Britain hands $621 mln to Tata Steel, 3,000 jobs could go

britain-hands-$621-mln-to-tata-steel,-3,000-jobs-could-go
Britain hands $621 mln to Tata Steel, 3,000 jobs could go

The British government plans to invest 500 million pounds ($621 million) into Tata Steel to decarbonize its Welsh site. This funding package aims to secure the future of the country’s steel industry but puts around 3,000 jobs at risk. The total funding package for Britain’s largest steel works is 1.25 billion pounds, with Tata contributing 750 million pounds for the transition to lower-emission electric arc furnaces. While the deal is expected to safeguard 5,000 jobs, Tata Steel UK currently employs over 8,000 people, raising concerns about potential redundancies due to the less labor-intensive nature of electric furnaces. Business and trade minister Kemi Badenoch believes the deal is necessary to save jobs and prevent the end of steelmaking in the region. Tata Steel had previously warned that without government assistance, the Port Talbot site could face closure. The adoption of electric furnaces is expected to reduce the country’s total carbon emissions by approximately 1.5%, with Port Talbot being the largest single carbon emitter in the UK.

The British government has faced pressure from businesses to support the transition to green energy. Company leaders have highlighted that the United States and the European Union have benefited from subsidies and incentive schemes, putting Britain at a disadvantage. The 500 million pound steel grant is one of the largest state support packages in UK history. In July, the government provided undisclosed financing to Tata Group, the parent company of Tata Steel, for the construction of an electric vehicle battery plant in England. British Steel, owned by Chinese company Jingye, which operates coal-fired blast furnaces in Scunthorpe and employs around 4,000 staff, hopes to receive a similar grant in the future. The steel industry in Britain directly employs 39,800 people and supports an additional 50,000 jobs in the supply chain. The government has stated that Tata Steel UK will engage in discussions with staff and unions regarding the deal. However, trade union Unite has criticized the government for not investing more in Port Talbot and failing to secure job guarantees with Tata. Unite general secretary Sharon Graham has pledged to fight to save existing jobs and create more opportunities in the steel industry. The domestic steel-making sector is crucial for Britain’s national security as it is involved in the construction of warships, fighter jets, and supports the manufacturing and transport sectors.

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Hi, I'm Alex Perez, an experienced writer with a focus on lifestyle and culture news. From food and fashion to travel and entertainment, I love exploring the latest trends and sharing my insights with readers. I also have a strong interest in world news and business, and enjoy covering breaking stories and events.

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