It is being dubbed as one of the “largest” UK government support packages in history.
New Delhi: The United Kingdom and Tata Steel on Friday announced a joint investment package worth 1.25 billion pound, including a government grant of 500 million pound, for the country’s largest steelworks in Wales. Dubbed as one of the “largest” UK government support packages in history, the investment at the Port Talbot would modernise production with state-of-the-art Electric Arc Furnace steelmaking and reduce Britain’s entire carbon emissions by around 1.5%.
Reacting to the development, British Prime Minister Rishi Sunak called it “a big day for UK steel”.
“We’ve agreed a joint 163;1 billion investment with Tata Steel to save thousands of British jobs and secure the future of the steel industry in Wales. This follows the 163;4 billion investment we secured from Tata Group in July to create 4,000 jobs,” Mr Sunak posted on X (formerly known as Twitter).
A big day for UK steel 🇬🇧
We’ve agreed a joint £1 billion investment with @TataSteelLtd to save thousands of British jobs and secure the future of the steel industry in Wales.
This follows the £4 billion investment we secured from @TataCompanies in July to create 4,000 jobs. https://t.co/2XdrXWhOTP
— Rishi Sunak (@RishiSunak) September 15, 2023
UK Business and Trade Secretary Kemi Badenoch said that this is a “historic” package of support from the government.
“It will not only protect skilled jobs in Wales but also grow the UK economy, boost growth and help ensure a successful UK steel industry,” she added.
British Finance Minister Jeremy Hunt said that the proposal is a “landmark moment” for maintaining ongoing UK steel production, supporting sustainable economic growth, cutting emissions, and creating green jobs.
“It is right that we are ready to step in to protect this world class manufacturing industry and to support a green growth hub in South Wales,” Mr Hunt said.
Commenting on the announcement, Tata Group Chairman N Chandrasekaran said that the agreement with the UK government is a “defining moment” for the future of the steel industry.