Construction BUSINESS

The fund will be delivered through a partnership between Neath Port Talbot Council and Welsh Government’s Business Wales.

Supply chain businesses impacted by Tata Steel UK’s transition to electric arc steelmaking at Port Talbot will from today be able to seek funding to overcome short term challenges during the transition phase, as well as helping businesses refocus in preparation for new growth opportunities.

Business Wales is today inviting businesses in the Tata Steel UK supply chain to assess their eligibility for support through the Supply Chain Transition Flexible Fund as part of an overall £80 million support fund provided by UK Government through the cross-government transition board.

It comes on the day that Tata Steel UK is ceasing operations at blast furnace 4 along with other associated iron and steelmaking assets, bringing an end to ironmaking at the Port Talbot site. Steelmaking at the site will resume in 2027 through the investment of £1.25 billion in electric arc furnace based steelmaking, using UK-sourced scrap steel.

It will provide business advice and financial support to affected supply chain businesses across Wales who are working in the Tata Steel UK supply chain. The intervention will ensure that businesses impacted by Tata Steel UK’s transition at Port Talbot are able to overcome short term challenges during the transition phase, as well as helping businesses re-orientate in preparation for new growth opportunities.

From 10am on Monday 30 September, businesses will be able to register their interest to discuss their needs with Business Wales, through an eligibility checker. Eligible businesses will then receive a comprehensive diagnostic ahead of being invited to apply for financial assistance.

Secretary of State for Wales and Chair of the Transition Board, Jo Stevens said:

Businesses and workers that supply Tata have been feeling the impact of the changes at Port Talbot for months.

That’s why I announced this £13.5 million fund within weeks of the new UK Government coming into office, and have worked at pace with partners in Welsh Government and the Council to get applications open.

I encourage affected businesses to come forward and check their eligibility for this financial support, as part of the wider support package we are putting in place. This government will back workers and businesses whatever happens.

Welsh Government Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans, said:

The closure of the blast furnaces at Tata Steel UK have caused concern and uncertainty for many, both currently working at the steelworks and amongst its significant local supply chain. 

This fund is focused exclusively on supporting those businesses substantially reliant on Tata Steel UK, which will be impacted by the blast furnace closures to help mitigate the impact and plan for a positive future.

I would encourage any supply chain business affected by the transition to use the eligibility checker to access support through Business Wales.

Leader of Neath Port Talbot Council Cllr Steve Hunt said:

I welcome the launch of this new fund which will provide vital support to the many businesses that have grown to play a key role within Tata Steel’s supply chain.

It is critical that such companies are supported to adapt to the company’s proposed changes to steel production in Port Talbot and elsewhere and Neath Port Talbot Council is committed to working alongside its Transition Board partners to do just that.

A great deal of expertise has been developed alongside generations of steelmaking in south Wales and it is essential that we sustain our capacity to meet the future needs of the sector”

Source: The Welsh Government