UNCERTAINTY has gripped the UK’s steel industry
amid job cuts and investment-intensive decarbonisation requirements.
Traditional steel production, relying on coal to
produce iron, is regarded as incompatible with the UK’s legally binding climate
action commitment to reduce carbon emissions in the coming decades.
The government is reported to be willing to offer
£300 million each to Tata Steel UK and its rival British Steel to adopt green
technologies.
However, the support is just a fraction of the
estimated £3 billion Tata’s steel plant at Port Talbot in south Wales needs to
spend for the transition.
Last month, the company said it would study the
government’s support plans for the steel sector and consider it carefully
before making strategic decisions on the future of its UK business.
Previously, the company liked its future in the UK
to state support for its move towards less carbon-intensive steelmaking. Tata
Steel employs some 8,000 people in the UK.
High energy costs have also made steelmakers
rethink their strategies to stay competitive in the market.