10-Year Investment Plan for UK Committed by Tata Steel (Download PDF)

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Tata Steel pledged to stay in Britain with a 10-year commitment to a one-billion-pound investment plan. Shares surged 5% after the company committed. The Indian steel giant has offered a number of guarantees to its staff at Port Talbot steelworks in South Wales.

Tata Steel, Port Talbot Plant

Tata Steel, Port Talbot Plant

Tata Steel, Port Talbot Plant

Long-term Investment Plan

  • A long-term investment plan to make the business more competitive.
  • Delivery of the transformation plan in the next couple of years.
  • Combined with structural solution for the British Steel Pension Scheme fund.
  • Essential to provide the affordability and financial self-sufficiency.
  • Investments and service its financial obligation to its stakeholders.

Deal Details

  • Minimum five-year commitment to two blast furnaces.
  • 1-billion-pound investment plan to support steel making at Port Talbot.
  • Replacing the current British Steel Pension Scheme.
  • Maximum contributions of 10% from the company.
  • Both sides agreed on principle that subject to the structural de-risking.
  • British Steel Pension Scheme fund from the business.
  • Further, based on achieving the necessary financial performance and cash flows as per the transformation.
  • Tata Steel will continue to invest across the UK sites to enhance the competitive position in the European steel industry.
Hope for Port Talbot

Hope for Port Talbot

Hope for Port Talbot

Hope for Port Talbot

  • The new investment would involve both reinvested profits.
  • Additional capital from Tata Steel’s Indian parent company.
  • Two blast furnaces could continue to operate at Port Talbot.
  • The investment could support mooted merger with ThyssenKrupp.
  • Return to healthy profit within two to three years.
Location of Port Talbot

Location of Port Talbot

Location of Port Talbot

- Published/Last Modified on: December 8, 2016

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