Mumbai (Uttam Hindu News): Tata Steel UK and the UK government on Friday announced a joint agreement on a proposal to invest £125 crore in state-of-the-art electric arc furnace steelmaking at the Port Talbot site. The investment includes a £500 million grant from the UK government.
This amount will be used to modernize the plant and reduce carbon emissions. The project will strengthen the UK’s steel security and will be the first major step towards reducing carbon emissions in the local steel industry, reducing direct emissions by 50 million tonnes over a decade.
Tata Group Chairman N. Chandrasekaran said, “The agreement with the UK Government is a defining moment for the future of the steel industry and indeed the industrial value chain in the UK. “It is a great pleasure to work with Her Majesty’s Government and Prime Minister Rishi Sunak to develop the proposed transition path to the future of sustainable steelmaking in the UK.”
The project will take advantage of strategic, domestically available scrap steel and promote local value addition within the UK.
The proposed project will also involve restructuring of Tata Steel’s balance sheet, potentially eliminating existing cash losses in the UK operation and non-cash impairments on legacy investments.
During the transition period and project phase, Tata Steel UK will work intensively to ensure uninterrupted and reliable supply of products to meet customer and market commitments, including additional steel substrate from stable supply chains to feed its downstream units. Import is also included.
Chief Executive Officer and Managing Director of Tata Steel T.V. Narendran said, “Tata Steel UK faces significant challenges due to a large number of facilities nearing the end of their life. The proposed project is one of the largest investments in the British steel industry. The recent decade offers an opportunity for optimal outcomes for all stakeholders. We will work to transform Tata Steel UK into a green, modern future-ready business.”