Tata Steel share price touched a new 52-week high on Monday after the company signed a joint agreement with the UK government to invest £1.25 billion at the company’s facility in Port Talbot, Wales.
Tata Steel’s stock price touched intraday high of Rs 134.85 and low of Rs 131.85. Tata Steel share price opened at Rs 134.75 apiece on BSE.
The Tata group company and the UK government announced a joint agreement to invest £1.25 billion in electric arc furnace steelmaking at the Port Talbot site. This includes a grant from the UK Government of up to £500 million. The Port Talbot project will reduce direct emissions by 50 million tonnes over a 10-year period. Further, the project would also involve Tata Steel’s balance sheet being restructured with potential elimination of the current cash losses in the UK operations and non-cash impairment of legacy investments.
According to the company’s exchange filing, the project would increase the UK’s steel security and be the first significant step towards the local steel industry’s decarbonization, resulting in a reduction of direct emissions of 50 million tonnes over a ten-year period. With a high degree of circularity, it would make use of domestic scrap steel that is strategically available and encourage local value addition in the UK.
The proposed project would ensure that steelmaking would continue in Port Talbot after the switchover and make Tata Steel UK a lucrative, capital-efficient, and sustainable business. With the support of the UK Government, the project has a compelling investment case.
