News of Monday, 18th September 2023
Deal between Tata Stal and British Govt.
1.25 billion pound investment agreement for steel production in Britain. The deal saw the conversion of coal-fired steel production at the Port Talbot plant to a low-carbon electric arc furnace.
New Delhi, on 18th, a deal was made between the Indian company Tatasteel and the British government on Friday. UK PM Rishi Sunak announced an investment package of 1.25 billion pounds for Adil. The deal is to convert coal-fired steel production at the Port Talbot plant to a low-carbon electric arc furnace.
UK PM Rishi Sunak tweeted this and said the deal would save thousands of British jobs and secure the future of the steel industry in Wales. He described Friday as a historic day for UKSteel, adding that it had agreed to a £1 billion investment with TataSteel.
The British PM said that this deal will not only save jobs but also modernize production. Also, this will boost the economy. It is to be noted that the UK economy is ranked 8th in the world and is constantly trying to move ahead in the manufacturing sector.
UK Finance Minister Jeremy Hunt said that Tatasteel’s £1.25 billion joint investment with the UK is a historic moment for the UK manufacturing sector.
Located in South Wales, this steel factory employs more than 8,000 employees. In addition, around 12,500 people are employed in the supply chain and the British government’s Department of Business and Trade claims that the deal will save more than 5,000 jobs.
According to the terms of the agreement, while the UK government will provide a grant of up to 500 million pounds, Tatasteel will invest approximately 700 million pounds from its internal resources in the steel production facility to be built at Port Talbot over the next four months. In which the company is planning to set up a 3 million ton EAF at Talbot. Notably, the Port Talbot Steelworks is the UK’s biggest carbon emitter so the UK government is considering replacing the dirty blast furnace.