U.K. agrees major joint investment plan with Tata Steel for Welsh steelworks

U.K. government and Tata Steel agree GBP 1.25B investment package for Wales' largest steelworks, including GBP 500M grant. Expected to safeguard 5000 jobs and reduce U.K.'s carbon emissions by 1.5%. Support for affected staff and local economy with up to GBP 100M funding.

The UK on September 14 announced that it had agreed a joint investment package with Tata Steel for the country’s largest steelworks in Wales, including a grant worth up to GBP 500 million – dubbed one of the largest British government support packages in history and a “defining moment” for the steel industry.

As part of the agreement, the Indian steel giant is expected to invest GBP 1.25 billion, including the government grant, in a new Electric Arc Furnace and related facilities for greener steel production at Port Talbot in South Wales, currently the U.K.’s largest single carbon emitter.

The Department for Business and Trade (DBT) said the proposal, which is subject to information and consultation processes led by Tata Steel, has the potential to safeguard over 5,000 jobs across Britain.

“The UK government is backing our steel sector, and this proposal will secure a sustainable future for Welsh steel and is expected to save thousands of jobs in the long term,” said U.K. Business and Trade Secretary Kemi Badenoch.

“This is an historic package of support from the UK government and will not only protect skilled jobs in Wales but also grow the UK economy, boost growth and help ensure a successful U.K. steel industry,” she said.

Tata Steel U.K. employs over 8,000 people, including at Port Talbot, which was under serious threat without substantial investment. The company also supports around 12,500 further jobs in the upstream supply chain.

“The agreement with the UK government is a defining moment for the future of the steel Industry and indeed the industrial value chain in the U.K.,” said Tata Group Chairman N. Chandrasekaran, who had been working with the Prime Minister Rishi Sunak led government in developing a "transition pathway" for sustainable steelmaking in the U.K.