Tata Steel begins Port Talbot EAF project as UK backs £500-mn investment

Tata Steel's Port Talbot transformation gets underway with construction of a 3 mt electric arc furnace, backed by £500 mn UK government support for low-carbon steelmaking

Port Talbot in South Wales — Tata Steel’s steel making site in the UK — is set for a new beginning as it kicked off construction of electric arc furnace (EAF), signalling a shift towards low-carbon steel production. 

This milestone — for Tata Steel and British steelmaking — was marked by a groundbreaking event on Monday where Natarajan Chandrasekaran, chairman of Tata Steel and the Tata group, was joined by government ministers. 

He was flanked by Tata Steel chief executive officer (CEO) and managing director (MD) TV Narendran and Tata Steel UK CEO Rajesh Nair as they officially broke the ground with spades. This marked the official start of construction for the UK’s largest low-carbon steelmaking facility — a shift from traditional blast furnaces. This is part of a pound 1.25 billion transformation programme supported by a pound 500 million investment from the UK government. 

 

The new EAF — having a capacity of 3 million tonnes (mt) — is set to be commissioned at the end of 2027. It is expected to reduce Port Talbot’s carbon emissions by around 90 per cent. 

The transition secures 5,000 jobs across Tata Steel UK even as the closure of heavy-end assets is said to be impacting close to 2,500 jobs. 

Speaking at the event, Chandrasekaran said, it was a very important milestone for Port Talbot. “Frankly, I have to say that this site has gone through several ups and downs,” adding that the transformation was a “historic moment.”  “I am so glad that when we proposed this project and finally the UK government approved our proposal and all the unions, the local management — everyone came together to embark on this journey. Since then, we have been moving along according to the original plan,” he added. 

“Many naysayers probably thought that this day would not come. And that’s why it’s very important,” the Tata group chairman pointed out. 

The Tata group, he said, was super-committed to the project. “We got a job in hand, we got to execute. We will get this project done and commission it by end-2027.”   The Port Talbot project is part of Tata group’s wider investment in the UK, across steel, automotive, and technology, among others.   

In a statement, earlier in the day, British business secretary Jonathan Reynolds said, “This is our industrial strategy in action and is great news for Welsh steelmaking backing this crucial Welsh industry, which will give certainty to local communities and thousands of local jobs for years to come.” 

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 pound 500 million to secure its future in the town, along with pound 80 million to support workers and the wider community.”

 

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 pound 500 million to secure its future in the town, along with pound 80 million to support workers and the wider community.”

 

“Our steel strategy will also deliver pound 2.5 billion of investment to rebuild the UK industry, maintain jobs and drive growth,” Stevens added.

 

First Minister Eluned Morgan said, “The start of the construction phase is good news for Port Talbot and neighbouring communities, and I’m especially pleased that Tata has committed to employing local contractors and local workers where it can.” 

 

Steelworkers’ union community described it as a “bittersweet” day.

 

In a statement, community assistant general secretary Alasdair McDiarmid, "This bittersweet day is a consequence of the devastating closure of the blast furnaces, but importantly a future for Port Talbot steelmaking is being secured. The workforce needs the electric arc furnace project to be both a success and a turning point, and we look forward to playing our part to get the new furnace up and running.”

 

As part of Tata Steel UK’s broader decarbonisation strategy, the steel firm said that the project also includes new ladle metallurgy facilities, infrastructure upgrades, and partnerships with technology providers such as Tenova, ABB, and Clecim.

 

The construction is being led by main contractor Robert McAlpine, alongside a strong regional supply chain that includes Darlow Lloyd & Sons, Mii, Skelton Thomas, Wernick Buildings, Andrew Scott Ltd and Systems Group.