Tata Steel Closer to Funding Deal with the UK Government

SEATTLE (Scrap Monster): Leading steelmaker Tata Steel is in advanced stages of talks with the UK government on a potential funding deal to secure the future of its Port Talbot steelmaking operations. The funding deal estimated at £500 million is expected to ensure continuity of operations at the plant.

According to sources, the funding package is unlikely to save around 3,000 Port Talbot jobs that are at risk. However, it will help the company to provide assistance to employees who are at risk of losing jobs as part of the proposed transition of the plant from conventional blast furnace operations to green steelmaking, by way of construction of new electric arc furnaces (EAFs).

Both the company and the government sources expressed hope that a potential funding deal could be finalized by the end of the current week, although the timeline is subject to minor adjustments. Tata Steel will invest around £700 million from its own funds towards modernization of the Port Talbot plant. It must be noted that the steelmaker had sought for higher funding from the government during the initial stages of negotiation.

Tata Steel’s Port Talbot steel facility employs nearly 4,000 workers, thus making it the largest facility in the UK.

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