RNS: Tata Steel (India) and the UK government have jointly announced a groundbreaking agreement to invest a total of $1.54 billion in Electric Arc Furnace steelmaking at the Port Talbot site, encompassing a capital cost of £1.25 billion, inclusive of a grant from the UK Government of up to £500 million. This monumental partnership is subject to the necessary regulatory approvals.
Tata Steel’s visionary project is expected to fortify the UK’s steel security and herald the initial significant stride towards the decarbonization of the local steel industry. The endeavour aims to reduce direct emissions by a staggering 50 million tonnes over the course of a decade.
In an official statement, Tata Steel affirmed, “The proposed project would ensure continuity of steelmaking in Port Talbot after the transition and transform Tata Steel UK into a sustainable, capital-efficient, and profitable business. With UK Government support, the project has a robust investment case.”
Furthermore, in a demonstration of Tata Steel’s commitment to advancing global research and innovation in materials science for a sustainable future, the company has unveiled its intention to allocate approximately £20 million over a span of four years to establish two additional Centers of Innovation & Technology in the UK. These centers will be located at the Henry Royce Institute in Manchester, dedicated to advanced materials research, and at Imperial College London, focused on research in Sustainable Design & Manufacturing.
British Prime Minister Rishi Sunak lauded the momentous development, expressing via Twitter, “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 grow the economy.”
Tata Steel UK currently employs over 8,000 individuals, including those at the Port Talbot site, which faced an uncertain future without substantial investment. Additionally, Tata Steel supports approximately 12,500 additional jobs in the upstream supply chain.
N Chandrasekaran, Chairman of the Tata Group, remarked, “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. It has been an absolute pleasure to work with His Majesty’s Government and the Honourable Prime Minister Rishi Sunak in developing the proposed transition pathway for the future of sustainable steelmaking in the UK. The proposed investment will preserve significant employment and present a great opportunity for the development of a green technology-based industrial ecosystem in South Wales. We look forward to working with our stakeholders on these proposals in a responsible manner.”
UK Business and Trade Secretary Kemi Badenoch emphasized, “The UK Government is backing 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.”
