Class 66 heads towards
Margam Knuckle Yard with a load of steel empties. It is an integrated steelmaking site using imported ore and coal; together with
Llanwern steelworks, the plants produce up to 3.5 million tonnes of
hot rolled and
cold rolled annealed steel coils per annum, for a variety of different end uses. Output is taken by rail from
Margam Knuckle Yard to Shotton for coating, Trostre for tinplating, or direct to the Midlands for the motor industry and domestic goods.
Financial challenges Tata Steel announced on 30 March 2016 it may pull out of its UK operations, including Port Talbot. It provided as reasons "imports of Chinese steel, high energy costs and weak demand". "Plans to save the steelworks were put on hold when potential buyers indicated their intention to withdraw from the bidding process due to the UK voting in favour of withdrawing from the EU". However, in spite of the
Brexit result and warnings from industry and elsewhere that leaving the EU could have a disruptive effect on UK steel, following the vote Tata recommitted to the plant. The UK Government said it "remains committed to supporting a sustainable, long-term future for steel making in the UK".
Closure of blast furnaces In September 2023 the UK Government agreed to pay Tata a £500 million subsidy in order for it to invest in an
electric arc furnace. This was in a bid to cut emissions resulting from the carbon-intensity of the current blast furnaces. Trade unions worried that the increased autonomy of the electric arc furnace would lead to job losses. Unions presented the firm with a plan to keep one of the two blast furnaces open until 2032 in order to minimise job losses. The firm rejected the plan, announcing in January 2024 that they would close both blast furnaces, putting 3,000 jobs at risk. With Tata being the largest private employer in Port Talbot, concerns have been raised regarding the future economic health of the town. However, Labour former Welsh First Minister
Carwyn Jones pointed to the UK's decision to leave the EU as a factor, stating that the uncertainty caused by Brexit resulted in reluctance to invest in the plant and had made it less competitive and less viable as a business, highlighting that Tata was retaining blast furnace operations in the Netherlands and choosing to close them in the UK. Figures from the steel industry had for some time been warning that leaving the EU would have a negative impact on UK steel, and
Stephen Kinnock, Port Talbot's MP, had also warned prior to the referendum that the UK choosing to leave the EU would be "a disaster" for the UK's steel industry. The negative impact from Brexit as a result of uncertainty and lower EU customer orders was cited as one of the reasons behind the liquidation of British Steel, previously owned by Tata, prior to the UK even leaving the EU. Following the UK's departure from the EU and the implementation of the
EU–UK Trade and Cooperation Agreement, UK steel exports to the EU dropped significantly and high-profile industry figures spoke out about the impact the TCA, which imposed some tariffs and quotas on UK steel exports, was having on UK steel. British Steel had also made a submission to the UK Parliament highlighting the importance of the EU market, which according to their figures accounted for 70% of UK steel exports, urging them to revise the TCA. Tata themselves also acknowledged that Brexit had increased their operating costs, estimating that it had added around 15% to the cost of transport and processing. Tata Steel also received criticism for stating environmental reasons were behind their decision to close the blast furnaces at Port Talbot due to their construction of new blast furnaces in India.
Fatal accidents There have been many fatalities caused by industrial accidents at the plant since its opening, the number having been reduced over the years by improved safety measures. An explosion at the Port Talbot plant in November 2001 killed three men. The blast heavily damaged No.5, which was rebuilt and resumed operation from 2003 onwards. In July 2012 Tata Steel were fined £500,000 over the 2006 death of worker Kevin Downey at the Port Talbot plant. Engulfed in steam during a night shift, Downey wandered into a channel of molten slag heated to . He was rescued by colleagues, but suffered 85% burns and died later that day. At the time of the accident, the Port Talbot plant was still controlled by Corus Steel UK. ==See also==