Tata Steel UK’s Post

"𝐓𝐚𝐭𝐚 𝐒𝐭𝐞𝐞𝐥 𝐒𝐞𝐜𝐮𝐫𝐞𝐬 £𝟓𝟎𝟎𝐦 𝐟𝐫𝐨𝐦 𝐔𝐊 𝐆𝐨𝐯𝐞𝐫𝐧𝐦𝐞𝐧𝐭 𝐟𝐨𝐫 𝐏𝐨𝐫𝐭 𝐓𝐚𝐥𝐛𝐨𝐭'𝐬 𝐆𝐫𝐞𝐞𝐧 𝐌𝐚𝐤𝐞𝐨𝐯𝐞𝐫"⁣ ⁣ Tata Steel has secured £500 million in funding from the UK government to build a low-carbon electric arc furnace (EAF) in Port Talbot. This project will involve a total investment of £1.25 billion and aims to reduce emissions at the plant by 90%, contributing significantly to the UK’s green steelmaking. However, the shift from a blast furnace to an EAF is expected to make 2,800 jobs redundant out of the 8,000 employed.⁣ ⁣ 𝐏𝐞𝐫𝐟𝐨𝐫𝐦𝐚𝐧𝐜𝐞 𝐨𝐟 𝐭𝐡𝐞 𝐍𝐞𝐰𝐬:⁣ 𝐌𝐚𝐣𝐨𝐫 𝐈𝐧𝐯𝐞𝐬𝐭𝐦𝐞𝐧𝐭: Tata Steel’s transition to a low-carbon electric arc furnace marks a significant investment aimed at reducing emissions, modernizing its UK operations, and aligning with the government’s green initiatives.⁣ 𝐂𝐡𝐚𝐥𝐥𝐞𝐧𝐠𝐞𝐬: The change will result in significant job losses, and the company's UK operations reported an operating loss of £364 million in FY24.⁣ ⁣ 𝐅𝐮𝐭𝐮𝐫𝐞 𝐎𝐮𝐭𝐥𝐨𝐨𝐤:⁣ 𝐔𝐊 𝐎𝐩𝐞𝐫𝐚𝐭𝐢𝐨𝐧𝐬: Tata Steel expects its UK operations to break even or become slightly profitable in the second half of FY25. The company is also in discussions with the UK government regarding additional funding for new product lines to save jobs.⁣ 𝐆𝐥𝐨𝐛𝐚𝐥 𝐈𝐦𝐩𝐚𝐜𝐭: The shift to electric arc furnace technology could set a benchmark for low-carbon steelmaking across Europe, positioning Port Talbot as a leading hub for green steel.⁣ ⁣ 𝐂𝐨𝐧𝐜𝐥𝐮𝐬𝐢𝐨𝐧:⁣ Tata Steel's move towards sustainable steelmaking is a critical step for the future of the company and the steel industry. While the £500 million funding from the UK government supports this transition, the accompanying job losses and the uncertain financial turnaround of its UK operations pose significant challenges.⁣ ⁣ 𝐓𝐚𝐭𝐚 𝐒𝐭𝐞𝐞𝐥 ⁣ 𝐒𝐭𝐨𝐜𝐤 𝐏𝐫𝐢𝐜𝐞: ₹151⁣ 𝐌𝐚𝐫𝐤𝐞𝐭 𝐂𝐚𝐩: ₹1.8 trillion Rishabh Kale #ETnews #Tatasteel

