Government ‘in talks with Tata Steel to provide £500 million funding package’
The government is reportedly in advanced talks with Tata Steel to provide a £500 million funding package with the aim of securing the long-term future of a key part of the UK steel industry.
According to Sky News, the deal will secure £1 billion for the group’s Port Talbot steelworks, but could lead to up to 3,000 job losses.
The report says that under the draft plans, the government will commit around £500 million of public funding, while Tata Steel’s Indian parent company will agree capital expenditure of £700 million over a multi-year period.
The company will reportedly commit to manufacturing electric arc furnaces, which offer less labor-intensive methods of steel production than traditional blast furnaces.
Industry sources familiar with the talks told Sky that up to 3,000 UK-based employees could lose their jobs.
It is believed that around 4,000 workers are employed at Port Talbot.
A Tata Steel spokesperson said in a statement released to Sky News: “Tata Steel continues to discuss with the UK Government a framework for the sustainability and decarbonisation of steelmaking in the UK amid extremely challenging underlying business conditions, given It happened that it has many difficult endings. The asset is approaching end of life.
“Given the financially constrained position of our UK business, such a significant transformation is only possible with government investment and support, as has also been seen in other steelmaking countries in Europe where governments are actively supporting companies in decarbonisation initiatives. supporting.”
Unite’s general secretary Sharon Graham criticized the reported plans and said the union would “launch a significant campaign” to protect jobs.
He said, “This government could have made us the green steel capital of Europe – instead they are choosing to follow a job-cutting agenda.”
“United will leave no stone unturned in the fight for jobs. We will now launch a significant campaign on this issue and we sincerely hope that the Labor Party will make a serious commitment to a better future for UK Steel.”
Tata Steel, the Treasury and the Department for Trade and Commerce have been contacted for comment.
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