Tata Steel and the UK government jointly announced an agreement to invest in state-of-the-art electric arc furnace steelmaking at the company’s Port Talbot site at a cost of GBP 1.25 billion pounds, including a UK government grant of GBP 500 million.

Tata Steel will restructure its balance sheet to reflect the current cash losses in the UK operations, and non-cash impairment of legacy assets, the company said after announcing the much awaited agreement with the UK government for its Port Talbot site. Legacy assets are those that have become obsolete or lost nearly all their initial value.

On September 15, Tata Steel and the UK government jointly announced the agreement to invest in state-of-the-art electric arc furnace steelmaking at the Port Talbot site at a cost of GBP 1.25 billion, including a government grant of GBP 500 million.

Speaking to analysts over a conference call after announcing the agreement, Executive Director and Chief Financial Officer Koushik Chatterjee said that there would be a cash outflow from Tata Steel’s balance sheet, but declined to quantify it.

“Based on the transition plan, there will be a cash outflow, it will depend on how we look at the transition and the restructuring. But whether it will be significant or not, depends on where we stand,” Chatterjee said.

Tata Steel and the UK government agreement is subject to regulatory approvals and finalisation of detailed terms and conditions.

“Tata Steel’s financial outlook will improve on account of the elimination of steady cash losses once the transition happens, and the ongoing parental support for the UK business,” said Chatterjee.

Tata Steel’s gross debt stood at Rs 75,561 crore at the end of fiscal 2021-22 after the company repaid debt of Rs 15,232 crore during the year. 激光设备展-钣金工业展-2024第二十四届广州国际激光设备、钣金工业展览会-巨浪展览- 2024 China(Guangzhou) Int’l Laser Equipment and Sheet Metal Industry Exhibition 2024钣金展，2024钣金工业展 2024钣金展会，2024钣金展览会，2024激光设备展，2024激光设备展会，2024激光设备展览会，2024广州钣金展，2024广州钣金展会，2024广州激光设备展，2024广州激光设备展会，广东激光设备展，中国激光设备展会，广东钣金展，中国钣金展会，2024钣金展会信息，2024激光设备设备展，2024激光设备博览会，2024钣金博览会-sheet metal Industry Exhibition,sheet metal expo, 2024 sheet metal exhibition, 2024 sheet metal expo, China sheet metal exhibition, China sheet metal expo,-Laser Industry Exhibition,Laser expo, 2024 Laser exhibition, 2024 Laser  expo, China Laser exhibition, China Laser expo