Here's why Tata Steel share was in demand on February 19, key details here

Tata Steel shares rose after it announced that the Neath Port Talbot Council's Planning Committee has approved its proposal for state-of-the-art Electric Arc Furnace steelmaking at Port Talbot

Tata Steel share price: Steel giant Tata Steel shares were in demand on Wednesday, February 19, 2025, as the scrip rose up to 1.74 per cent to hit an intraday high of Rs 136.85 apiece.

 

The uptick in the Tata Steel share price came after the company announced that the Neath Port Talbot Council’s Planning Committee has approved its proposal for state-of-the-art Electric Arc Furnace steelmaking at Port Talbot.

 

An Electric Arc Furnace uses electricity to melt primarily scrap steel—plentiful in the UK—rather than relying on imported iron ore and coal. 

 

Last year, the site's aging iron and steelmaking assets, including the harbour, coke ovens, sinter plant, and blast furnaces, were closed.

 

Rajesh Nair, CEO of Tata Steel UK, said, “We are very pleased to have secured approval to build sustainable steelmaking in Port Talbot. Amidst a challenging global market, this is a significant milestone for the project and we are committed to begin large-scale work on site this summer, ahead of the Electric Arc Furnace starting up from the end of 2027.”

 

With £500 million in UK Government funding, the investment is set to protect 5,000 Tata Steel UK jobs and reduce on-site CO2 emissions by 90 per cent compared to the previous blast furnace-based steelmaking process—equivalent to 1.5 per cent of the UK’s total direct CO2 emissions, Tata Steel revealed in a statement.

 

“This 1.25-billion-pound investment is the most significant investment made in the UK steel industry in decades. The facility will secure high-quality steel production, preserve thousands of jobs and safeguard steel making in Port Talbot for generations to come,” nair added. 

 

Moreover, the planning application was aimed at gaining approval for the construction of an Electric Arc Furnace, two new Ladle Metallurgy Furnaces for secondary steelmaking, and additional supporting infrastructure.

 

Business and Trade Secretary Jonathan Reynolds said, “This is a major step forward in securing a bright, long-term future for steel in South Wales, following the improved deal for Port Talbot’s transition we agreed with Tata Steel and the next phase of our Plan for Steel – unveiled last week. Today’s news will provide security for Port Talbot’s green steel transition and help give Welsh steelmaking the certainty it needs to drive growth and attract investment, as part of our Plan for Change.”

 

This further marks another major milestone in Tata Steel's shift toward green steelmaking. In December, the company signed an agreement with JCB for the supply of green steel, and last month, it appointed Sir Robert McAlpine as the project’s main works contractor. 

 

Additionally, in October last year, Tata Steel chose world-renowned metals technology manufacturer Tenova to supply the new furnace.

 

At 12:40 PM, Tata Steel share price was trading 0.97 per cent higher at Rs 135.80. In comparison, BSE Sensex was trading 0.13 per cent higher at  76,063.50.