Additionally, around 2,500 jobs at British Steel's Scunthorpe site are also at risk due to potential blast furnace closures.

The UK government is backing a £500 million deal to support Tata Steel in building a new electric arc furnace at Port Talbot, which will lead to the closure of its last blast furnace.

T V Narendran, CEO of Tata Steel, expressed optimism about the project, highlighting its potential to establish Port Talbot as a leading center for green steelmaking in Europe.

This transition will result in significant job losses, with over 2,500 workers at Port Talbot steelworks facing redundancy.

While the deal secures the long-term future of steel production at Port Talbot, it does not guarantee job preservation for the affected employees.

The new redundancy packages include 2.8 weeks of salary for every year of service, with a minimum payout of £15,000, and a £5,000 retention payment.

Affected workers will have access to a year-long training program to gain qualifications in in-demand skills, with full pay for the first month.

Business Secretary Jonathan Reynolds announced that Tata Steel will contribute £750 million towards the electric arc furnace project, which is part of a £1.25 billion investment in the UK steel industry.

A comprehensive steel strategy is set to be published by the UK government in spring 2024, focusing on sustainable investment and economic stability.

The shift from traditional blast furnaces to electric arc technology, while environmentally friendly, is expected to require fewer workers, contributing to the job losses.

Tata Steel plans to collaborate with the Transition Board and both UK and Welsh governments to drive economic regeneration and job creation in South Wales.

Unions and politicians have raised concerns regarding the economic implications of these job losses and the UK's ability to maintain domestic steel production.