Tata Steel Signs 500 Million Pound-Deal With UK The project would bolster UK's steel security and would be the first major step towards decarbonisation of the local steel industry
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"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," Tata Group Chairman N Chandrasekaran said in a statement. The UK government announced that it had agreed a joint investment package with Tata Steel for Britain's largest steelworks in Wales, including a grant worth up to £500 million.
"The proposed investment will preserve significant employment and presents a great opportunity for the development of a green technology-based industrial ecosystem in South Wales. We look forward to working with our stakeholders on these proposals in a responsible manner," added the statement.
The project would bolster UK's steel security and would be the first major step towards decarbonisation of the local steel industry, reducing direct emissions by 50 million tonnes over a decade. With a high degree of circularity, it would leverage strategic, domestically available scrap steel and promote local value addition within the UK. The proposed project would ensure continuity of steel making in Port Talbot after the transition, and transform Tata Steel UK into a sustainable, capital-efficient and profitable business. With UK Government support, the project has a robust investment case.
"Tata Steel UK has been facing significant challenges due to the heavy end facilities approaching their end of life. The proposed project, with one of the largest investments in the UK Steel Industry in recent decades, provides an opportunity for an optimal outcome for all stakeholders. We will undertake a meaningful consultation with the Unions on the proposed transition pathway in the context of future risk and opportunities for Tata Steel UK," said T V Narendran, Tata Steel's Chief Executive Officer and Managing Director.
Tata Steel UK will soon commence consultation on the proposal and the transition period including potential deep restructuring for the carbon-intensive, unsustainable iron and steelmaking facilities at Port Talbot, where many of the existing 'heavy end' assets —such as blast furnaces and coke ovens—are reaching the end of their operational life. The proposed investment would reduce the Port Talbot site's carbon emissions by around 5 million tonnes a year.
