India’s Tata Steel Limited will infuse $2.5 billion into its Singapore unit, T Steel Holdings, to bolster its European business operations, the company said in a statement on Tuesday, May 13.
Tata Steel Limited owns the UK and Netherlands businesses through T Steel Holdings.
The investment is part of a broader strategy to bolster Tata Steel’s UK and Netherlands operations amid tightening environmental regulations and carbon compliance mandates in the region, it said.
The board-approved capital infusion is subject to prior approval from the Reserve Bank of India, as any foreign investment exceeding $1 billion per financial year requires regulatory clearance under India’s overseas investment norms.
Tata Steel's European businesses are currently undergoing a major transformation, driven by climate policy shifts and Europe’s Carbon Border Adjustment Mechanism (CBAM). The mechanism imposes a levy on carbon-intensive imports to level the playing field with European producers subject to stringent climate regulations.
The transition involves the closure of legacy blast furnace assets and a shift toward more sustainable production using electric arc furnaces (EAFs). These EAFs use recycled scrap and electricity instead of coal, significantly reducing carbon emissions.