Tata Steel, Fitch said, would replace its blast furnaces with more cost-efficient and environment-friendly electric arc furnace (EAF)-based steelmaking capacity.
The upgrade is a result of the revision in Tata Steel s Standalone Credit Profile (SCP) from bb to bb+ due to reduced uncertainty and decreased financial risk associated with its UK operations.
The UK government has announced it will pay up to 500 million pounds to facilitate the green transition of steel maker s Port Talbot plant in South Wales, UK. This will entail replacing Port Talbot s blast furnaces with environmentally friendlier electric arc furnaces (EAF) for a total cost of 1.25 billion pounds.