The UK government and Mumbai-headquartered Tata Steel have reached a preliminary agreement over a funding package regarding the Port Talbot plant in South Wales. The package is part of a £1.25 billion ($1.55 billion) plan to decarbonize Port Talbot’s operations. However, concerns over jobs and the potential effect on local steel prices remain.
A September 15 announcement from the company said that under the agreement, Tata Steel would receive a grant of up to £500 million ($620 million) from the state. This would go toward replacing Port Talbot’s operating blast furnaces with electric arc furnaces. However, the group noted that the agreement remains subject to approval from various regulatory bodies. The parties must also perform a number of information and consultation processes and finalize the terms and conditions. It remains to be seen how this will impact steel prices.
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