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Future of Port Talbot Steelworks

Owen Donovan by Owen Donovan
September 3, 2026
in Issues, The Economy
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Image Source: TATA Steel via Youtube

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Future of Port Talbot Steelworks

Is this devolved to Wales?

Devolved

The necessary powers are not reserved to the UK Parliament in Schedule 7A of the Government of Wales Act 2006.

Shared Powers

Economic development is devolved, but some key policy areas around international trade, energy and the steel industry are not devolved.

Not Devolved

The powers over this are reserved to the UK Parliament in Schedule 7A of the Government of Wales Act 2006 (Specific Section/Number/Clause).

Where is this happening?
Afan Ogwr Rhondda
What's happening?
Why is this happening?
Who has been affected?
What's happening?

After years of uncertainty, in January 2024, the owners of Port Talbot steelworks – Indian conglomerate TATA – announced that traditional blast furnace steel production would end at the site.

In September 2024, the final blast furnace was wound down, ending primary steel production in Wales.

In its place, TATA agreed to invest £1.25 billion in an electric arc furnace at the site (pictured above). This investment was backed by a £500 million grant from the UK Government. The electric arc furnace will produce steel by melting scrap metal.

Work started on site in summer 2025, and it’s expected it will be operational during 2028. There have been delays in setting up a connection to National Grid, as well as a major fire at the site in June 2026.

In July 2026, the UK Parliament passed the Steel Industry (Nationalisation) Act. This gave the UK Government the power to nationalise the remaining assets of British Steel (not TATA) and will enable the UK Government to intervene in the steel industry in future if needed.

The Senedd gave its consent (where it involved devolved policy areas) on 14th July 2026.

Why is this happening?

TATA has long claimed to have been losing at least £1 million a day from Port Talbot’s blast furnace operations.

High energy costs, Brexit (which meant tariffs/import taxes being applied to UK-produced steel exported to the EU), US tariffs introduced by Donald Trump, dumping of surplus Chinese steel on global markets and environmental targets have all been given as reasons behind the long-term uncertainty at the site.

Electric arc furnaces produce steel in a “cleaner” way and will help meet air pollution and carbon emission targets.

Who has been affected?

It’s claimed that the electric arc furnace project will safeguard around 5,000 jobs, but at least 2,000 jobs have been lost as a result of the blast furnace closure.

Welsh indices of production and construction, basic metals and metal products (100 = level at 2023)

Jobseekers Allowance, claimant count, Neath Port Talbot (since September 2024/closure of blast furnaces)

Costs & Economic Impact

Enter your description
£ 00 million Total
  • Cheese
  • Explanation
  • Etc
Who has raised this at the Senedd?

Rhun ap Iorwerth MS

First Minister

Adam Price MS

Enterprise & Energy Minister

Elyn Stephens MS

Backbencher

Elwyn Vaughan MS

Chair: Economy & Energy

Dan Thomas MS

Backbencher

Ben McKenna MS

Shadow Health Minister

Jason O'Connell MS

Shadow Economy Minister

Shav Taj MS

Backbencher

Janet Finch-Saunders MS

Backbencher

Darren Millar MS

Conservative Group Leader

Rhun ap Iorwerth MS

First Minister

Adam Price MS

Enterprise & Energy Minister

Elyn Stephens MS

Backbencher

Elwyn Vaughan MS

Chair: Economy & Energy

Dan Thomas MS

Backbencher

Ben McKenna MS

Shadow Health Minister

Jason O'Connell MS

Shadow Economy Minister

Shav Taj MS

Backbencher

Janet Finch-Saunders MS

Backbencher

Darren Millar MS

Conservative Group Leader

What are the party positions on this?
Plaid Cymru
  • Supports Nationalisation
  • Opposed
  • Neutral/No Opinion

Plaid Cymru MSs supported the Steel Nationalisation Bill, but have expressed disappointment that nationalisation wasn’t considered for Port Talbot in the same way as it was for British Steel.

