Tata Steel on Monday said the Dutch government has proposed support of up to 2 billion euros for a decarbonisation project at its IJmuiden plant.
The homegrown steel maker and its European arm, Tata Steel Nederland (TSN), have signed a Joint Letter of Intent with the Government of the Netherlands and the Province of North Holland.
"Pursuant to extensive discussions, the Government of the Netherlands and the province of North-Holland, Tata Steel and TSN have agreed an intended framework for the integrated project in TSN and signed a non-binding JLoI for the first phase of transition to low CO2 steel production and to improve a healthy living environment around the IJmuiden site," Tata Steel said.
The Dutch government intends to support up to 2 billion euros. Additionally, TSN has made an application to the EU Innovation Fund for 0.3 billion euros.
TSN has not yet completed the full engineering of the integrated project and therefore not finalised the total spend, the company said, adding that the remaining amount is expected to be funded by a combination of the cash generated and contributed by Tata Steel Nederland, project financing debt, and funding procured by Tata Steel over the period of project spend.
TV Narendran, CEO & Managing Director, Tata Steel and Chairman of the Supervisory Board of Tata Steel Nederland said, “We would like to thank Minister Hermans, her colleagues in the Cabinet and the team from the Netherlands Government and from the province of North-Holland who have engaged constructively and painstakingly with us over the last 2 years to complete this first step in our journey towards creating a sustainable long-term future for Tata Steel Nederland." Tata Steel owns a steel manufacturing plant at IJmuiden in the Netherlands with an estimated capacity of 6.75 MTPA of liquid steel in FY25.
The company adopted a comprehensive transformation programme to maximise production efficiencies, lower fixed costs and optimise product mix and margins at the Netherlands facility. Tata Steel was in discussions with the government there seeking support to execute its plans.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
