Tata Steel UK, part of Indian conglomerate Tata Group, has begun the construction of a new Electric Arc Furnace (EAF) in Port Talbot, Wales, UK.
The new EAF is part of Tata Steel’s green transformation plan, which includes investments of £1.25bn ($1.69bn) for a new EAF, two new ladle metallurgy furnaces, new pickle tanks and upgrades to two casters and the hot strip mill. Additionally, it is supported by a £500m investment from the UK Government.
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The new EAF site will produce new steel from scrap steel, reducing energy use and reliance on raw materials. Additionally, it will decrease carbon emissions by approximately 90%, equivalent to 5 million tonnes of CO₂ per year.
Through the new EAF, Tata Steel says it will support around 5,000 direct jobs in the UK. The site will start production by the end of 2027.
Natarajan Chandrasekaran, chairman of Tata Steel and the Tata Group, said: “Today’s groundbreaking marks a new era for sustainable manufacturing in Britain.”
“This project is also part of Tata Group’s wider investment in the UK, across steel, automotive, and technology.”
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By GlobalDataTata Steel’s investment in Port Talbot will boost the UK government’s steel strategy. Through this initiative, it has committed up to £2.5bn through the National Wealth Fund (NWF) and other routes.
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 deliver £2.5bn of investment to rebuild the UK industry, maintain jobs and drive growth.”
