Tata Steel, UK govt agree to a proposal for largest investment in steel industry
THE JHARKHAND STORY NETWORK Advertisement Jamshedpur, Sept 16: Tata Steel and the UK government have announced a joint agreement to a proposal…
THE JHARKHAND STORY NETWORK
Jamshedpur, Sept 16: Tata Steel and the UK government have announced a joint agreement to a proposal to invest in state-of-the-art electric arc furnace steelmaking at the Port Talbot site with a capital cost of £1.25 billion inclusive of a grant from the UK Government of up to £500 million, subject to relevant regulatory approvals.
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.
Commenting on the announcement, 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 has been an absolute pleasure to work with UK government in developing the proposed transition pathway for the future of sustainable steelmaking in the UK. 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.”
Tata Steel’s Chief Executive Officer and Managing Director, T V Narendran said: “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.”
