- Saturday, March 01, 2025
By: Shubham Ghosh
Tata Steel is considering closing down its operations in the UK if its government does not extend adequate funding back-up for the decarbonisation transition project, the Hindu BusinessLine reported.
The company had sought a financial package of £1.5 billion from the government to back its decarbonisation plans that would include replacing blast furnaces with electric furnaces to reduce emissions of carbon, the report added.
But London had offered £300 million to the Indian steel-making company earlier this year and the latter has been in talks with the government for a higher support ever since.
TV Narendran, managing director, Tata Steel, told BusinessLine that the next one to two years will be crucial for the company’s operations in the UK as it is still discussing with the government about a bigger support.
“The UK government has come up with a proposal which is not close to what the company had asked and hence there is a conversation going on but the clock is ticking continuously,” he was quoted as saying by the news report.
“We do not have an infinite amount of time available with us. Of course, when we decide to shut down the UK plant we will follow the due process such as consulting with the unions and other statutory procedures,” he added.
The company’s business in Europe, especially the UK, has been a drag for the company for some time. During the fourth quarter ended March last year, Tata Steel Europe reported EBIDTA loss of Rs 1,641 crore (£160 million) compared to positive EBITDA of Rs 4,349 crore (£424 million) in the year-ago quarter.
