Tata Steel seeks new government funding as industry crisis deepens
The UK's biggest steel company is seeking fresh government funding amid delays to the transformation of its plant in Port Talbot - a request which threatens to cast a deeper shadow
By Sky News
Tata Steel has approached the Department for Business, Innovation, Science and Technology in recent weeks to discuss a new multi-million-pound support package, Sky News reports. The request comes as delays affect the transformation of its Port Talbot plant in south Wales.
The company already has a £500m government grant to help build an electric arc furnace at the site, as part of a £1.25bn investment. That plan was intended to put the new furnace into operation by early 2028.
Sky News says the timetable has now slipped because of delays to the grid connection, with Tata Steel concluding the furnace may not be running until late 2028 or early 2029. The report says the extra funding is being sought because higher project costs and lost sales from the delay are expected to increase the overall bill.
The exact amount Tata Steel is now seeking from Whitehall is unclear, although industry sources quoted by Sky News said it could run to hundreds of millions of pounds. Business Secretary Jonathan Reynolds has been briefed on the approach.