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In a bid to secure the future of the steel industry in the country, the UK Government is reportedly in advance talk over a 500 Million Pound ($600 Million) financial package with Tata Steels, one of the country’s leading steel producers.
According to the Sky News report, “The funding would be pumped into the Port Talbot steelworks in south Wales, while Tata Steel’s Indian parent would sign off £700m of capital expenditure over a multi-year period.”
Commenting on the development, Labour MP for Aberavon, Stephen Kinnock on X (formerly Twitter) said, “Steel is a strategic industry that underpins our entire economy. It provides tens of thousands of highly skilled jobs, it’s vital for our national security, and it’s key to achieving net zero. Failure to invest in our steel industry would be the very definition of a false economy”
“All investment is welcome, but electric arc furnaces aren’t the only route to steel decarbonisation: hydrogen etc. must also be in the mix, so all types of steel can keep being made, & future of every steel plant safeguarded. Unions MUST be fully involved & workforce MUST support the plan,” he added.
As a part of the deal, Tata Steel would be required to commit to the government to building electric arc furnaces to reduce carbon emissions.