South Wales Evening Post reported that steel giant TATA has confirmed it wants to invest another GBP 2 million in its Port Talbot works.
The company says its plans for a replacement flare stack at the Morfa Coke Ovens demonstrate further confidence in the long term future of the steel plant. It follows on from investment plans totaling almost GBP 240 million which TATA has previously announced.
A planning application for the 50 meter stack, which is some 20 meters shorter than the existing flare stack, has now been submitted to Neath Port Talbot Council.
Mr Robert Dangerfield spokesman at TATA Steel said that "It is part of our constant process of maintenance and improvement in the works and, arguably, represents a commitment to sustained operations here. The flare stack will cost more than GBP 2 million and we do not invest in these things if we do not expect them to last for a considerable period of time."
TATA has previously announced it is spending GBP 53 million on the Basic Oxygen Steelmaking plant as well as GBP 185 million to rebuild Port Talbot's Blast Furnace No 4.
Mr Dangerfield said that "Any investment here is always going to be considerable by dint of the size, scale and scope of the operation. Although GBP 2 million sounds relatively small in terms of the other figures mentioned, it is still significant."
An investigation by TATA found there were structural issues with the existing flare stack, which is used to burn off dangerous gases arising out of the process that turns coal into coke. The company said the new stack would not affect the character of the area, as it would be located within an industrial landscape among structures of a similar nature.
Mr Dangerfield said a large part of the old stack would be recovered for recycling within the steelworks. He added that "Replacing the old stack will ensure we are ahead of the game in terms of compliance with the latest regulations. We also have some local contractors engaged with the project so there will be benefits to other companies."
However, there remain concerns for the long term future of TATA's UK steelmaking operations because of the malaise afflicting the European economies and the carbon price floor, a super tax on the biggest polluters.
TATA has claimed in the past that the floor price would lead to higher costs for generating electricity, hitting energy intensive industries such as steelmaking. Steel produced elsewhere in the world would not be subject to the extra costs, making UK steelmaking less competitive.
(Sourced from www.thisissouthwales.co.uk)