𝗧𝗮𝘁𝗮 𝗦𝘁𝗲𝗲𝗹 𝘄𝗶𝗹𝗹 𝗽𝗿𝗼𝗰𝗲𝗲𝗱 𝘄𝗶𝘁𝗵 𝗶𝘁𝘀 £𝟭.𝟮𝟱 𝗯𝗶𝗹𝗹𝗶𝗼𝗻 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝘁𝗼 𝗯𝘂𝗶𝗹𝗱 𝗮 𝘀𝘁𝗮𝘁𝗲-𝗼𝗳-𝘁𝗵𝗲-𝗮𝗿𝘁 𝗲𝗹𝗲𝗰𝘁𝗿𝗶𝗰 𝗮𝗿𝗰 𝗳𝘂𝗿𝗻𝗮𝗰𝗲 𝗶𝗻 𝗣𝗼𝗿𝘁 𝗧𝗮𝗹𝗯𝗼𝘁 Following 7 months of formal and informal national level #discussions with the UK tradeunions, Tata Steel UK will proceed with its £1.25 billion #investment to build a state-of-the-art Electric Arc Furnace (#EAF) in #PortTalbot and commence closure of the existing heavy end assets in the following months     ☑ Largest investment in #UK #steelindustry for decades, safeguards steel sovereignty in #Britain, preserves 5,000 #jobs and secures future #supplies to #customers.  ☑ Tata Steel has informed the #tradeunions that Port Talbot’s two Blast Furnaces No.5 and No.4 will close by end of June, and by end of September respectively.   ☑ The multi-union proposal to maintain one #blastfurnace through the #transition would have incurred at least £1.6 #billion of additional #costs (including higher operating costs and higher capital expenditure), created significant #operational and #safety #risk, and put the business’s future continuity in jeopardy.  ☑ Discussions will continue with the trade unions during the next 2 weeks on a potential Memorandum of Understanding (#MoU) on the future ambitions of the #business and the impact of the restructuring on employees.  ☑ Tata Steel has offered its most generous severance terms ever to impacted #employees, under a #financialsupport plan, alongside wide-ranging retraining and community support schemes.  ☑ A Voluntary Redundancy Aspiration process will be launched across Tata Steel UK from the 15th of May 2024.  ☑ Tata Steel has begun preparations to place equipment orders for the Electric Arc Furnace by September 2024, begin enabling and preparatory works at the site by December 2024, and based on current permitting timelines, begin construction on the project by August 2025.   ☑ Tata Steel has secured most of the required substrate for the full transition period for the UK’s downstream mills.   ☑ Tata Steel has agreed detailed #terms with the UK #Government on the proposed #grantpackage to support the £1.25 billion investment, with final documents to be executed in the coming weeks. The news link is here: https://lnkd.in/dJ243k3E

Tata Steel Europe's path to decarbonization 🔸#TataSteel still in negotiations with Dutch gov for funding 🔸Europe's #steel industry faces difficult situation 🔸Industry needs to explain path to #decarbonization better to public Link to full interview in the comments ⬇️

🌍 The British steel industry is at a crossroads. Faced with high energy costs, cheap imports, and the urgent need to transition to greener production methods, the sector is undergoing profound changes. At the heart of this transformation is Tata Steel’s Port Talbot plant in South Wales, which is moving away from coal-fired blast furnaces to cleaner electric arc furnaces. While this shift is crucial for sustainability, it also brings challenges, including job losses and potential dependencies on imports for high-quality steel. As the UK navigates this pivotal moment, the role of steel in supporting key industries and the green transition cannot be overstated. The government's response will shape the future of this foundational industry. Read more about the future of UK steel here 👀: https://lnkd.in/dywKEcdx #UKSteel #Sustainability #GreenTransition #EconomicImpact #BritishIndustry #GreenEnergy

🏭 In September 2023, the UK government pledged £500 million to support Tata Steel in closing Britain’s last blast furnace in Port Talbot, South Wales. The funds will facilitate the installation of greener electric arc furnaces, which are less labour-intensive and recycle scrap metal. This transition is expected to reduce the UK’s carbon emissions by approximately 1.5%. 🚢 The Port Talbot deal has gained prominence as the government considers implementing the Carbon Border Adjustment Mechanism (CBAM). Under CBAM, overseas companies exporting goods to the UK must demonstrate payment for their carbon emissions or face a levy equivalent to the UK’s carbon price. This measure prevents “carbon leakage” and ensures fair competition for British manufacturers committed to net-zero emissions. Curious about CBAM and its impact? Learn more in our latest Policy Explainer below ⤵ #exporting #emissions #ukeconomy #ukgovernment #climatechange

