We have been disappointed to read recent press briefings from ‘sources close to Tata’ which have disparaged the Multi-Union Plan for Port Talbot and the downstream sites. The suggestion that our alternative plan is ‘almost impossible to achieve’ is negated by expert analysis – including the company’s own previous acknowledgment that the Multi-Union Plan is credible – and undermines the ongoing consultation process.
Responding to these press briefings, Community’s Assistant General Secretary Alasdair McDiarmid said:
“Given that we are still in consultation, Tata sources briefing the press that they are set to reject our credible Multi Union Plan is deeply unhelpful and makes a mockery of the process. It would be wholly unacceptable for Tata to push ahead with their damaging proposals for Port Talbot and the downstream sites when a viable alternative to save jobs and secure a long-term future for our industry is on the table. We utterly reject the representation of our plan as unaffordable or ‘not feasible’. These false assertions run contrary to the detailed analysis conducted by industry experts which show that the Multi-Union Plan is workable and viable.
“This isn’t just a question of money, though. We are talking about the future of highly-skilled jobs, Britain’s sovereign steelmaking capacity, and the lifeblood of communities in South Wales and beyond which were built on steel.
“Our Multi-Union Plan would protect 2300 jobs, and significantly de-risk the transition to green steelmaking by limiting the reliance to external supply. It would also keep all assets open, retain our capacity to produce virgin steel in the UK, and keep open the door for Tata to deploy new technologies and increase volume in future. None of this is possible under the company’s half-baked plan, which would be devastating for our members and the national security of the UK.”
Debunking false assertions made in press briefings
The respected steel industry experts, Syndex, were appointed by the steel unions to advise on the decarbonisation of Tata Steel UK, and have in-depth knowledge of the company having worked within Tata Steel UK since 2014. Importantly, Syndex have access to all the details of the company’s plan as well as the Multi-Union Plan, and therefore are well placed to advise on the facts and the fictions.
“The idea of keeping one blast furnace open while building an electric one, as proposed by Labour and trade unions, is almost impossible to achieve” – FALSE!
The complexity of building an Electric Arc Furnace (EAF) with a running blast furnace, and the complexity of running two types of steel flow in parallel, is a common challenge to all European steel producers engaged in a decarbonisation strategy. The strategy proposed by the Multi-Union Plan is a mainstream solution with manageable complexity. Our two-stage approach based on a 1.5mt EAF running alongside a blast furnace until 2032, with at least 3mt of electrified steel capability after this point (either through two 1.5mt EAFs or a 1.5mt EAF coupled with an Open Slag Bath Furnace) is eminently achievable.
“The Multi-Union Plan is not affordable” – FALSE!
The additional capital expenditure required to implement the Multi-Union Plan has been fully factored into our strategy ever since it was published last autumn. The estimates of additional capex presented by the company are aligned with Syndex’s figures, and the financing can be supported by Labour’s commitment to invest £3bn to decarbonise steelmaking over the next parliament.
Syndex had estimated that the Multi-Union Plan model – based on a single blast furnace and a 1.5mt EAF – would deliver a positive EBITDA between 2025 and 2032. However, the estimates of Syndex are actually more conservative than estimates shared last week by the company with our experts.
Furthermore, Syndex have forecast that after 2028 the Multi-Union Plan would deliver a sustainable level of EBITDA, even before the construction of a second EAF or an Open Slag Bath Furnace, and this view is supported by the company’s estimates.
Of course, the Multi-Union Plan cannot compete with Tata’s plan when it comes to the level of profitability – precisely because Tata’s proposal is the cheapest possible option available. However, the overall human and long-term strategic costs of Tata’s bad deal for steel for Britain will ultimately be much higher. The company – and Rishi Sunak’s government – must ask themselves whether taking a course of action that would devastate communities, degrade Britain’s primary steelmaking capacity and undermine national security is a price they are willing to pay.
“The Multi-Union Plan is not feasible” – FALSE!
This is simply not true. The conclusions of the analysis performed by Syndex, who Tata gave access to all the requested confidential information, are absolutely clear: all the engineering reports shared with Syndex conclude that the Multi-Union Plan is technically feasible.
Community is the steelworkers’ union. More steelworkers are members of Community than any other union, and we represent the vast majority of workers impacted by Tata’s decarbonisation plans. We have a history dating back over a century, representing members and campaigning to protect Britain’s steel industry. We are a modern trade union, campaigning for a better working world.
If you are a member of Community and need advice or support, please contact our Service Centre at help@community-tu.org or on 0800 389 6332.
© Community Trade Union 2024