Senior executives from Tata join UK government ministers and contractors on site in Port Talbot today for official ground breaking on the company’s state-of-the-art electric arc furnace (EAF) facility.
The Port Talbot EAF will be one of the largest in the world, melting UK-sourced scrap steel to produce three million tonnes of steel per year.
As part of Tata Steel UK’s broader decarbonisation strategy, the project also includes new ladle metallurgy facilities, infrastructure upgrades.
Construction is being led by main contractor Sir Robert McAlpine, backed by a supply chain that includes Darlow Lloyd & Sons, Mii Engineering, Skelton Thomas, Wernick Buildings, Andrew Scott Ltd and Systems Group.
The £1.25bn transformation to low carbon steel production is supported by a £500m investment from the UK government.
The new furnace, set to be commissioned at the end of 2027, is expected to reduce Port Talbot’s carbon emissions by approximately 90%, equivalent to 5 million tonnes of CO₂ per year, while supporting 5,000 UK jobs directly.
Tata Group chairman Natarajan Chandrasekaran said ahead of the ceremony: “This is an important day for Tata Group, Tata Steel and for the UK. Today’s groundbreaking marks not just the beginning of a new electric arc furnace but a new era for sustainable manufacturing in Britain. At Port Talbot, we are building the foundations of a cleaner, greener future, supporting jobs, driving innovation, and demonstrating our commitment to responsible industry leadership. This project is also part of Tata Group’s wider investment in the UK, across steel, automotive, and technology among others, which reflects our deep and enduring partnership with this country.”
Secretary of state for Wales Jo Stevens said: “The UK government acted decisively to ensure that steelmaking in Port Talbot will continue for generations to come, backing Tata Steel with £500m to secure its future in the town, along with £80m to support workers and the wider community. Our Steel Strategy will also deliver £2.5bn of investment to rebuild the UK industry, maintain jobs and drive growth.
“The construction of Tata’s new furnace realises the promise we made to the community, while the development of floating offshore wind, plans for a Celtic Freeport and millions more for local regeneration all mean that Port Talbot has a bright future.”
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