IndustryIssue 01 - 2026MAGAZINE
Port Talbot

Port Talbot: Steel town, shut down

The new electric arc furnace at Port Talbot will not be ready until late 2027

On September 30, 2024, a heavy silence fell over Port Talbot. For more than a century, the deep rumble of the steelworks had been the heartbeat of this South Wales town. Steam vented from the towers, and the sky often glowed with the work of the blast furnaces. That afternoon, “Blast Furnace Four” was tapped for the last time. The iron stopped flowing. The heat faded.

One year later, the skyline looks different. The towers still stand, but they are cold and await demolition. The silence is not just industrial. It feels like a pause in the town’s history. The transition to “Green Steel” was supposed to be a new beginning. Politicians promised it would bring clean technology and high-skilled jobs. They said it was vital for the climate. But for the people living here, the last twelve months have not felt like a new beginning. They have felt like an ending.

Hard numbers drove the closure. Tata Steel reported daily losses of around one million pounds. They blamed soaring energy costs and fierce competition from cheaper Chinese imports. The plant was also the single largest carbon emitter in the United Kingdom. It was responsible for 1.5% of the country’s total emissions.

Faced with a choice between shutting down completely or changing, the government stepped in. They committed £500 million to help switch to cleaner electric arc furnaces. This technology promises to cut emissions by 90%. That is a massive win for the environment. Yet the cost of this victory is being paid by the local working class.

The human cost of change

The 2024 statistics reveal a community in crisis. Tata Steel announced the elimination of 2,800 jobs. This represents roughly 10% of the total employment in Port Talbot, a town of just 35,000 people. The plant once employed 4,000 people directly. Today, only half that workforce remains.

The ripple effects extend far beyond the factory gates. Estimates suggest as many as 9,500 additional jobs could be affected throughout the supply chain. These are the scaffolders, cleaners, and engineers who kept the giant site running. For a community that has built its identity around steelmaking for over a century, this is not just an economic blow. It is an existential crisis.

The government and Tata Steel tried to soften the landing. A “Transition Board” was set up to help. They funded 3,667 training courses and qualifications for displaced workers. Grants were provided to 37 supply chain businesses, which protected nearly 200 jobs. Employability services directly supported 332 people into new positions. Around 600 employees who faced compulsory redundancy were offered other roles within the business.

Despite these efforts, the reality on the ground is tough. Many former steelworkers have had to pivot to entirely different careers. Some have used their redundancy money to establish pizza businesses. Others have retrained to become prison officers. These jobs often pay significantly less than their previous skilled roles in the heavy industry. The uncertainty of the service sector has replaced the pride of making steel.

The handling of Port Talbot stands in stark contrast to other industrial closures. In September 2024, the Ratcliffe-on-Soar power station also closed. It was the last coal-fired power station in Great Britain. However, that transition is viewed as a success. Unions were involved five years in advance. Workers were given flexible release dates and fully funded training before their jobs ended. There were no compulsory redundancies. In Port Talbot, the process felt chaotic and rushed. Workers felt excluded from the decisions that sealed their fate. This failure to manage a “Just Transition” has left deep scars.

Political and strategic crisis

The anger in Port Talbot has spilt over into national politics. The closure has become a weapon for those who oppose the “Net Zero” agenda. The Reform Party and its leader, Nigel Farage, have seized on the discontent. Farage visited the town and promised to reopen the blast furnaces. Industry experts say this is technically impossible, but the message resonated.

In the 2024 General Election, Reform UK surged to second place in the local Aberafan Maesteg constituency. They secured 20.9% of the vote, pushing the Conservatives into third. This is a historic shift in a traditional Labour stronghold. Reform argues that “Net Zero” is an expensive illusion that kills jobs and raises bills. They have vowed to abolish net-zero policies in local councils under their control.

This rhetoric is working. Trade unions report that their members are increasingly turning toward Reform. Workers feel abandoned by the mainstream parties. They see a political class in London that prioritises carbon targets over industrial communities.

The closure also exposes a major strategic weakness for the United Kingdom. It is now the only major economy in the G20 that cannot make “virgin” steel from scratch. Electric arc furnaces rely on recycled scrap metal. This is fine for construction beams, but it is hard to use for high-quality products like car bodies or military equipment. These require the purity of virgin steel made from iron ore.

By closing the blast furnaces, the European country has become dependent on imports. The United Kingdom now faces the compulsion of buying raw steel slabs from other countries to keep its rolling mills running. This reliance on foreign supply chains is risky in an unstable world. It also raises the issue of “carbon leakage.”

The Conversation UK, Editor, Jo Adetunji, said, “We have stopped the smoke rising over Port Talbot. But if we import steel from countries like India or China, we have not helped the planet. We have just moved the pollution elsewhere. In a bitter irony, Tata Steel is commissioning new blast furnaces in India at the same time it is closing them in Wales.”

“The UK steel industry faces unique hurdles. Our industrial electricity prices are the highest in Europe. This makes it very hard to compete. Producing steel here costs more than in France or Germany. Research shows that we need lower energy costs and a Carbon Border Adjustment Mechanism (CBAM) to level the playing field. This mechanism would tax dirty steel imports, protecting our domestic producers. The government plans to introduce this by 2027, but that may be too late for the workers who have already lost their jobs,” she noted.

There is also a dangerous gap in the timeline. The new electric arc furnace at Port Talbot will not be ready until late 2027. This creates a three-year “valley of death” where no steel is made on site. The skilled workforce may disperse during this time. When the new plant finally opens, the people who need to run it might be gone.

The Keir Starmer government has recognised the urgency of the situation. It has announced plans to invest £2.5 billion into the steel industry. A new “Steel Strategy” is scheduled to be published in the spring of 2025. Additionally, the “National Wealth Fund” will provide £5.8 billion for green projects, including green steel and hydrogen. These are positive steps. But for the thousands of families in Port Talbot, the help feels slow to arrive.

The transition to “Net Zero” cannot just be a technical exercise. It cannot be solved only with capital grants and carbon spreadsheets. It must be a social contract. When communities feel they are being sacrificed for an abstract environmental goal, trust evaporates.

The public supports climate action in principle. They lose faith when they see the costs burdening workers. The difference between the orderly closure at Ratcliffe-on-Soar and the crisis at Port Talbot proves that management matters. Workers need genuine pathways to quality jobs, not just a redundancy cheque.

The hope is that the site will rise again as a leader in green technology. But the silence of the old furnaces serves as a warning. If the path to “Net Zero” destroys the communities it is meant to save, the political consensus for climate action will crumble. The Keir Starmer administration must ensure that the “green revolution” does not leave the United Kingdom’s industrial towns behind.

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