The British government has agreed to give a grant of 500 million pounds to Tata Steel. This investment will be given to help reduce carbon emissions at Tata Steel’s Wales plant. During initial talks, Tata Steel had demanded a huge amount from the British government for this project.
Tata Group Chairman N Chandrasekaran said that the agreement with the British Government is very important for the future of the steel industry as well as the UK industrial value chain. This investment will bring thousands of jobs and provide a huge opportunity for the development of a green technology based industrial ecosystem in South Wales.
The company had sent a notice to the stock exchanges on September 15 regarding this agreement. This Tata Steel plant in Port Talbot city of South Wales was on the verge of closure. But now it has announced a deal to build a modern electric arc furnace steel plant at the Port Talbot site with an investment of £1.25bn.
According to reports, Tata Steel had demanded a huge amount from the British government for this project. But this deal was done with a government grant of 50 crore pounds. After the company gets all the necessary approvals and certificates, this project can be started within 36 months.
UK steel Industry
As per commonslibrary.parliament.uk website there are more than 1100 Steel companies in UK which generate 33,400+ jobs. Since year 2000 the steel production of UK is continuously falling. In 2000 UK Steel production was 15 million mt, In 2021 it was 7.2 million mt, In 2022 it was 7 million mt. As per S&P Global Commodity Insights, the steel production of UK in 2023 will be record low.
In 2022, UK had produce 7 million mt of steel.
China is the world’s largest Steel producer. In 2022, China has produced 1,018 million mt steel.