Tata UK funding deal nears: reports

Tata Steel remains in talks with the UK government over support for the decarbonisation of its Port Talbot plant, the firm has said in response to media reports over the weekend.

According to Sky News, the UK government will offer Tata Steel £500 million ($631m) in funding, while Tata itself will commit £700m in capital expenditure. The news agency cites sources saying the terms of an agreement were subject to change, but that there were hopes of finalising it as early as this month.

However, the plan could come at a cost – the loss of 3,000 jobs over the long term, Kallanish notes.

“Tata Steel 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 end of life,” the steelmaker says.

“Given the financially constrained position of our UK business, any 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 adds.

Unite the Union general secretary Sharon Graham observes: “This government could make us the green steel capital of Europe – instead they are choosing to follow a job cuts agenda. Unite will leave no stone unturned in the fight for jobs. We will now be mounting a significant campaign on this issue and we fully expect the Labour Party to make a serious commitment to a better future for UK Steel.”

Adam Smith Poland