Home Business Entrepreneurship Ratan Tata Saves UK Steel Industry, Promises To Invest Billion Pounds

Ratan Tata Saves UK Steel Industry, Promises To Invest Billion Pounds

Tata Sons interim Chairman Ratan Tata has promised to save the UK Steel industry as he plans to invest near about billion pounds in the next 10 year. The commitment came as being the saviour of the wrecked ship where he helped million of workers losing their jobs after the firm embattled steelworks last year. The step recommended only as a move by Mr Tata, as he held the baton after sacking Cyrus Mistry from the post.

RATAN-TATA-REINSTALLS-TATA-STEEL-PLANT-IN-UK

As per the reports forwarded by Times of India/Sunday Times titled under ‘Man of Steel’, the board meeting with the Directors in Mumbai discussed the reinstating of Steel to Tea business on which the entire empire is based on. The decision of saving Tata Steel’s Welsh Plant at Port Talbot came as one of the most revived decision as Mr Tata always felt the urge to not to abandon the UK’s largest steelworks. The idea of let going the plant never made the interim Chairman comfortable thus re-establishing the deal for billion pounds in the next decade.

The Welsh Plant, worth 6.1 billion pounds, were acquired in 2007 with the name of Corus thus backing the entity through every up and down since the acquisition. The idea of disowning the Steel Plant in Port Talbot would mean pushing thousand of workers towards poverty as the area is considerably one of the most backwards and poverty-stricken in the whole United Kingdom.

According to Ratan Tata, The immediate target of 200 million pounds provides sufficient funds to invest in the business and to manage working capital needs. However, beyond this level, the business will balance the needs of all its stakeholders, including the financing of dividends. 

Almost 11,000 British employees work at the Tata Steel Plant where it has also been promised that no dividend charges will be levied until the profit surges up to 200 million pounds a year. The Port Talbot located in South of Wales will be open till 2021 with no decrements, no sack for the next 5 years. Furthermore, Ratan Tata urged the employees to sign and accept the British Steel Pension Scheme for future purpose.

Tata Steel trended on 424.15 at 15:15 p.m. in National Stock Exchange (NSE) with its Market Capital rising at Rs. 41,791.40 crores. It depreciated by 6.10 points as its P/E ratio stood at 21.12 wherein P/B ratio at 1.45.

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