Tata Steel's operations in Europe are not generating sufficient cash flow to make new investments in obsolete assets or to switch to green steel operations, the company said in a statement.
Tata Steel had long been in talks with the British authorities for financial support. The Rishi Sunak government has offered £300 million in aid for green transformation, but the company says this is not enough.
The company believes that the possible consequences of the end-of-life closure of capacity in the UK will not affect parent company Tata Steel India, especially its financial flows, as it is a matter of millions, not billions of dollars.
In addition, the company's financial report for 2022/2023, published this week, signalled uncertainty about Tata Steel UK's ability to continue operations. This conclusion was reached following a stress test designed to assess the vulnerability of businesses due to a possible economic downturn in Europe. At the same time, it was stated that the business, which focuses on operations in the Netherlands, has sufficient liquidity to overcome a possible crisis.
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