British govt commits $629 m funding for Tata Steel’s Port Talbot unit.

Tata Steel is in advance talks with the British government to get funding £500 million ($629 million) for securing the future of Port Talbot steelworks in South Wales.

The funding would be alongside £700 million to be pumped in by Tata Steel India and a commitment by the company to build an electric arc furnace, said Sky News.

In response to a questionnaire of businessline, the company said it is continuing to discuss with the UK government a framework for continuity and decarbonisation of steelmaking in the UK amidst very challenging underlying business conditions, given that several of its heavy-end assets are approaching the end of life.

Given the financially constrained position of UK business, such significant change is only possible with government investment and support, as also seen in other steelmaking countries in Europe, where governments are actively supporting companies in de-carbonisation initiatives, it added.

About 8,000 people are working in Tata Steel, Britian and Sky News reported that the company had warned that it may need to make 3,000 redundancies in future.

HBL