Tata Steel shares hit 52-week high after £1.25 billion investment with U.K. government

Shares of Tata Steel Ltd. hit a 52-week high on Monday after it announced a 1.25 billion investment with the U.K. government.

The investment includes a 500 million grant from the UK government for setting up a 3 million tonne electric arc furnace in Tata Steel's Port Talbot facility.

The greener EAF is expected to result in total savings of 150175 per tonne.

The British industry supercharger scheme is likely to aid EAF -based operations more than blast furnace-based operations. The brokerage expects both additional restructuring costs and policy support as the consultation process picks up..