India’s Tata Steel Limited will complete consolidated capital expenditure of $1.95 billion across its domestic and global operations in the current fiscal year 2023-24, company officials said on Tuesday, June 20.
Of the total capital expenditure, an estimated $1.2 billion will be directed to its domestic operations, the officials said.
In the UK, Tata Steel is still in “active detailed discussions” with the government relating to the future of its steel operations in that country, the officials said.
The management of Tata Steel UK will evaluate various scenarios concerning the future configuration of the business and will consult with relevant stakeholders before making strategic decisions. The officials emphasized that any decision-making process will also take into account market conditions, customer requirements, supply chain impacts, and the safety of employees.
Considering the UK's decarbonisation journey and increasing carbon costs, it has become evident that for the long-term sustainability of steelmaking, the Port Talbot plant must transition to alternative green technologies. These discussions are ongoing, and simultaneously, some of Tata Steel UK's existing heavy-end assets will reach the end of their life in the next few years.
Regarding Tata Steel's operations in Europe, Tata Steel Nederland is expected to incur a capex of $134 million for the relining of its blast furnace, which is already underway. The remaining capex will be primarily allocated to sustainability, environmental initiatives, and improvement projects, as outlined by the company leaders.