With signals of funding for a UK factory, Tata Steel increases by more than 3.5%

4 Sep 2023 , 01:31 PM

According to Sky News, Tata Steel is in advanced discussions with the UK government for approximately GBP 500 million in state-backed investment to assist its Port Talbot factory.

The stock was up 3.23% from its previous finish at Rs 131 as of 12:30 pm on the BSE, while India’s key Sensex increased by 0.08% to 65.436 points.

With thousands of jobs in the country’s steel industry at stake, Tata Steel is in advanced negotiations with the UK government for approximately GBP 500 million in state-backed finance to support its Port Talbot factory. According to Sky News, a deal is almost certainly close to being finalized.

Given that several of its heavy end assets are nearing end of life, Tata Steel is continuing to negotiate with the UK government a framework for continuity and decarbonization of steel manufacture in the UK despite extremely difficult underlying business conditions, a company spokesperson told PTI.

The Tata Group has agreed to contribute GBP 700 million in capital expenditures to the draft plans, which are almost finished. The UK government has committed to providing roughly GBP 500 million in funding.

According to the PTI article, these money will aid in the switch from dirty coal-fired blast furnaces to cleaner, more effective electric arc furnaces for making steel.

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