MPs debate future of Tata Steel amid subsidy and carbon concerns

Tata Steel in IJmuiden is researching how to deal with two coke plants, which are threatened with closure because of they emit too many heavy metal particles and too much carcinogenic benzine, chief executive Hans van den Berg has told the Volkskrant.
The problem focuses on the plants where coal is turned into coke for use in steel blast furnaces and which have been under threat of closure for years because of the pollution.
Last month Tata paid €8.5 million in fines for breaking the environmental norms set for the units and more fines are set to follow.
Tata has said it can’t close the coke plants in the short term for economic reasons but locals are demanding action. Shutting the older coke plant in particular would be the “quickest and most effective way of reducing damage to health in the region,” according to Wijk aan Zee village council.
Van den Berg gave the interview to the paper ahead of Tuesday’s parliamentary debate on the future of Tata Steel in general.
Last year, the state and company signed a preliminary agreement on a €2 billion subsidy package to reduce carbon and other emissions by 2030. Tata has pledged to invest €4 billion in the project.
But last month, a group of 117 economists warned the Dutch government not to provide billions of euros in subsidies to Tata Steel Nederland, saying the planned support would be “economically inefficient and risky”.
Tata is responsible for some 10% of carbon emissions in the Netherlands and, experts say, only has a future here if it can shift to green energy and production. It currently produces just 4.9% of Europe’s steel in a market dominated by Germany and Italy.
Tata is also facing several mass claim law suits from locals, worried about the impact of the emissions on their health and MPs are concerned about the wisdom of injecting so much money into a company which may be forced to pay out record sums in compensation.
In addition, the Dutch government subsidy is regarded in some quarters as unfair state support for industry.
On Friday Tata was forced to close another part of the steel plant because too much cancer-causing Chrominium-6 had been released. Production can only resume when Tata has taken steps to reduce the emissions to permitted levels.
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