Work has started on the construction of Tata Steel’s electric arc furnace (EAF) at Port Talbot steelworks.
The development is part of a £1.25 billion transformation to low CO2 steelmaking, supported by a £500 million investment from the UK Government. It will create the UK’s largest low-carbon steelmaking facility.
The new EAF, 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 “securing high-quality sustainable steel production and supporting 5,000 UK jobs directly”, said Tata Steel UK.
The Port Talbot EAF will be one of the largest in the world, melting UK-sourced scrap steel to produce 3 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, and partnerships with leading technology providers such as Tenova, ABB, and Clecim.
Construction is being led by main contractor Sir Robert McAlpine, alongside a regional supply chain that includes Darlow Lloyd & Sons, Mii, Skelton Thomas, Wernick Buildings, Andrew Scott Ltd and Systems Group.
Tata Group Chairman Natarajan Chandrasekaran said:
“This is a proud 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.”
Business Secretary Jonathan Reynolds joined Mr Chandrasekaran, Wales Secretary Jo Stevens and other government and company representatives to break ground on the project and start construction
Industry Minister Sarah Jones also chaired a meeting of the Steel Council at 7Steel in Cardiff to work towards finalising the upcoming Steel Strategy, backed by up to £2.5 billion of investment.
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.
“This government is committed to a bright future for our steel industry, which is why we provided £500 million of funding to make this project possible. Our modern Industrial Strategy has set out how we’ll back the sector even further, including by slashing energy costs for firms like Tata Steel to level the playing field, as part of our Plan for Change.
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 £500 million to secure its future in the town, along with £80 million to support workers and the wider community. Our Steel Strategy will also deliver up to £2.5 billion 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.”
Neath Port Talbot Council Leader Cllr Steve Hunt said:
“This is start of a new era for a town which has been shaped by steelmaking and now looks to take its place at the forefront of a greener steel industry.
“I would like to commend the role our planning department has played in getting to this point. We know that change often comes with uncertainty, so this is a significant and welcome milestone as our communities adjust to the future shape of steel making in Port Talbot.
“Following Tata’s decision to restructure its UK operations we have been working closely with partners to mitigate the impact of these changes and to enable steel making in Port Talbot to continue.
“Tata’s Electric Arc Furnace development is one of several major projects, such as the Celtic Freeport, GCRE and SWITCH, which mean we can look ahead with optimism.
“The South Wales Industrial Transition from Carbon Hub (SWITCH) development at Harbourside, Port Talbot will provide a specialist research facility to support the steel industry and its supply chain to innovate and decarbonise.
“In the meantime, the council is working alongside its Transition Board partners to deliver the UK Government funding which is helping people and businesses to meet their current challenges and to adapt to the needs of the future.”
