Report from this newspaper On September 2, according to British media reports, the British government is negotiating with Tata Steel UK to provide it with an aid package worth 500 million pounds (approximately US$619 million), aiming to ensure the future of the British steel industry healthy growth.
According to the current agreement between the two parties, Tata Steel UK will use the aid funds to build a new electric arc furnace at its steel plant in Port Talbot, UK, and promote the transition to more environmentally friendly steel production methods.
According to foreign media reports, compared with the traditional blast furnace production process, the factory’s electric furnace production process requires fewer operators, which will inevitably lead to the unemployment of some old employees of Tata Steel UK. Currently, Tata Steel UK employs approximately 4,000 people at its steel plant in Port Talbot. The company has also previously stated that it may lay off 3,000 employees in the future.
The specific terms that the two parties have reached are still subject to change, and the final agreement is expected to be finalized as early as September. The two sides had been negotiating for several months on the specific amount.
In May this year, Tata Steel stated that there was “huge uncertainty” in the development of its business in the UK, citing the lack of clear support from the local government for its prospects.
Tata Steel UK says it aims to create a greener steel mill, which can only be achieved with financial help from the government.