McAlpine wins key role on £1.25bn Port Talbot steelworks

Sir Robert McAlpine has been appointed main contractor on Tata Steel UK’s £1.25bn low carbon ‘green’ steelmaking project at the Port Talbot steelworks.

The contractor will be responsible for managing main, civil, structural and building works for the construction of a new electric arc furnace-based steel production facility under a construction management contract.

Around 2,000 workers lost their jobs at the plant in October after its last remaining blast furnace was shut down, amid protests from workers and unions.

The project will involve construction of a new electric arc furnace, ladle furnaces and associated works, to be built within the footprint of the existing plant and nearby areas.

Tata Steel UK said the new facility will produce around three million tonnes of steel per year.

Enabling works are set to begin in the first quarter of this year, with main civil, structural and building works scheduled to start in Q3 2025, subject to planning approval.

Work is due for completion in 2028, the contractor said.

Sir Robert McAlpine industrial managing director Craig Allen said the work would “play a pivotal role in turning the Port Talbot site into a world-leading hub for sustainable steel production”.

He added: “Our robust relationship with Tata Steel UK and long-standing industrial expertise makes us the ideal partner for this transformation.”

McAlpine carried out feasibility studies for Tata Steel UK in 2022 ahead of its decision to switch to an electric arc furnace (EAF). It also built various parts of the previous steelworks over a 70-year period.

The firm is already a contractor with Agratas, which is owned by the Tata parent company, on a gigafactory job in Somerset that was announced in July last year.

Tata Steel UK EAF project lead Peter Jones said: “Our new arc furnace will be one of the largest and most sophisticated of its kind in the world, so it is important that we work with highly skilled and experienced partners to ensure its success.

“We have a longstanding and trusted collaborative relationship with Sir Robert McAlpine, so are confident they are the right partner for us in the project.”

The value of the contract has not been disclosed.