Tata Steel to invest $ 2 billion to fund rejig of UK operations



Mumbai: Tata Steel will infuse $2.1 billion (Rs 17,408 crore) in its Singapore arm, to repay debt of its offshore entities and to “support the restructuring costs” of its loss-making UK operations. Further, it’ll convert debt devices price $565 million (Rs 4,661 crore) it holds within the Singapore arm into fairness shares. The fund infusion in addition to the conversion of debt into fairness will likely be carried out on this fiscal, mentioned Tata Steel.
The Indian firm owns 100% of Singapore arm known as T Steel Holdings, which in flip owns the abroad metal property together with the UK plant. T Steel Holdings posted a loss of Rs 4,367 crore in FY23. Tata Steel can even be elevating Rs 3,000 crore within the type of non-convertible debentures (NCDs). The firm has been elevating cash by means of NCDs from time to time.
Tata Steel is investing £1.25 billion ($1.6 billion) to construct a brand new electrical arc furnace (EAF) at its Port Talbot plant in UK, whereas deciding to shut down two blast furnaces at facility by Sept. The transfer will lead to axing of 2,800 jobs on the plant. “We will proceed with proposal to shut down heavy end assets this year, and set up EAF by 2027. This is a difficult period of change for our people… With respect to EAF, we will place equipment orders by Sept 2024 and have signed the agreement with UK National Grid securing high voltage connection, which will be available on schedule. We have as part of discussions with the unions, offered the best ever package of support for affected employees in Tata Steel UK. We have agreed to final terms of proposed grant package with UK govt to support the £1.25 billion investment,” mentioned Tata Steel’s administration.

Nilesh Desai
Nilesh Desaihttps://www.TheNileshDesai.com
The Hindu Patrika is founded in 2016 by Mr. Nilesh Desai. This website is providing news and information mainly related to Hinduism. We appreciate if you send News, information or suggestion.


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