(UNITED KINGDOM) The British government is reportedly engaged in advanced discussions with Tata Steel, the largest steel producer in the UK,regarding a £500 million ($629 million) funding arrangement aimed at securing the long-term viability of the Port Talbot steelworks in south Wales.
This financial aid would complement a £700 million ($881 million) commitment from Tata Steel’s parent company in India and a pledge from the firm to construct electric arc furnaces.
Advanced discussions with Tata Steel regarding £500 million funding
These electric arc furnaces are a more environmentally friendly method for steel production.
Efforts to secure state support for transitioning to electric arc furnaces, which are more environmentally sustainable, have been ongoing for months.
However, these negotiations have encountered challenges related to potential job losses, as electric arc furnaces typically require fewer employees.
Tata Steel currently employs around 8,000 people in the UK, and industry sources have suggested that the company might need to cut up to 3,000 jobs in the future.
Tata Steel has previously cautioned that without government assistance, it may have to contemplate site closures.
Tata Steel has not yet responded to requests for comments on this matter, while the UK’s Department for Business and Trade declined to comment on ongoing discussions.
