- 25 Jul 2022
- ICICIdirect Research
Tata Steel is likely to shut down UK operations if British Government doesn’t extend Euro 1.5 billion aid for green plans within the next one yearTATASTEEL - 105 Change: 0.90 (0.87 %)
News: Tata Steel is seeking aid to the tune of £ 1.5 billion (Rs 14400 crore) from British government within the next one year to help the steelmaker reduce its carbon emission. Tata Steel may shut UK operations if British Government doesn’t extend £ 1.5 billion aid for green plans.
Views: As per industry sources, as a part of its decarbonisation effort, Tata Steel is planning to close its two blast furnaces at the Port Talbot plant, stop primary steelmaking and instead build two electric arc furnaces. Electric arc furnace are used to recycle scrap steel and depending on the source of the electricity used, have significantly lower carbon emission. This Tata Steel’s decarbonisation plan will cost £3 billion, out of which it is seeking £1.5 billion aid from the British government. The Port Talbot plant has a capacity to produce 5 million tonnes of steel a year.