Tata Steel UK’s annual results have been announced today as losses of £364 million* for the year – a loss of nearly £1million a day for the year 2023/24.
Tata Steel UK annual revenues were £2,706 million and EBITDA loss stood at £364 million. Liquid steel production was 2.99 million tons while deliveries stood at 2.80 million tons.
Commenting on the future of the UK business, Mr T V Narendran, CEO and Managing Director Tata Steel, said: "We have decided to proceed with the proposed restructuring of heavy end UK assets and transition to greener steelmaking after due consideration of all the options over the last seven months in consultation with union representatives. We are committed to creating a low-CO2 steel business that preserves the majority of the jobs in UK while also creating economic opportunities."
Mr Koushik Chatterjee, Executive Director and Chief Financial Officer added: "We have been carefully considering the alternative proposal from the representative body of the UK trade unions and have concluded that maintaining one blast furnace till the transition would have incurred at least £1.6 billion of additional costs, created significant operational and safety risk, and delayed the EAF by two years. We have therefore discussed with the Unions and concluded national level consultation on the asset plan. We will proceed with our proposal to shut down heavy end assets this year, and setup the EAF by 2027.
"Maintaining one blast furnace till the transition would have incurred at least £1.6 billion of additional costs, created significant operational and safety risk, and delayed the EAF by two years."
"This is a difficult period of change for our people and we will do our upmost to support the affected employees.
"With respect to the Electric Arc Furnace, we will place equipment orders by Sep 2024 and have signed the agreement with the UK National Grid securing the 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 also agreed the final and detailed terms of the proposed grant package with the UK government to support the £1.25 billion investment.”
You can hear TV Narendran talk about the challenges and opportunities of decarbonising Tata Steel UK here: (3) SteelCast S3 E28: A new beginning for the steel industry - YouTube
*Earnings Before Interest Tax Depreciation and Amortisation
Full results are available here: tatasteel.com/media/20665/financial-results-for-the-quarter-and-financial-year-ended-march-31-2024.pdf
About Tata Steel UK
- The Tata Steel Group has been named one of the most ethical companies in the world, and is among the top producing global steel companies with an annual crude steel capacity of 34 million tonnes.
- Tata Steel in the UK has the ambition to produce net-zero steel by 2045 at the latest, and to have reduced 30% of its CO2 emissions by 2030.
- Tata Steel is the largest steelmaker in the UK with primary steelmaking at Port Talbot in South Wales supporting manufacturing and distribution operations at sites across Wales, England and Northern Ireland as well as Norway, Sweden, France and Germany. It also benefits from a network of international sales offices around the world.
- Tata Steel employs more than 8,000 people and has an annual crude steel capacity of 5 million tonnes, supplying high-quality steel products to demanding markets, including construction and infrastructure, automotive, packaging and engineering.
- Tata Steel Group is one of the world's most geographically-diversified steel producers, with operations and a commercial presence across the world.
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