The Prime Minister came to Port Talbot last month (August 2026), promising re-industrialisation and good, secure jobs. The UK's own steel strategy says that Wales is expected to account for around half of the UK's steel-making capacity, yet just days after the Prime Minister's visit, his Government was asked two very straightforward questions: how much of its £2.5 billion steel commitment had been spent or allocated and how much of that had been spent in Wales? It could provide a figure for neither.
Elyn Stephens MS
Elyn Stephens MSAfan Ogwr Rhondda
Members of the sixth Senedd will remember Luke Fletcher's calls for the UK Government to bring the Port Talbot site into public ownership and retain primary steel making throughout the transition. At the time, those proposals were ridiculed and dismissed as fanciful. Yet, here we are today, discussing the implications for Cymru of a UK Steel Industry (Nationalisation) Bill. It's abundantly clear, regardless of which party is in power at Westminster, what was deemed necessary for Scunthorpe was apparently too much to ask for Port Talbot.
Elyn Stephens MS
Elyn Stephens MSAfan Ogwr Rhondda
Reform UK
  • Supports
  • Opposed
  • Mixed Views

Reform supported the Steel Nationalisation Bill and, in principle, back the electric arc furnace.

However, Reform UK has long placed the blame for job losses at Port Talbot on environmental rules tied to “net zero”. They have also expressed support for restarting blast furnace production.

The fire at the steelworks in Port Talbot is an event that has caused great concern for many of my constituents, not only for the safety of the workforce involved, but also for the impact that this may have on the ongoing work to install the electric arc furnace. We've already seen further concerns raised this week regarding potential delays to the arc furnace. Thousands of people in Port Talbot have already lost their livelihoods due to the closure of the blast furnaces, and now many more people face anxiety about their future with the prospect of these delays.
Ben McKenna MS
Ben McKenna MSAfan Ogwr Rhondda
Reform believes Britain must do everything it can to retain the ability to make its own steel. Our MPs supported this Bill in Westminster, and today we will support it in the Senedd....Thanks to praying at the altar of net zero, we all now know that economic decline comes hand in hand with net zero. The blast furnaces have gone, thousands of livelihoods have been affected, and Britain has become more dependent on imported steel as a result.
Jason O'Connell MS
Jason O'Connell MSPontypridd Cynon Merthyr
In April, I met Tata's chief executive, along with our shadow Cabinet Minister for industry. It was a positive meeting, but given the £500 million of taxpayer investment and given the number of Welsh jobs at stake, we managed to secure reassurance that the (electric) arc construction was on track and that it was still viable.
Dan Thomas MS
Dan Thomas MSCasnewydd Islwyn
Labour
  • Supports Nationalisation
  • Opposed
  • Neutral/No Opinion

Labour have backed previous efforts to protect jobs at the Port Talbot site and have also supported the Senedd giving its consent to the Steel Nationalisation Bill.

Working in social partnership with our unions, the Welsh Government and the UK Government invested in helping workers find new opportunities and new careers, with Port Talbot becoming a model for a worker-centred just transition. Instead of leaving people behind to fend for themselves, unions, the Welsh Government and the UK Government invested in helping workers find new opportunities and new careers.
Shav Taj MS
Shav Taj MSCaerdydd Ffynnon Taf
Conservatives
  • Supports
  • Opposed
  • Mixed Views

Whilst wanting to support the steel industry, the Conservatives have expressed scepticism about government involvement and the impact of environmental targets.

The Conservatives opposed the UK Parliament’s Steel Nationalisation Act.

Before the closure of Tata Steel's blast furnace at Port Talbot, Wales's steel accounted for 60 per cent of total UK crude steel output and primary iron, it employed over 4,000 people—a figure that has now sadly halved—it contributed around £3.2 billion per year to the Welsh economy, and it represented approximately 3 per cent of Wales's total economic output.....Any decisions affecting the future of this sector will have lasting consequences.
Janet Finch-Saunders MS
Janet Finch-Saunders MSBangor Conwy Môn
We know from figures published just last week that industrial emissions fell by 25 per cent in 2024 due to the closure of Tata's coal-fired blast furnaces in Port Talbot. But, of course, it's nothing to celebrate, because not only has it wiped out, the carbon tax, our sovereign steel-making capacity here in Wales, we now are simply importing steel from overseas, from other more heavily polluting nations, and pushing our carbon-reduction plans into the bin.
Darren Millar MS
Darren Millar MSClwyd
Green Party
  • Supports
  • Opposed
  • Neutral/No Opinion

Green MSs haven’t said anything on this yet, but voted to support the Steel Nationalisation Bill.

