Tata threatens to shut down its Port Talbot steel mill
Head of the Tata Group N Chandrasekaran has warned that the company could be forced to close its UK factory at Tata Steel without a UK government subsidy deal. about 1.5 billion pounds. Tata Steel has the largest steel mill in England Talbot Harbour in South Wales and employs approximately 8,000 people across its operations in the country. Speaking to ‘The Financial Times’, the head of the Tata Group said the company had been in talks with the government about it decarbonization plan and a deal must be made next year to save the country’s steel mills.
“The transition to a greener steel mill is an intention that we have… But this is only possible with financial aid from the government,” Chandrasekaran told the newspaper. “We have been having discussions for two years ago and we have to reach an agreement within 12 months. Without this, we will have to see the closure of the site,” he said.
Under the decarbonization plan, Tata plans to close it two blast furnaces at Port Talbot, stop primary steelmaking, and build instead two electric arc furnaces,’ said the report ‘The Financial Times’. These furnaces recycle spent steel and are less carbon intensive than blast furnaces. Building an electric arc furnace and decommissioning the blast furnace will be costly about 3 billion poundswith Tata seeking 1.5 billion pounds from the government, according to the report.
labor union has expressed deep concern over the threat of factory closures and called on the government to step in to help what it views as a vital industry. “Steel plays a vital role in all areas of the UK economy and Tata is a valuable producer of steel significant employer in the UK,” said a spokesperson for the British government. Tata Steel is one of Europe’s leading steel producers, with steel manufactures in the Netherlands and the UK, and factories throughout Europe.
The company’s tube products are used in a variety of industries, including construction, machine fabrication, energy, and automotive. Last month, Tata Steel said it had ambitions to go into production net-zero steel by 2050 at the latest and has reduced 30 percent of CO2 emissions by 2030. Most of that work needs to be done in South Wales, where the company’s largest operations are in Port Talbot.
At the time, Tata Steel said it was developing a detailed plan for this transition future steelmaking based on low CO2 technology and almost knowing which one is the best to help achieve its ambitions.
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