Tata Steel Limited issued a clarification on June 6 regarding recent news articles suggesting potential financial support from the Netherlands for the green transformation of its IJmuiden factory. This clarification came in response to reports by Bloomberg on June 5, 2024.
Tata Steel stocks were trading positively, up by 2.07% at ₹172.70 on June 6, 10:45 p.m., on the BSE.
Bloomberg reported concerns regarding health and environmental issues associated with Tata Steel’s IJmuiden plant. According to the Dutch National Institute for Public Health and the Environment, emissions from the plant have been linked to health risks in the surrounding area.
Tata Steel confirmed ongoing discussions with the Dutch Government regarding a decarbonization roadmap. The Dutch Parliament mandated negotiations for potential support terms for Tata Steel Nederland’s decarbonization proposal.
The Dutch Government has outlined a comprehensive framework involving due diligence, analysis, discussions, and negotiations with Tata Steel, expected to last several months. The finalized terms will require approval from the Netherlands Parliament and Tata Steel’s Board.
Tata Steel emphasized its commitment to making accurate disclosures in compliance with regulatory requirements. The company stated that it is premature to draw conclusions at this stage, despite media speculation.
