Following Tata Steel's decision to cut 2,800 jobs across its UK branches, the Welsh Affairs Committee is set to conduct intensive scrutiny sessions on Wednesday, 31 January. These sessions will delve into Tata Steel's resolution to shut down its Port Talbot blast furnaces, marking a shift towards more sustainable steel production methods in the UK. This strategic move is anticipated to affect nearly 3,000 employees at the Port Talbot facility.

To view the sessions

• 30, Thatcher Room, Portcullis House: Watch live on parliamentlive.tv
• 15, Committee Room 8: Watch live on parliamentlive.tv

The committee's morning session will feature insights from Tata Steel’s global leadership including the Global Chief Executive and Managing Director T. V. Narendran, and Tata Steel UK's Chief Executive Rajesh Nair, along with representations from trade unions.

Subsequently, in the afternoon, the discussion will broaden with inputs from Vaughan Gething MS, the Welsh Government's Minister for Economy, and Rt Hon David T.C. Davies MP, the Secretary of State for Wales.

Committee members are particularly intent on dissecting the ramifications of Tata Steel's decision, focusing on its impact on the local Port Talbot community, the broader Welsh economy, the manufacturing landscape in Wales, and the future trajectory of the UK's steel industry.

The Indian-owned firm has stated that its decision was influenced by two primary factors.

Firstly, the company aimed to counterbalance the significant losses they experienced, totalling approximately £551m, in the final quarter of the previous year. Secondly, there was a strategic need for the company to transition towards more sustainable and environmentally friendly energy solutions in the future.

Tata Steel and the UK government have agreed to share the expenses for a £1.25bn electric arc furnace, which will replace the existing two blast furnaces. The project's total cost is estimated at £1.25bn, of which the UK government will contribute £500m. Tata Steel plans to cover the remaining £750m to finalize the investment. The focus is shifting towards identifying positives, such as reskilling the regional workforce to adapt to these changes.

The Port Talbot site is a significant contributor to the Welsh economy which in  2020-21 contributed 3% of the total economic output and paid average salaries 36% higher than the UK average.