Tata Steel (NSE:TATASTEEL) has reportedly approached the UK Government for additional funding as delays affect the transformation of its Port Talbot steelworks in Wales.
The company recently began discussions with the Department for Business over a new support package that could total hundreds of millions of pounds, Sky News reports.
The amount requested has not been disclosed. Tata Steel and the department declined to comment, meaning the discussions and any prospective funding remain unconfirmed publicly.
The request would be additional to a £500 million ($938.55 million) government grant awarded in 2023. That funding forms part of a planned £1.25 billion investment to replace Port Talbot’s blast-furnace operations with an electric arc furnace.
The new furnace was initially expected to begin operating in early 2028. However, reported delays to its grid connection could push commissioning to late 2028 or early 2029.
Sky News says Tata Steel expects the delay to increase project costs and reduce anticipated sales during the extended transition period. No revised project budget has been announced.
Port Talbot’s remaining blast furnace closed in 2024. The electric arc furnace development was intended to support continued steel production while reducing emissions from the site.
The transition was expected to preserve about 5,000 positions across Tata Steel’s UK operations, although approximately 2,500 jobs have already been removed.
The reported funding discussions come as UK steelmakers face competition from lower-priced imports and rising operating costs.
Tata Steel is an India-headquartered steel producer with operations in India, the UK, and the Netherlands, supported by iron ore and coal mining assets in India.
Write to France Pinzon at Mining.com.au
Images: Tata Steel
