Tata Steel to Exit UK Steel Business If Denied Government Funding

SEATTLE (Scrap Monster): India-headquartered steel conglomerate Tata Steel expressed hopes that the UK government will provide £1.5 billion funding for the transition to green energy, so as to ensure continuation of the company’s presence in the UK. In the absence of government aid, the company even plans to make an exit from UK steel operations.

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Tata Steel owns Port Talbot, which along with Scunthorpe steelworks by British Steel accounts for more than 85% of the total steel produced in the UK every year. The Port Talbot operations, which employs around 4,000 people directly and several thousands of people indirectly, need to transition to green energy, so as to meet the county’s net zero commitment.

N. Chandrasekharan, Chairman, Tata Group noted that company may be forced to shut the Port Talbot plant, if the government funding for EV transition is denied. He noted that other European countries are witnessing government investment in steel companies in support of their initiatives to ensure reduced carbon emission from plants.

For instance, ArcelorMittal Durkirk steelmaking site had received funding from French government, while the Liberty Group was granted government help for its steel plants in France and Romania.

Earlier in 2017, Tata Steel has sold its UK specialty steel business to Liberty Steel Group, as part of its restructuring efforts.