Tata Steel's UK and Netherlands steel operations are experiencing a challenging period due to low steel prices. The company's financial results for the six months ending September 30th clearly reflect this negative impact. UK operations reported a £238 million EBITDA loss, with the second quarter alone registering a £147 million loss. This was partly attributed to the temporary closure of blast furnaces and a reduction in steel stock.
Tata Steel has begun its transition to green steel production after halting iron production at its Port Talbot plant. This transformation is supported by a £500 million grant from the UK government, and construction of a new facility is planned for early 2025. The company will maintain current operations by sourcing slab during the transition and has announced a comprehensive support package for affected employee
The Netherlands operations reported a £22 million EBITDA profit in the second quarter, despite low price impacts. Tata Steel is concurrently developing carbon reduction pilot projects and engaging with the government on related initiatives, demonstrating a commitment to future green steel production.
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