Tata Steel likely to exit from UK , THIS may be the reason
science 2023-11-30 23:05:03159949
The UK government is unlikely to give Tata Sons a subsidy package worth 1.5 billion pounds for the anticipated switch to green energy. Tata Sons is contemplating leaving Tata Steel's UK operations as a result. Tata Sons claims that over the following few years, it will be necessary to switch out the carbon-intensive blast furnaces with electric arc furnaces in order to keep the factory operating. According to sources who spoke to ET, Tata Sons doesn't see much point in waiting impatiently for support from the UK government, which is "sitting on the fence" and considering different exit strategies. With a capacity to produce five million tonnes of steel annually, the Tata Group has had a sizable commercial presence in the UK for many years. It has been outspoken about the need for government assistance to continue operating. An executive privy of the development said to ET, “Existing businesses which are also supporting local communities have never been our group philosophy, but it has to be acknowledged and supported by the government too.” The executive went on to say that the company has been discussing high operating costs for the last two years, and there ought to be a resolution to this concern already. “The only other option is closure of sites,” said the executive. According to a spokesperson of Tata Steel, the company was still in “active and detailed discussions with the UK government.” The spokesperson for Tata Steel stated in response to inquiries from ET that the company is looking for support from the UK government in two ways: first, at the policy level, by promoting the switch to green steel and ensuring a landscape that is cost-competitive; and second, through collaboration in the financing of the project, given the size of the investment and the financially precarious position of Tata Steel's UK business. The spokesperson added that there are currently no talks with potential buyers for the UK company.
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