No change in plan despite new UK government: Tata Steel
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MUMBAI: Tata Steel‘s strategy for its UK operations will remain unchanged amid concerns that its restructuring could face delays under the new Labour government that has come to power after a decade.
In September 2023, the previous govt led by the Conservative party had agreed to grant 500 million pounds to Tata Steel to help it transition from the carbon emission intensive blast furnace to green steelmaking through electric arc furnaces.However, the deal wasn’t formalised during the party’s term.
On Monday, responding to Tata Steel shareholders’ questions on the impact of the change in UK govt on its transition plans there, company chairman N Chandrasekaran said he doesn’t see any change in strategy, indicating that the metals giant will shut down its ageing blast furnaces at its Port Talbot, Wales plant, which would result in thousands of people losing their jobs.
Tata Steel had acquired the UK plant as part of its acquisition of the Corus Group in April 2007 for 6.2 billion pounds and since then, the unit has hardly made any money for the Indian company.
“We have had good discussions with both the previous and current govt. And we have been working closely with govt, the unions and local govt in Wales. Everybody is working together to make sure the project is on track,” Chandrasekaran said.
Tata Steel ceased operations of one blast furnace earlier this month and plans to shut the second one down in Sept. The existing steel making assets, which are near the end of their life, are operationally unstable and are causing unsustainable losses of one million pounds a day, the company said previously.
Last week, Fitch Ratings revised its outlook on Tata Steel to negative from stable due to uncertainties surrounding its UK operations.
In September 2023, the previous govt led by the Conservative party had agreed to grant 500 million pounds to Tata Steel to help it transition from the carbon emission intensive blast furnace to green steelmaking through electric arc furnaces.However, the deal wasn’t formalised during the party’s term.
On Monday, responding to Tata Steel shareholders’ questions on the impact of the change in UK govt on its transition plans there, company chairman N Chandrasekaran said he doesn’t see any change in strategy, indicating that the metals giant will shut down its ageing blast furnaces at its Port Talbot, Wales plant, which would result in thousands of people losing their jobs.
Tata Steel had acquired the UK plant as part of its acquisition of the Corus Group in April 2007 for 6.2 billion pounds and since then, the unit has hardly made any money for the Indian company.
“We have had good discussions with both the previous and current govt. And we have been working closely with govt, the unions and local govt in Wales. Everybody is working together to make sure the project is on track,” Chandrasekaran said.
Tata Steel ceased operations of one blast furnace earlier this month and plans to shut the second one down in Sept. The existing steel making assets, which are near the end of their life, are operationally unstable and are causing unsustainable losses of one million pounds a day, the company said previously.
Last week, Fitch Ratings revised its outlook on Tata Steel to negative from stable due to uncertainties surrounding its UK operations.
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