The new UK Government has offered Tata Steel additional support to set up new projects as the newly-elected Labour party attempts to save jobs which are stake due to large-scale operational restructuring at the company’s Port Talbot unit.
Incidentally, the liberal Voluntary Redundancy Aspiration programme, which closes on Wednesday, has received 1,700 applications so far.
TV Narendran, Managing Director, Tata Steel, told businessline that the noise raised pre-elections over job losses have settled and has turned very positive now.
“The UK Government is now saying whatever has been agreed is fine, but can we give you more money to set up new facilities for creating fresh jobs,” he said.
The government wants the company to explore downstream and upstream projects including setting up DRI, scrap processing units, galvanising and colour coating lines.
Before the elections the UK Government has announced £3 billion fund to support steel industry’s energy transition.
“There is no concern that they are wanting to derail the project. Now, they are saying come with your proposal and if there’s something which works for you and us, we can give you more money,” he said.
Redundancy programme
On the redundancy programme, Narendran said about 1,700 people have indicated that they would like to take the package but there are discussions to retain some of them as they are people with specialised talent whom the company may need in future.
The final numbers accepted under the package will depend on granular level of planning and job matching, he said.
In fact, the number of people to be retrenched itself will come down from 2,800 because about 200 people would have left due to natural attrition including superannuation.
The closing down of existing blast furnaces has nothing to do with the grant of £500 million.
“We will have to bring it down because it is also a bit unstable and there are a lot of protocols to follow when you shut down some of these facilities,’ said Narendran.
Tata Steel UK expects to get government waive off duty on import of slabs and coils to maintain its upstream facilities operations.
“The issue on import levy will be sorted out in this quarter. It was delay due to change in government. However, the import levy has not stopped the company from shipping from India. There are no issues on import of slabs but it is more to do with hot rolled coils,” he said.