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Indian steel giant Tata Steel has announced that it will have to shut down its steel plants in the UK unless the government gives it an aid of £1.5 billion within a year to reduce carbon emissions.
“A transition to a greener steel plant is the intention that we have… But this is only possible with financial help from the government,” said Chandrasekaran to the newspaper. “We have been in discussions over the last two years and we should come to an agreement within 12 months. Without this, we will have to look at closures of sites,” said N Chandrasekaran, Chairman of Tata Group.
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Tata Steel is a major steel producer in Europe. It has production plants in the Netherlands, the UK, and other places across Europe. The company has the largest steelworks plant in the UK which is located in Port Talbot, South Wales and employs around 8,000 people.
Tata Steel has expressed its intent to produce net-zero steel by 2050 and reduce CO2 emissions by 30% by 2030. Under the decarbonization plans, Tata plans to close two blast furnaces at Port Talbot, stop primary steelmaking and instead build two electric arc furnaces, according to sources.
These furnaces recycle scrap steel and are not as carbon-intensive as blast furnaces. According to the company, the process of decommissioning the furnaces and building the electric furnaces would cost around £3 billion, of which the company is asking for £1.5 billion from the government.
Tata Steel is important to steel production in the UK as around 80% of the UK's steel production stems from the Port Talbot plant and a British steel plant at Scunthorpe. Worker's unions have expressed concern over the closure of the plant, which provides employment to around 8,000 people. They have asked the government to step in to help the industry.
The stock of Tata Steel closed at Rs 936.05 per share on Friday. Today the stock opened at Rs 935.00 per share.
Article by Aman Agarwal.
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