Tata Steel and Britain are in discussions about a $629 million rescue package

4 Sep 2023 , 10:31 AM

According to Sky News on Saturday, the British government is in advanced discussions with Tata Steel, the nation’s largest steel maker, about providing 500 million pounds ($629 million) in funds to help safeguard the long-term survival of a significant portion of its steel industry.

According to Sky News, the money would be invested in the Port Talbot steelworks in south Wales along with $881 million ($700 million) from Tata Steel’s Indian parent firm and a pledge from the business to construct electric arc furnaces.

For months, British officials have been in discussions with Tata and British Steel, the two largest steel producers in the nation, regarding state assistance to help finance the switch to the more ecologically friendly manner of manufacturing steel from electric arc furnaces.

But because the new type of furnaces requires less workers, the negotiations have run into problems with possible job losses.

Tata Steel employs about 8,000 employees in Britain, and according to sources in the sector quoted by Sky News, the business has warned that it may need to make up to 3,000 redundancies in the future.

In the past, Tata Steel has issued warnings about the possibility of considering site closure in the absence of government assistance.

A Reuters request for comment was not immediately answered by the corporation, and the government’s Department for Business and Trade declined to comment on current talks.

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