Tata Steel today said the UK government has agreed to support its planned investment of £1.2 billion to improve infrastructure at its Port Talbot plant.
In a media statement issued on Friday, the company is expected to receive a grant of up to £500 million from the UK government. The partnership aims to develop environmentally sustainable steel production and will be the largest investment proposal received by the UK steel industry in decades.
“The proposed investment will save significant employment and present a great opportunity to develop a green technology-based industrial ecosystem in South Wales. We look forward to working responsibly with our stakeholders on these proposals,” Tata Group Chairman N. Chandrasekaran said in a statement and called the deal a ‘defining moment’ for the future of the UK steel industry.
The development comes at a time when heavy industries worldwide are moving towards environmentally sustainable projects with low carbon emissions and taking green energy center stage.
The development is expected to revive Tata Steel’s business in the UK, which has faced significant challenges. “Tata Steel UK faces significant challenges due to heavy facilities reaching the end of their lives. The proposed project, one of the largest investments in the UK steel industry in recent decades, offers an opportunity for an optimal outcome for all stakeholders,” said T V Narendran, Chief Executive Officer, Tata Steel.
In a press statement, Tata Steel reiterated that it will seek meaningful consultations with employee unions on the proposed relocation.
“With the support of the UK Government and the dedicated efforts of Tata Steel UK employees with all stakeholders, we will work to transform Tata Steel UK into a green, modern, future-ready business,” added Narendran.
The proposal will increase steel safety for the UK and push the industry towards decarbonization, expected to reduce emissions by 50 million tonnes over the next ten years. “With a high degree of circularity, this will facilitate strategic, domestically available scrap steel and promote local value addition within the UK,” Tata Steel said in a statement on Friday.