Tata Steel Europe's path to decarbonization 🔸#TataSteel still in negotiations with Dutch gov for funding 🔸Europe's #steel industry faces difficult situation 🔸Industry needs to explain path to #decarbonization better to public Link to full interview in the comments ⬇️

What are the socioeconomic effects of decarbonisation investments in the steel industry? Steel plays a key part in the modern world, serving as a vital component of manufacturing activities and as an essential material used in every aspect of our lives. In a new case study, our Global Sustainability Model (GSM) was used to quantify Tata Steel Nederland's full economic contribution to the Dutch economy in 2022. Read the full case study here: https://okt.to/zF3f1e #TataSteel #Netherlands #decarbonisation

The #steel industry faces a critical juncture. The urgent need to #decarbonize clashes with the economic realities of transitioning to greener practices. But what if there's a way to achieve both? Our recent study with Tata Steel Nederland reveals a compelling truth: investing in green steel isn't just environmentally responsible — it's a powerful economic catalyst. Using our proprietary Global Sustainability Model (GSM), we quantified the ripple effect of Tata Steel's green investments. The results? A significant boost to jobs, gross value added (GVA), and tax revenue in the Netherlands. This demonstrates that a sustainable future can also be a prosperous one. The urgency of climate change cannot be overstated and the GSM is more than just a tool; it's a compass guiding businesses across various industries towards a resilient, low-carbon future. The time for action is now, and the GSM empowers businesses to make informed, strategic decisions that drive both profitability and environmental responsibility. Ready to unlock the economic potential of sustainability for your business? Discover how our GSM can provide tailored insights and guide your journey towards a greener future. Reach out for more information! #sustainability #steel #industry #decarbonization #economicgrowth #GSM #OxfordEconomics

The steel industry faces a critical juncture. The urgent need to #decarbonize clashes with the economic realities of transitioning to greener practices. But what if there's a way to achieve both? Our recent study with Tata Steel Nederland reveals a compelling truth: investing in green steel isn't just environmentally responsible — it's a powerful economic catalyst. Using our proprietary Global Sustainability Model (GSM), we quantified the ripple effect of Tata Steel's green investments. The results? A significant boost to jobs, gross value added (GVA), and tax revenue in the Netherlands. Ready to unlock the economic potential of sustainability for your business? Discover how our GSM can provide tailored insights and guide your journey towards a greener future. Reach out for more information! #sustainability #steel #industry #decarbonization #economicgrowth #OxfordEconomics

UK Steel comments on Tata UK announcement Tata Steel UK has announced today proposals to restructure its UK business as it transitions to green electric arc furnace steelmaking. UK and Welsh governments, along with Tata Steel, have established a Transition Board with up to £100 million to support affected workers and their communities and an additional £130 million to a comprehensive support package for affected employees, including redundancy terms, community programmes, skills training, and job-seeking initiatives. Responding to today’s announcement, UK Steel Director General, Gareth Stace, said: “Today’s announcement demonstrates the difficulty of operating in such a challenging steel market, with low steel demand, softening prices, and increasing costs. Decades of an uncompetitive business landscape have led to a lack of historical capital investment. Ageing assets at the end of their life means some companies must make impossible choices ahead of significant investment in green steelmaking in Port Talbot. “The UK steel industry is at a critical turning point. We need a domestic steel sector to build a strong, resilient, low-carbon economy, but the industry faces steep challenges on the path to complete decarbonisation in little more than a decade.“ "The next few years will determine our future, and Government must continue its pledge to support the UK steel sector. It is time to accelerate commitments to deliver competitive electricity prices, grow green public procurement of steel, and ensure a trade remedies regime that backs British business.” Read in full here: https://lnkd.in/eZHuNh-G