Tata Steel Update: Tata Steel has announced that it has signed an agreement with the UK government for grant funding of 500 million pounds for the green steel project to be built at a cost of 1.25 billion pounds at Port Talbot, Wales, United Kingdom. Tata Steel has informed about this deal in a regulatory filing.
In a regulatory filing filed with the stock exchange, the company said, this is the largest investment made in the United Kingdom steel industry in the last few decades. According to the company, this project, to be completed at a cost of $ 1.25 billion, will protect Britain’s sovereignty in the matter of steel, as well as secure the steel making work in Port Talbot and due to this, about 5009 jobs will also be saved. Tata Steel said that under the partnership, a state of the art electric arc furnace steel plant will be built at the Port Talbot site at a cost of 1.25 billion pounds, in which the British government will provide assistance of 500 million pounds.
According to Tata Steel, this new asset will help reduce the UK’s overall industrial carbon emissions by 8 per cent and Port Talbot by 90 per cent. According to Tata Steel, in addition to its 750 million pound investment, the company has deployed global engineering and project capabilities for the project and will benefit further from a 500 million pound grant from the UK government.
According to the company, it has started public consultation and is working closely with the authorities to obtain all approvals by November 2024 and large-scale site work will start by July 2025. The company said that the steel plant will become operational in the next three years. On this partnership, Tata Steel MD and CEO TV Narendran said, with the support of the UK government, this highly complex and ambitious plant at Port Talbot has the potential to develop into one of Europe’s most prominent centers in terms of steel manufacturing. He said, this project will serve to accelerate economic regeneration and job creation for South Wales.
Tata Steel was waiting for this agreement with the UK government for a long time. If it did not get help from the UK government, Tata Steel could exit the UK steel business.
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