Tata Steel to close Port Talbot blast furnaces in UK; 3,000 jobs at stake: Reports
The Guardian. The unions proposed the idea of keeping the blast furnaces operational during the transition, at least till 2032.
However, Tata Steel rejected the proposal finding it to be unaffordable given Port Talbot’s losses, according to The Guardian report. After Port Talbot, the UK's only operational blast furnace at Scunthorpe is also likely to meet the same fate.
Tata Steel's UK business continued to be a major loss maker for the company over the past few quarters. The Indian steel maker witnessed a whopping loss of ₹6,511 crore in the July-September quarter of FY23-24 due to a ₹6,358 crore impairment charge related to a decarbonisation project at its Port Talbot plant in the UK.
“We have assessed the potential impact of the (Electric Arc Induction) EAF-based decarbonization project and restructuring in the UK," the company said in an exchange filing. The company had included a ₹2,746 crore impairment charge in its consolidated statements for the decarbonisation project and a ₹3,612 crore charge for restructuring and other provisions.
In September last year, the company also received the UK government's commitment of £500 million to help the firm overhaul the country’s biggest steelworks and keep it running. The payment will financially support Tata Steel in switching to a cleaner and more cost-effective steel production by transitioning its Port Talbot plant in South Wales.Milestone Alert!
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