LONDON: The UK Government and Tata Steel have agreed on a proposed joint investment package which will secure a sustainable future for steelmaking at Port Talbot, in Wales, according to a statement from the Department for Business and Trade of the island country.
“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,” said Tata Group Chairman N Chandrasekaran.
According to the statement released on September 15, Tata Steel is expected to invest £1.25 billion, including a UK Government grant worth up to £500 million in a new electric arc furnace for greener steel production in Port Talbot, which is currently the UK’s largest single carbon emitter.
“This is a historic package of support from the UK Government and will not only protect skilled jobs in Wales but also grow the UK economy, boost growth and help ensure a successful UK steel industry,” said Business and Trade Secretary Kemi Badenoch.
Carbon emissions cut
The existing coal-powered blast furnaces, which are nearing the end of their effective life, will be finally replaced. The transition is expected to reduce the UK’s entire business and industry carbon emissions by 7 per cent. While Wales’s overall emissions will go down by 22 per cent, Port Talbot site’s emissions will decrease by 85 per cent.
“It is right that we are ready to step in to protect this world class manufacturing industry and to support a green growth hub in South Wales,” said Chancellor of the Exchequer Jeremy Hunt.
Employment preserved
About 8,000 people are employed by Tata Steel in Britain. In addition, it supports around 12,500 more jobs in the upstream supply chain.
“The proposed investment will preserve significant employment and presents a great opportunity for the development of a green technology-based industrial ecosystem in South Wales,” said Chandrasekaran.
The UK Government would ensure a broad range of support for any staff which is affected by the transition.
