The United Kingdom on Friday announced a 1.25 billion pound joint investment package with Tata Steel for the country’s largest steelworks in Wales, including a 500 million pound government grant, which will help protect thousands of jobs and boost the British economy. Will help promote.
The government grant has been dubbed one of the largest British government aid packages in history and a “defining moment” for the country’s steel industry.
As part of the agreement, the Indian steel giant is expected to invest GBP 1.25 billion, including a government grant, in a new electric arc furnace and related facilities for green steel production at Port Talbot in South Wales, which is currently the UK’s largest green steel production facility. is the largest single carbon emitter. ,
“This investment will modernize and secure a more sustainable future for the UK steel industry.
“It will also protect thousands of skilled jobs in the long term and help the economy grow,” British Prime Minister Rishi Sunak said in a post on social media platform X.
Tata Steel UK employs over 8,000 people, including at Port Talbot, which was at serious risk without adequate investment. The company also supports approximately 12,500 additional jobs in the upstream supply chain.
The Department of Business and Trade (DBT) said on Friday that the proposal, which is subject to information and consultation processes led by Tata Steel, has the potential to protect more than 5,000 jobs across the UK.
UK Business and Trade Secretary Kemi Badenoch said, “The UK Government is supporting our steel sector, and this proposal will secure a sustainable future for Welsh steel and is expected to save thousands of jobs in the long term.”
According to him, this is a historic package of support from the UK Government and will not only protect skilled jobs in Wales but will also “boost the UK economy, drive growth and help ensure a successful UK steel industry “.
Tata Steel and the UK Government have announced a joint agreement on a proposal to invest in state-of-the-art electric arc furnace steel making at the Port Talbot site with a capital cost of £1.25 billion, including government funding. Up to £500 million, the company said in a statement.
The new electric furnace is to replace existing coal-fired blast furnaces, which are nearing the end of their effective life and will result in a reduction of overall UK carbon emissions by around 1.5 percent.
The offer is subject to the finalization of relevant regulatory approvals, information and consultation processes and detailed terms and conditions.
“The agreement with the UK government is a defining moment for the future of the steel industry and indeed the industrial value chain in the UK,” said Tata Group Chairman N Chandrasekaran, who is working with the government in developing the “transition pathway”. For sustainable steelmaking in the UK.
“The proposed investment will preserve vital jobs and present a major opportunity for the development of a green technology-based industrial ecosystem in South Wales. “We look forward to working responsibly with our stakeholders on these proposals.”
Tata Steel Chief Executive Officer and Managing Director TV Narendran said that the proposed project, one of the largest investments in the UK steel industry in recent decades, offers an opportunity for optimal outcomes for all stakeholders.
“We will consult meaningfully with unions on the proposed transition path in the context of future risks and opportunities for Tata Steel UK,” Narendran said.
UK Chancellor Jeremy Hunt said the proposal is a historic moment to keep ongoing steel production in the UK – supporting sustainable economic growth, cutting emissions and creating green jobs.
Tata Steel UK will now inform and consult employees and unions on the agreed proposals.
“Unions should have had a seat at the table throughout this process, as it is clear that the interests of the workforce have not been considered in the rush to sign a deal to decarbonize on the cheap,” said Community Steelworkers, who is among them. One of the people concerned about the system said.
Stephen Kinnock, the opposition Labor MP for Aberavon, who covers Port Talbot, said investment into decarbonising was long overdue, but he was concerned ministers “did not consult steel unions enough”.
The UK Government said it would ensure support for any employees affected by the transition, with the Welsh Government and Tata devolved to setting up a dedicated transition board to support both affected employees and the local economy with up to £100 million of funding. Will work with steel.
Welsh Secretary David TC Davies said, “Steel manufacturing remains an important part of the Welsh economy and this huge support package from the UK Government ensures that the industry now has the opportunity to match its long and proud history in South Wales. There is a bright future.”