Kolkata: Tata Steel NSE 0.53 % is in “active discussions” with the UK government on “several options” for the future of its steelworks in Port Talbot, including the possibility of shutting its blast furnaces and replacing them with the greener electric arc furnaces.

The proposal to shut the plant’s two blast furnaces is being strongly opposed by the steelworkers’ unions, which say the move will lead to huge job losses. The Port Talbot plant is Tata Steel’s largest steel making facility in the UK.

A spokesperson for Tata Steel Europe told ET the company is in “active discussion with the UK government on several options for the future of Port Talbot operations. This includes potential cooperation and participation from the government to create a sustainable, decarbonised footprint for the future”. “Given prevailing market conditions and disruption caused by the Covid-19 pandemic, it is clear that the current Port Talbot operations face structural challenges that need to be urgently addressed,” the spokesperson said.

According to media reports, Tata Steel’s plan to clean up the site’s carbon emission is linked to its effort to obtain financial support through the government’s Project Birch fund.