Tata Steel trying to get financial support of UK government to keep its UK operations afloat its UK

1 Nov 2022 , 09:38 AM

According to CEO T V Narendran, Tata Steel would be able to decide on its future course of action in relation to its UK company based on how the British government responds to the steelmaker’s request for financial support to maintain the firm in the European country.

According to reports, Tata Sons was considering selling up its steel operations in the UK because there was little chance that the British government would provide the anticipated switch to green energy with a £1.5 billion subsidy package. However, a corporate representative stated that Tata Steel is actively pursuing financial backing from the UK government for its operations there.

Tata Steel, a significant domestic steel producer, employs 8,000 people nationwide throughout its businesses and operates the largest steelworks in the UK, located in South Wales.

For the factory to remain operational over the coming years, Tata Sons stated that it would need the financing to replace the carbon-intensive blast furnaces with electric arc furnaces. News reports stated that Tata Sons doesn’t see much use in waiting interminably for assistance from the UK government, which is “sitting on the fence” and several departure alternatives are being considered.

The Tata Group, which has a sizable corporate presence in the UK and has been for several years, has been outspoken about the need for government support in order to be successful.

According to a report released today by Tata Steel, its consolidated net profit for the three months ended in September fell 87% year over year (YoY) to Rs1,514 crore. The substantial decline in net profit was caused by increased expenses and subpar operational performance. Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the entire company fell 62% year over year to Rs6,060.4 crore.

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