Tata Steel and the UK government have jointly agreed on a proposal to invest £ 1.25 billion in Electric Arc Furnace steelmaking at the Port Talbot site. The company disclosed that the government would provide up to £ 500 million.
According to the company, they plan to reduce direct emissions by 50 million tonne over the course of a decade. Tata Steel further stated that the proposed project would necessitate a restructuring of its balance sheet, potentially leading to the elimination of current cash losses in the UK operations and non-cash impairment of legacy investments.
Tata Steel, which employs approximately 8,000 people in Britain, reportedly cautioned that as many as 3,000 redundancies might be required in the future.
Tata Group Chairman, N Chandrasekaran, expressed, "The proposed investment will preserve significant employment and offers an excellent opportunity for the development of a green technology-based industrial ecosystem in South Wales. We anticipate collaborating with our stakeholders on these proposals in a responsible manner."
Tata Steel’s Chief Executive Officer and Managing Director, T V Narendran, also commented that with the support of the UK Government, they aim to transform Tata Steel UK into a modern, environmentally-friendly business.
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