UK.”2
The reduction will result in a decrease of 5 million tonnes of emissions annually and a decrease of approximately 1.5% in overall emissions for the UK.
Unfortunately, the venture at Kalinganagar has the potential to escalate the corporation’s total worldwide discharge. It is set to become one of the largest blast furnaces globally, boasting a 5,870 cubic metre volume, and is expected to finish construction within the current year.
The unions believe that constructing a new blast furnace and claiming to reduce emissions in Wales is hypocritical.
The Indian facility currently contains a large blast furnace capable of holding 4,330 cubic meters, which the company has praised as the essential part of steel production at the plant.
Sharon Graham, the general secretary of Unite, stated that Tata’s actions in India reveal the falsehood that their decision to shut down blast furnaces in Port Talbot is based on environmental concerns. She believes this is not the case and that Tata is solely focused on increasing their profits globally.
Therefore, it is imperative that there be significant government funding for environmentally friendly steel production, accompanied by assurances of employment and a strategy for expansion.
The reduction in Welsh workforce has been in progress for over ten years, due to the challenges faced by the steel industry in Britain in competing against cheaper Chinese imports and European competitors with lower energy expenses. After ongoing discussions regarding government subsidies, Tata eventually announced a £1.25bn investment, with £500m contributed by taxpayers, to transition to an electric arc furnace. This method utilizes electricity to melt scrap metal instead of burning coal and iron ore. However, this will result in a significant decrease in labor needs, leading to 2,500 job cuts at Port Talbot and an additional 300 at another south Wales location, Llanwern. Semi-finished steel slabs will be imported from India and the Netherlands until the EAF becomes operational in 2027.
Charlotte Brumpton-Childs, a national officer for GMB, stated that this blatant double standard is precisely the issue that GMB has been addressing. Tata’s strategy revolves around bringing in steel from their facilities in India and IJmuiden while constructing and continuing to operate the electric arc furnace.
This shift being labeled as “environmentally friendly” is deceptive, enabling international organizations to make a profit at the expense of GMB members and their communities.
Europe has been more proactive than India in addressing company emissions, and India’s steel industry heavily relies on coal.
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Sources have stated that Britain’s stricter methods for addressing emissions, along with its ample supply of scrap steel for Electric Arc Furnaces (EAFs), have distinguished its industry from that of other countries. Additionally, the site has been testing out carbon capture technology and the upcoming blast furnace will feature a dedicated gas cleaning facility and a sturdy dust extraction system.
Tata has expanded Kalinganagar – a new town built up in the face of local tribal resistance and taking advantage of iron ore reserves in Tomka – to become one of the most important assets in its global portfolio.
During the early 2000s, a government agency initiated the purchase of land from the general population and attracting global steel companies to establish facilities in coastal Odisha. This location, situated between the Bhitarkanika National Park, known for its abundance of crocodiles, and the Tomka iron ore mountain, is among the four large Tata steel plants in India (which includes the prominent Jamshedpur site).
Tata encountered resistance from nearby residents who were determined to receive payment and relocation in exchange for their traditional lands.
In January 2006, there was a critical event where law enforcement shot at a gathering of indigenous individuals who were protesting the building of a barricade around a plant on land used for grazing cattle. This resulted in the deaths of 13 Adivasi people and one policeman. A commemoration is held annually to remember this event.
A representative from Tata Steel expressed empathy for the challenges faced by our employees and steel communities. We strongly believe that utilizing scrap-based steelmaking is the optimal choice for our UK operations, as the country is currently the second leading exporter of recycled steel globally and has a rapidly growing renewable energy industry.
Source: theguardian.com
