Tata Steel has set out what it wants from whoever forms the next Welsh Government – publishing a list of demands on the eve of the Senedd election that could shape the future of one of Wales’s most important industries.
But the backdrop to those demands is stark.
The company’s £1.25 billion transformation of Port Talbot – backed by £500 million from the UK Government – has already led to thousands of job losses to date – a transformation that is still ongoing.
Both of Port Talbot’s blast furnaces were closed as part of the transition, with workers facing significant redundancies and, at one point, the threat of catastrophic Christmas pay cuts as Tata restructured its operations.
Production at both Port Talbot and the Trostre plant in Llanelli was also halted over the Christmas period amid weak demand – a move that added to anxiety among workers and communities already reeling from the scale of the changes.
EU steel tariffs have added further pressure, sparking fears for jobs at both Port Talbot and Llanelli.
The new Electric Arc Furnace at Port Talbot – the centrepiece of Tata’s investment – is due to come online in late 2027.
The company says it will cut the site’s carbon emissions by 90% and secure long-term steelmaking in Wales.
But questions remain about the long-term job picture – with EAF steelmaking requiring significantly fewer workers than the blast furnace operations it replaces.
Of the 10 to 11 million tonnes of scrap steel generated annually in the UK, approximately 80% is currently exported. Tata Steel says redirecting some of that domestic scrap toward the new EAF at Port Talbot will reduce reliance on imported coal and iron ore and strengthen economic resilience.
Against that backdrop, Tata Steel has published a five-point manifesto setting out what it needs from the next Welsh Government to make the transformation a success.
On skills, the company is calling for a full audit of the workforce needs across Wales’s steel and advanced manufacturing supply chain – warning that Wales already faces shortages in engineering roles that will intensify as major decarbonisation projects come online.
On research and innovation, Tata Steel already works with Swansea University, the University of Warwick and the University of Cambridge, and has committed £20 million to two new Centres of Innovation. But it says R&D funding levels in Wales are significantly below those available in comparable countries and is calling for better pilot facilities and less bureaucracy.
On energy costs, Tata Steel argues that high energy prices remain one of the biggest competitive disadvantages facing UK steel manufacturers compared to European rivals, and is calling on the Welsh Government to support a more favourable energy cost environment for energy-intensive industries.
On public procurement, Tata is asking the next Welsh Government to use its buying power to support domestic steel – pointing out that the UK steel sector now supplies only one third of the country’s overall demand.
The company also points to UK Government data estimating that 7.7 million tonnes of steel will be required for major public infrastructure projects over the next decade – an opportunity it says Welsh steel is well placed to serve, if the right conditions are in place.
The UK’s offshore wind pipeline alone could require up to 25 million tonnes of steel by 2050, representing a potential value of £21 billion to the UK steel market over the coming decades.
Rajesh Nair, CEO of Tata Steel UK, said the company was ready to invest if the policy conditions were right. “A stronger Britain depends on a strong British industrial base and Wales can be at the heart of that,” he said.
Tata’s transformation has been politically contentious throughout the Senedd election campaign, with parties divided on whether the UK Government’s £500 million support package was sufficient and what further backing Welsh steel communities deserve.
The company’s full manifesto – Creating a Secure Future for Welsh Steel – is available at tatasteeluk.com.
Polls open across Wales at 7am on Thursday and close at 10pm. The count and results are expected on Friday.
