Tata Steel Requires Substantial Funding Support From the UK Government

SEATTLE (Scrap Monster): India-headquartered Tata Steel said that it is looking forward to substantial and permanent funding support from the UK government in order to keep its UK operations up and running.

Speaking to a television channel, T.V. Narendran, Managing Director, Tata Steel acknowledged that the company has received some Covid-19-related financial assistance from the government. However, the company expects a little more substantive and permanent support, which in turn will help it to bring down cost of production and enhance the product mix. Tata Steel Europe has been cash positive and neutral, he added.

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Meantime, the UK government reiterated its commitment to support a sustainable, long-term future for steelmaking in the country. The government is open in continuing to work with Tata Steel as it develops the business strategy for the future.

Recently, Tata Steel has announced plans to sell its European business, while keeping the UK business. Accordingly, it announced on Friday that Swedish SSAB is in talks with the company over acquisition of its Netherlands-based steelmaking operations. The company’s UK operations support around 8,000 jobs, with Port Talbot accounting for almost 50% of these jobs.