Indian company Tata Steel announced on Friday that it will close both blast furnaces at its plant in Port Talbot, British Wales, cutting 2,800 jobs, as part of a plan to make its unprofitable UK operations smaller and environmentally cleaner.

Tata plans to switch from coal-fired blast furnaces to electric arc furnaces, which emit less carbon — and need fewer workers — using a half-billion pound ($634 million) investment from the British government.

The company said it “will begin legal consultations as part of its plan to transform and restructure its UK business.”

“This plan aims to reverse more than a decade of losses and transition from older blast furnaces to a more sustainable green steel business,” she said.

The company said it expects to cut about 2,800 jobs, mostly in the next 18 months, with a further 300 at risk in the longer term.

The news is a major blow to Port Talbot, a town of about 35,000 people whose economy has relied on the steel industry since the early 20th century.

Unions called for one of the blast furnaces to remain open while the electric furnace was being built, which would have meant fewer jobs. They said that Tata rejected their proposal.

Unite said it would “use everything we can” to fight job losses, including organizing possible strikes.