Tata Steel is likely to exit the UK (UK) steel business soon, as per reports. Due to alleged little or no government support, Tatas may soon exit that market, The Economic Times reported.
Tata Steel may exit the UK steel business as there is little hope of a £1.5 billion subsidy package for a proposed transition to green energy such as that provided by the Liz Truss government, The Economic Times reported citing a person familiar with the matter.
The report even added that Tata Sons said the funds were needed to replace carbon-intensive blast furnaces with electric arc furnaces. This will also be done over the next few years to keep the factory running properly. Therefore, a person familiar with the matter reportedly said that the company does not want to wait endlessly for confirmation from the UK government on this.
“Going out of business also supporting local communities has never been a philosophy of our group but should be recognized and supported by the government as well,” an executive familiar with the development told ET.
All of these developments come moments after Tata Sons’ repeated discussions with the UK government where it was reported that, in the absence of support, they may only have one option to exit the market/business.
Currently, Tata Steel is seeking support for its UK business in two ways, according to an ET report. The company especially wants the UK government to provide policy support by driving the transition to green steel and ensuring a cost competitive landscape. At the same time, his party also wants the support of the British government through a partnership in financing the project. Outlook Business cannot independently verify these details.