(Reuters) -Tata Steel has signed a non-binding pact with the government of Netherlands to transition to low-carbon emission steel production at its IJmuiden plant, the Indian steelmaker said on Monday.
The plant is among the largest polluters in the country and Tata has been in talks with the Dutch government for months over subsidies to help it clean up production processes.
The government intends to provide up to 2 billion euros ($2.35 billion) under the pact, while Tata Steel’s Dutch unit has applied to the EU Innovation Fund for 0.3 billion euros, the company said in a filing to stock exchanges.
The remaining spending is expected to be financed by a combination of cash generated by Tata Steel Nederland, project financing debt and funding by Tata Steel.
Tata Steel Nederland has not finalised the total expenditure as it has not completed the full engineering of the project, the company said.
($1 = 0.8527 euros)
(Reporting by Chris Thomas in Mexico City; Editing by Sahal Muhammed)
