Tata Steel is in advanced talks with the UK government to agree around GBP 500 million in state-backed funding to secure the future of its Port Talbot plant in South Wales, according to UK media reports this weekend.
The Indian steel major has been in long-drawn discussions related to the critical green transition of the UK’s largest steelworks, involving thousands of jobs in the country’s steel industry.
According to a report, both sides are now close to agreeing on a deal that would commit millions to the future of the Port Talbot steelworks.
“Tata Steel is continuing to discuss with the UK government a framework for continuity and decarbonisation of steel making in the UK amidst very challenging underlying business conditions given that several of its heavy end assets are approaching the end of life,” a Tata Steel spokesperson stated when asked about the development.
According to UK media reports, the draft plans close to being finalised include the UK government committing around GBP 500 million of funding and the Tata Group agreeing GBP 700 million of capital expenditure to help pay for a switch away from polluting coal-fired blast furnaces.
The Indian steel major would reportedly commit to building electric arc furnaces, which offer greener, less labour-intensive ways of producing steel than traditional blast furnaces.