Why Is Port Talbot’s Tata Steelworks at Risk of Closure?
Tata Steelworks plays a huge part in Port Talbot’s economy and provides a great deal of steel to the UK; however, it’s currently at risk of closing without subsidies thanks to reducing carbon emissions. Tata Group is currently in talks with the government trying to come to an agreement to provide £1.5billion towards this. This comes following the announcement by Nirmalya Kumar (head of strategy) who said that Tata hadn’t been profitable for 15 years and the answer would be to close everything down.
Port Talbot’s Economy
The current situation with Tata Steel is reminiscent of Port Talbot’s economic history as a whole. Pioneers within the community have always been known to think innovatively and take risks, which is what is needed currently in order for the plant to turn a profit again. All it needs is some funding from the government so that changes can be implemented that will result in gains.
A similar situation happened with the Welsh gambling and online gambling market. Both are incredibly popular throughout all of Wales and the UK. In fact, there are now so many different places where people can play online gambling games in such a thriving market that comparison and review sites are necessary to help users pick the right place to play. For instance, BonusFinder is used as an objective directory as it breaks down the different online casinos available today and the offers they are putting forward for new and loyal users, alike. A highly reviewed choice at the moment is the five-star LeoVegas so BonusFinder provides a run-down of its many benefits, as they do with a lot of other websites.
The popularity of such online casinos wouldn’t have come to fruition were it not for Port Talbot. When you consider the history of gambling in the UK, you can see that the first-ever land-based casino was opened in Port Talbot. This was done so with risk thanks to the gambling laws at the time but that risk led to a boom in the economy, such an industry just needed a chance to thrive, as is currently the case with Tata Steel.
What Would the Funding Do?
Tata Groups chairman, Natarjan Chandrasekaran, has commented on the issues and put forward how they plan to turn over a profit using the £1.5billion loan. He said that “a transition to a greener steel plant is the intent that we have,” before continuing, “but this is only possible with financial help from the government”. Without such help, Tata Steel will be left with no choice but to consider closing down its sites. The plan is to be less carbon-intensive by using the funding to close two of the blast furnaces and then build electric ones instead. These will likely have a similar output but then won’t cost as much money to keep running.