Construction Industry News
Tata Group chairman Natarajan Chandrasekaran has warned that the company may be forced to close Tata Steel's UK plants without a UK government grant agreement worth around £1.5 billion. Tata Steel owns the UK's largest steel mill at Port Talbot in South Wales and employs approximately 8,000 people across all of its operations in the country.
Speaking to The Financial Times, the Tata Group chief said the company headquartered in Mumbai was in talks with the government about its plans to go low-carbon and that a deal should be struck next year to rebuild the country's steel plant. to save.
“We have been in talks for the past two years and we should come to an agreement within 12 months. Without it, we'll have to look at site closures," he said.
As part of decarbonization plans, Tata plans to close two blast furnaces at Port Talbot, stop primary steel production and build two electric arc furnaces instead, according to The Financial Times, citing people familiar with the details.
These furnaces recycle scrap steel and are less carbon intensive than blast furnaces.
Construction of the electric arc furnaces and decommissioning of the blast furnaces would cost around £3 billion, with Tata demanding £1.5 billion from the government, according to the report.
Unions have expressed deep concern over the threat of factory closures and have called on the government to step in to help what is seen as a vital industry.
"Steel plays a vital role in all sectors of the UK economy and Tata is a valued steel producer and major employer in the UK," said a British government spokesman.
The Indian steel giant is one of Europe's leading steel producers, with steel production in the Netherlands and the UK and factories across Europe.
The company's tubular products are used in a wide variety of industries, including construction, mechanical engineering, energy and automotive.
Last month, Tata Steel said it had the ambition to produce zero steel by 2050 at the latest and to have reduced 30 percent of CO2 emissions by 2030.
The bulk of that work will have to be done in South Wales, the company's largest operational site in Port Talbot.
At the time, Tata Steel had said that it is developing detailed plans for this transition to future steel production based on low-carbon technologies and that it almost knows which will best help it achieve its ambitions.
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