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EU Emissions Trading Plans Threaten Survival Of Steel Industry

TATA Europe chief executive Kirby Adams warned yesterday that proposed changes to the European emissions trading scheme (ETS) from 2013 would threaten the survival of the steel industry in Europe.

Speaking at the launch of a £60m gas recovery scheme at Port Talbot, Mr Adams said it could cost Corus up to £500m a year.

“For most years that would exceed our profitability and that would be true for every European steel producer,” he said.

“At Port Talbot it would increase our costs by £140m a year in the form of a tax but there would be no benefit derived except that some government somewhere would have more money.

“The atmosphere would not be cleaner, Port Talbot would be poorer and we would have less cash available to invest in new technology.

“That is why we are lobbying hard to get legislation that cures the ills rather than kills the patient.”

The gas recovery system launched yesterday is designed to reduce Port Talbot’s carbon dioxide emissions by 240,000 tonnes and provide a potential £30m in cash benefits to the plant each year, but Mr Adams suggested it might not have been possible with the new ETS charges in place.

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