October 14, 2022
2 mins read

Tatas mull exit from UK steel business

The spokesperson further informed that it is not currently in any discussions with potential buyers for the UK business…reports Asian Lite News

The UK government is unlikely to provide a 1.5 billion pound subsidy package to Tata Sons for the anticipated switch to green energy. As a result, Tata Sons is considering exiting Tata Steel’s UK operations.

According to Tata Sons, in order to keep the factory running, it will be necessary to replace the carbon-intensive blast furnaces with electric arc furnaces over the next few years. Tata Sons doesn’t see much use in waiting interminably for assistance from the UK government, which is “sitting on the fence” and is looking at various exit options, sources told Economic Times.

The Tata Group has significant business presence in the UK for many years with its Port Talbot plant having a capacity to produce five million tonnes of steel a year. It has been vocal about the need for support from the government to remain viable.

An executive privy of the development said to ET, “Exiting businesses which are also supporting local communities have never been our group philosophy, but it has to be acknowledged and supported by the government too.”

The executive further said that high operating costs are a matter of concern and the company has been in discussion over the last two years and there should have a resolution to this concern already. “The only other option is closure of sites,” said the executive.

According to a spokesperson of Tata Steel, the company was still in “active and detailed discussions with the UK government.” While responding to queries from ET, the spokesperson said that Tata Steel is seeking support from the UK government in two forms- first, at the policy level, by encouraging the transition to green steel and ensuring a cost-competitive landscape; second, through collaboration in the financing of the project, given the magnitude of investment and the financially stilted position of Tata Steel’s UK business. The spokesperson further informed that it is not currently in any discussions with potential buyers for the UK business.

ALSO READ-Trinamool welcomes Tatas to make big investments in Bengal

Previous Story

Dominant Hyderabad FC defeat NorthEast United 3-0

Next Story

German annual inflation hits record 10% in Sept

Latest from -Top News

EU, China United on Climate, Split on Rest

Climate pact offers rare unity as trade rifts, Ukraine war, and economic tensions dominate EU-China summitChina and the European Union struck a rare note of unity on climate change Thursday, issuing a

Hungary Pays the Trump Price

Despite his success in wooing Trump’s conservative base, Hungary is among the EU nations most vulnerable to Trump’s incoming tariff blitz Hungary’s populist Prime Minister Viktor Orbán has spent years forging close

Meta Muzzles Election Ads

Meta to Halt Political Ads in EU, Citing Legal Uncertainty Over New Rules Meta, the parent company of Facebook, Instagram, and Threads, announced on Friday that it will suspend all political advertising

Holy War Talk

Russian officials have downplayed the Vatican’s potential role as a mediator, citing its location within NATO-member Italy, which has firmly supported Ukraine throughout the war. In a move that may signal an

Greece Battles Blazes, Heatwave Chaos

With temperatures soaring above 38°C (100°F), and dry, windy conditions prevailing, fires are spreading fast. A wildfire tore through a northern suburb of Athens on Saturday, forcing residents to evacuate as Greece
Go toTop

Don't Miss

UK PM announces boost in defence spending 

The Prime Minister committed to “the largest sustained increase since

Wallace against sending tanks to Ukraine

Defense Secretary said emphasising that equipment from Soviet-era should be