Labour finalising £500m rescue for Tata Steel’s Port Talbot plant

The government is working to finalise a £500 million rescue package for Tata Steel’s Port Talbot plant, after the closure of its blast furnaces.
The financing deal, which was drawn up by the previous government, is set to support Tata with its plans to build an electric arc furnace, replacing the existing coal-powered process, under ambitions to switch to a more environmentally friendly form of production.
The Indian steelmaking group said it would invest £750 million in building the furnace, alongside funding a support package for employees expected to be made redundant during the transition.
About 2,800 jobs are expected to be lost as a result of closing down two blast furnaces at its south Wales plant, the first of which was shut in July.
Jonathan Reynolds, the business secretary, is planning to make a statement to parliament on Wednesday about the deal, according to reports.
The government did not comment on reports that a deal could be announced this week, as negotiations with Tata Steel continue.
A spokesman for the Department for Business and Trade said: “Steel is vital for a vibrant, secure economy. Our steel sector needs a government working in partnership with trade unions and business to secure a green steel transition that’s both right for the workforce and delivers economic growth.
“Decarbonisation does not mean deindustrialisation and we will be working to safeguard jobs as part of these negotiations, securing the future of steelmaking communities for generations to come.”
Tata Steel was contacted for comment.