According to a report by Indian newspaper, The Economic Times, Tata Steel is likely to exit from its UK steel business soon due to a lack of government support.
Citing people familiar with the matter, the report stated that the company may shutter its UK-based steel business, as there is little hope of a £1.5 billion subsidy package for the proposed transition to green energy as given by the current UK government, headed by UK prime minister, Liz Truss.
The report added that Tata Sons, the principal investment holding company and promoter of Tata companies, has said that the mentioned funding is needed in order to replace carbon-intensive blast furnaces with electric arc furnaces.
“Exiting businesses which are also supporting local communities have never been our group philosophy, but it has to be acknowledged and supported by the government too.”
Anonymous executive, as reported to The Economic Times
“Exiting businesses which are also supporting local communities have never been our group philosophy, but it has to be acknowledged and supported by the government too,” an executive familiar with the development told The Economic Times.
Tata Steel is currently looking for support for its UK business in two ways, says the report. The company primarily wants the UK government to give a policy support by encouraging transition to green steel and ensuring cost-competitive landscape. Alongside this, it has requested the UK government’s support through the financing of the project.
Source: The Economic Times