New Delhi, Sept. 30 -- Tata Steel signed a non-binding agreement with the Netherlands government on Monday to receive up to €2 billion of financial aid to reduce emissions at its Dutch facility.

The announcement comes five months after the company laid off about 1,600 workers, about a fifth of its Dutch workforce, to boost profitability amid competition from cheap Chinese steel and US tariffs.

Mint breaks down why the agreement is important for both parties and their stakeholders.

What is the agreement for?

Under the agreement, Tata Steel Nederland will get up to €2 billion from the Netherlands government to transition to lower emissions and low-carbon steel manufacturing at its IJmuiden plant. According to the government,...