Tata Steel proposes additional support package of 130 million pounds for Port Talbot workers in UK
For the workers who would be affected as part of its transition plan in the United Kingdom, Tata Steel has proposed an additional financial ‘support package’ of around 130 million pounds, reported PTI on 4 February.
The company drafted a decarbonization plan for Tata Steel UK to reduce carbon emissions and save energy costs including installing new plant machinery with low-emission technologies.
The firm will close both the high-emission blast furnaces and coke ovens in a phased manner in 2024 and shift to an (electric arc furnace) EAF-based steel making at a cost of about 1.25 billion pounds, with 500 million pounds support from the UK government, company’s CFO Koushik Chatterjee said in an earnings call.
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“Tata Steel is acutely aware of the impact of its proposal to wind down the heavy end of Port Talbot on the individuals and the local community associated with our steel works, and we will meaningfully consult with our employees and work to provide them a fair, dignified, and considerate outcome,” he said.
The CFO said that Tata Steel proposes to commit more than 130 million pounds to a comprehensive support package for the affected employees, which is in addition to the 100 million pounds in funding for the Transition Board set up by the company along with the UK and the Welsh government, in which the company has contributed GBP 20 million.
Tata Steel CEO & MD T. V. Narendran said, “We have tried very hard for the last 15 years to support this (UK) business. But I think we have reached a stage where continuing as we did, is no longer an option. It is a difficult situation for our employees. We fully empathize with that.”
Narendran said that our employees. We fully empathize with that,” he said.
Tata Steel UK will be closing its first blast furnace by mid-this year while the second furnace is planned to be shut down in the second half of 2024, adding, the transition to EAF-based steel-making will save 50 million tons of CO2 emissions over a decade.
India-headquartered Tata Steel owns the UK’s largest steelworks at Port Talbot in South Wales and employs around 8,000 people across all its operations in the country.
In September 2023, Tata Steel and the UK government agreed on a joint investment plan of 1.25 billion pounds to execute decarbonization plans at the Port Talbot steel-making facility in Britain.
With agency inputs.
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Published: 04 Feb 2024, 09:00 PM IST
Ganesh
http://ganesh@finplay.inFinance enthusiast, Mutual fund expert.