Tata Group has stated it is “very close” to securing £500 million in state aid as part of a deal with the British government to support greener steelmaking at Port Talbot.
Chairman of the Indian-owned corporation told the FT yesterday that talks are “going well” and a deal agreement is in sight.
Tata plans to close the plant’s blast furnace and renovate the site using greener electric arc technology that is less labour-intensive to operate.
However, the British government has been unable to protect “job guarantees” at the plant despite promising it previously. It is estimated that 2,500 job cuts are expected at the site in the coming months.
Tata’s wholly-owned subsidiary Jaguar Land Rover announced last year plans to build £4 billion gigafactory in Somerset, which will be the company’s first ever plant outside of India.
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