Tata Steel plans to reduce some of its activities in the UK

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.