Test Test Test
NameConstituency
Liberal Democrats
  • Supports
  • Opposed
  • Neutral/No Opinion

Jane Dodds hasn’t said anything on this specifically, but voted to support the Steel Nationalisation Bill.

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Jane Dodds MS
Jane Dodds MSBrycheiniog Tawe Nedd
Who is responsible?

Adam Price MS

Enterprise & Energy Minister

What have ministers said?
But I must also be honest with the Senedd: welcoming this (Steel Nationalisation) Bill is a bittersweet experience. When the blast furnaces at Port Talbot hung in the balance in 2024, we were told by Westminster .... that nationalisation was not on the table. Roughly 2,600 people lost their livelihoods. A year later, when Scunthorpe's furnaces came under the same threat, Parliament was recalled on a Saturday to keep them burning. Suddenly, every option was on the table. That was the difference, and Wales felt it keenly. I deeply regret that the purpose at the heart of this legislation before us today was not embraced in time to save the blast furnaces at Port Talbot.
Adam Price MS
Adam Price MSSir Gaerfyrddin
My Government is determined to do all that we can to support investment at Tata. My Minister for Enterprise, Connectivity and Energy did speak yesterday with Tata Steel UK's chief executive officer in order to discuss the way ahead, in terms of the electricity connection. Many of the powers, of course, are in the hands of UK Government, but we will do everything in our powers as a Welsh Government to facilitate progress towards the delivery of that investment, and that is why my Minister acted so quickly.
Rhun ap Iorwerth MS
Rhun ap Iorwerth MSBangor Conwy Môn
Welsh Government will work with companies, UK Government and the national wealth fund, which now has control over that £2.5 billion, to explore how support can be maximised and must be maximised for our steel communities across Wales. Let me be clear, if there is investment being made in the steel sector, UK Government must set out clearly how they plan to support the Welsh steel industry, which is what is important to us here.
Rhun ap Iorwerth MS
Rhun ap Iorwerth MSBangor Conwy Môn
What's being done about this?
Promises & Pledge Tracker
What do the Welsh Government want to do?
Does this need a new law or regulations?
How long will this take?
What do the Welsh Government want to do?

The Welsh Government backs efforts to maintain Port Talbot steelworks. On September 15th 2026, the First Minister told the Senedd that he expects Wales to receive a proportional share of any future UK Government investment in the steel industry (said to be worth a total of £2.5 billion).

On environmental rules, the First Minister backs what has been called a “just transition” to low-carbon steelmaking. The Welsh Government is willing to work with the UK Government where needed – particularly on issues relating to the grid connection.

Does this need a new law or regulations?
The Steel Nationalisation Act was passed by the UK Parliament in July 2026. The Senedd granted its permission to apply in devolved policy areas (Legislative Consent Motion) on 14th July 2026.
How long will this take?

This is an ongoing issue. 

As noted, the new electric arc furnace is expected to be up and running in 2028. This had been pushed back from 2027 due to delays in securing a connection to National Grid.

What have the Senedd's Committees said?

Nothing has been discussed yet.

Committee Name

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Relevant Votes
DateMotion NumberSubjectTabled AsBinding Vote?Votes ForAbstentionsVotes AgainstAbsent/No VoteOutcome
14/07/26NDM9286Steel Nationalisation Bill (UK)
Yes86071AGREED
Further Reading
  1. Senedd Research Service (30th September 2025). “One year on: how has the blast furnace closing affected Port Talbot?“
  2. BBC Wales (19th January 2024). “TATA Steel confirmes 2,800 job cuts across the UK“
  3. BBC Wales (30th September 2024). “Traditional steelmaking ends in Wales”
  4. TATA Steel (18th February 2025). “Plans approved for electric arc furnance“

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