Tata Steel UK reported a significant rise in pre-tax losses for the fiscal year 2023/2024, reaching £1.12 billion, compared to £279 million the previous year. The increase in losses is mainly due to restructuring expenses linked to the closure of blast furnaces and coke oven batteries at the Port Talbot plant.

In September, Tata Steel UK halted primary steel production in Port Talbot, shutting down its last blast furnace, with plans to replace it with an electric arc furnace (EAF). The company has also signed a deal with Italy’s Tenova to supply EAFs and other equipment.

The restructuring and impairment costs related to the plant closures amounted to £625 million. Revenue for the year fell by 16% year on year to £2.6 billion, mainly due to lower steel prices and reduced supply.

As part of a green transition agreement finalized in September, Tata Steel UK will receive at least £1 billion in equity from the parent company, along with £500 million from the UK government to support project costs.