Indian company Tata Steel will invest 1.2 billion pounds ($1.5 billion) to support its Port Talbot steel plant in south Wales.
The fund will primarily be used to protect 5,000 of the 8,000 jobs and decarbonize the business. The second involves the installation of electric arc furnaces at the facility. According to Tata Steel representatives, the steel mill will phase out blast furnace production.
After more than a year of negotiations, the company announced in July 2022 that it needed government support of 1.5 billion pounds ($1.9 billion). The government planned to pay the company 300 million pounds ($370 million) but eventually decided to increase the subsidy.
The steel industry in the UK has suffered significantly in recent years due to rising energy tariffs and other macroeconomic factors. But in addition, the country's government announced a route towards decarbonization of the industry, placing the responsibility for this largely on metallurgical companies.