Tata Steel said it has been in discussions with the Dutch government on a proposed decarbonisation roadmap for the Ijmuiden factory in the Netherlands. This statement came as a clarification after a report stated that the Dutch government may contribute as much as €3 billion or $3.26 billion for the green transformation of the plant that has reportedly caused serious health and environmental problems in the surrounding area.
The company said that the plan for the transformation was disclosed in the March 31, 2024 financial results. Meanwhile, Tata Steel shares rose 1.83% to Rs 172.30 in early deals on Thursday. Market cap of the Tata Group firm climbed to Rs 2.15 lakh crore on BSE.
In March 2024, the Dutch Parliament formally gave a mandate to its government to negotiate the terms of potential support towards proposed decarbonisation efforts for Tata Steel Nederland. The government, subsequently, formulated a detailed framework of diligence, analysis, discussions and negotiations with Tata Steel which is expected to run over several months before potentially culminating in an agreed set of terms.
After that, the terms would need to be approved by the Netherlands Parliament as well as the board of Tata Steel.
“It may be premature to draw any final conclusions at this time and hence the company is not in a position to comment any further on the news reports appearing in the mainstream media,” it said, reassuring of its robust processes of compliance with disclosure obligations.
The report stated that the plant has been linked with “elevated lung cancer rates and reduced life expectancy in the local area”. It has also been fined multiple times for emitting toxic raw cokes, which is an essential ingredient for making steel.
The cleaning up of the plant requires expensive upgrades, the report highlighted. The government had resisted intervention fearing loss of jobs at the plant, which is one of the country’s top industrial employers.
