According to media reports, the UK government will give an emergency government loan worth hundreds of millions of pounds to Tata Steel within days in order to fund its UK operations which include its steelworks at Port Talbot in south Wales, with the aim to help preserve about 8,000 jobs in the steel industry. The company will have to give some commitments regarding its workforce and cutting carbon emissions in return for the state loan.
The company was seeking an emergency state loan worth up to £500 million, SteelOrbis understands. Under the terms of this loan, the company must have exhausted all other means of raising funds first, including the government’s Covid-19 support package.
In the UK, Tata Steel also operates facilities in Wales, Corby and Hartlepool, as well as Port Talbot.