£185m Port Talbot investment hailed by steelworkers' union
Aug 17 2010 by Iain Laing, The Journal
STEEL giant Corus is to invest £185m at a UK factory in a move described as a massive boost by a union chief.
A blast furnace at the Port Talbot plant in South Wales will be rebuilt from next summer, improving its safety, environmental performance and reliability and increasing its capacity by up to 400,000 tonnes.
Kirby Adams, chief executive of Corus’s owners Tata Steel Europe, said the investment was a major step in achieving its ambition to position Port Talbot as a producer of high-quality strip products.
“Our capital expenditure decisions aim to invest in those who invest in themselves. The commitment and capability shown by our South Wales employees to meet the challenges posed by the downturn, together with the constant support we have received from the Welsh Assembly Government and the local community and unions, are important factors that have led to this decision.
“As a result of this project, the Port Talbot works and our downstream supply chain will be able in the coming decades to continue improving the quality of products and services provided to their UK and overseas strip product customers.”
David Ferris, union chairman at Port Talbot, said: “This is a massive boost for the area. Following our recent announcement that we are taking on some 150 young people, this news promises them a strong future, and a sustainable future for the whole community.”
The company has been under fire from unions after cutting 4,600 jobs across Europe over the last year, including 1,400 on Teesside, but last week it unveiled plans to open a £31.5m factory making parts for wind turbines on Redcar which could create 220 jobs.
Michael Leahy, general secretary of the Community union, said: “This investment shows that Corus believe that there is a strong future for the British steel industry. Community welcomes the guarantee of continued jobs and growth that this investment will bring to the people of Port Talbot.
“While Port Talbot’s future as a centre of steelmaking excellence appears secure, the delay in concluding a deal that would see the resumption of steelmaking on Teesside continues to undermine the foundations of the industry. Community again calls for Corus to progress a deal with Thai steelmaker SSI.”
The news comes after it was announced this month that the Government had frozen a £29m rescue package for the mothballed Teesside Cast Products factory.
