Port Talbot steelworks’ owner Tata Steel seeks £500m loan from UK Government
- Talks are at an early stage and no agreement is likely to be announced soon
- Tata Steel’s large customers, such as car makers, have stopped production
- The manufacturer has also been hit by a rise in raw material costs
The Indian owner of Port Talbot steelworks has approached the UK Government for a £500million loan.
Tata Steel has reportedly asked for a commercial loan that would be repayable when demand for steel from its sites in Wales recovers.
Its request is being considered by the Treasury and the Department for Business, Energy and Industrial Strategy, Sky News reported. Talks are at an early stage and no agreement is likely to be announced soon.
Loan: Tata Steel’s large customers, such as car makers, have stopped production
The move comes after several of Tata Steel’s large customers, such as car makers, stopped production.
A spokesman told Sky: ‘We continue to work with both the UK and Welsh governments to identify what support is available.’
The manufacturer has also been hit by a rise in raw material costs. China’s decision to reopen following the pandemic contributed to high iron prices despite a slump in global demand.
Roughly 1,500 of Tata Steel’s 8,000 UK workers have been furloughed.
Separately, British Steel, which is owned by China’s Jingye, is set to resume production at its plant in Skinningrove on Teesside with 300 furloughed workers returning tomorrow.