UK government may inject nearly ￡900 million and pick up equity stake in Tata Steel UK
2020-07-27 10:58:58 [Print]
Tata Steel's ongoing talks with the UK government to secure the future of its biggest steel works at Port Talbot include a proposal for the government to inject nearly ￡900 million and picking up an equity stake in Tata Steel UK.
Tata Steel UK operations include an integrated steel plant at Port Talbot and some other product manufacturing sites including, Shotton, Newport, Hartlepool. Tata Steel Europe operates a large integrated steel plant at IJmuiden in the Netherlands.
UK media reports said last Saturday said that Tata Steel has presented proposals to the UK government in recent weeks aimed at securing a state injection of close to ￡1bn into its UK operations. In return, Tata Steel could give equity stake of up to 50% to UK taxpayers - amounting to a semi-nationalization of Britain's largest steelmaker, the reports added. Media reports also indicated that the proposal - one the various options being considered - could involve Tata Steel writing off an equivalent quantity of debt owed to it by the UK business.
The discussions with the UK government involve various options including the possibility of shutting down its blast furnace operations at Port Talbot and switch over to the greener alternative of electric arc furnaces. The move is linked to participation by the UK government to sustain Tata Steel's operations in the UK in the wake of the Covid-19 pandemic.
Tata Steel UK operations include an integrated steel plant at Port Talbot and some other product manufacturing sites including, Shotton, Newport, Hartlepool. Tata Steel Europe operates a large integrated steel plant at IJmuiden in the Netherlands.
UK media reports said last Saturday said that Tata Steel has presented proposals to the UK government in recent weeks aimed at securing a state injection of close to ￡1bn into its UK operations. In return, Tata Steel could give equity stake of up to 50% to UK taxpayers - amounting to a semi-nationalization of Britain's largest steelmaker, the reports added. Media reports also indicated that the proposal - one the various options being considered - could involve Tata Steel writing off an equivalent quantity of debt owed to it by the UK business.
The discussions with the UK government involve various options including the possibility of shutting down its blast furnace operations at Port Talbot and switch over to the greener alternative of electric arc furnaces. The move is linked to participation by the UK government to sustain Tata Steel's operations in the UK in the wake of the Covid-19 pandemic.
