Tata Steel UK Begins Construction Of Green Steel Project In Port Talbot

Tata Group Chairman N Chandrasekaran on Monday held the ground-breaking ceremony at Port Talbot in the UK to kickstart the construction of a GBP 1.25 billion green steel project to cut down carbon emissions by 90% at the site. The company is transitioning from the blast furnace route to the low-emission electric arc furnace process, which will utilise the locally available scrap.

"Tata Steel UK today celebrates a historic milestone in its green transformation journey as Natarajan Chandrasekaran, Chairman of Tata Group, joins government ministers at a groundbreaking event for the company’s state-of-the-art Electric Arc Furnace facility in Port Talbot," the steel player said in a statement.

Chandrasekaran was joined by Tata Steel CEO and Managing Director T V Narendran and Tata Steel UK CEO Rajesh Nair, for groundbreaking which marks the official start of construction for the UK’s largest low-carbon steelmaking facility.

This is part of a GBP 1.25 billion transformation to low CO2 steelmaking, supported by a GBP 500 million investment from the UK Government. The joint investment by Tata Steel and the UK Government in green steelmaking at Port Talbot is the biggest in a generation and will secure 5,000 jobs across Tata Steel UK.

The new EAF is set to be commissioned at the end of 2027 and is expected to reduce Port Talbot’s carbon emissions by approximately 90%, equivalent to 5 million tonnes of CO₂ per year, and 50 million tonnes over the next ten years.

Chandrasekaran said, "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, said Chandrasekaran, who is also the chairman of Tata Steel.

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 GBP 500 million of funding to make this project possible. Our modern Industrial Strategy will set out how we’ll back the sector even further to drive growth and create well-paid jobs across the country, 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 GBP 500 million to secure its future in the town, along with GBP 80 million to support workers and the wider community. Our Steel Strategy will also deliver GBP 2.5 billion of investment to rebuild the UK industry, maintain jobs and drive growth."

First Minister Eluned Morgan said, "This is a momentous day for heavy industry in Wales, as the electric arc furnace has secured the long-term future of steel making at Port Talbot. 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.”

India-based Tata Steel owned the UK's largest steelworks of 3 million tonnes per annum at Port Talbot in South Wales and employed around 8,000 people across all its operations in that country.

To take forward its transition plan, the company shut its upstream operations in a phased manner amid workers' protests and job cuts.

At present, Tata Steel UK is using substrate from India and Netherlands operations to service existing customers in the UK.