On 20th August, Tata Steel announced that it continues to remain in talks with the government on possible financial aid for the company's operations in the UK. Responding to increasing media speculation and concern regarding the company’s operations in Port Talbot and Coventry, Chairman N Chandrasekaran said "talks are not over”. According to him the UK operations are not profitable and that it "continues to be a drag”.
The Financial Times had previously reported, "The government concluded the Indian multinational was sufficiently financed and didn’t qualify for taxpayer support.”
The talks are critical for the future of the company's operations in the country. Its other major facility in Europe, located in the Netherlands has also faced problems in the form of protest from employees.
The Tata Steel Chairman signalled that the auditor's note was more a regulatory requirement, and said, "Tata Sons and Tata Steel continue to do what is right."
Talking about the European operations, Executive Director and CFO Koushik Chatterjee, said, "Tata Steel Europe's performance was affected by lower deliveries and a sharp decline in European spreads to an unsustainably low level. “
At the AGM, Chandrasekaran said that the company is striving to find a solution in this fiscal year. "It could be matter of months before we have a decision. If it's not a successful outcome, we will be thinking about alternate options. We are looking for a solution that is lasting," he said.
