3 min read - 15 Jul, 2025
Work starts on £1.25bn Tata Steel electric arc furnace
Construction has begun on Tata Steel’s new electric arc furnace (EAF) at its Port Talbot steelworks. A groundbreaking ceremony was held yesterday (14 Jul), marking the official start of construction for the UK’s largest low-carbon steelmaking facility.
This latest milestone is part of a £1.25bn transformation project, supported by a £500m investment from the UK government.
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.
Construction has begun on Tata Steel’s new electric arc furnace in Port Talbot / Picture: Tata Group
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Natarajan Chandrasekaran, chairman of Tata Steel and the Tata Group, described the milestone as “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.”
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.
The Port Talbot EAF will be one of the largest in the world, producing 3 million tonnes of steel per year / Picture: Tata Group
Tata has committed to employing local contractors and local workers where it can. Construction is being led by main contractor Sir Robert McAlpine, alongside a strong regional supply chain that includes Darlow Lloyd & Sons, Mii, Skelton Thomas, Wernick Buildings, Andrew Scott Ltd and Systems Group.
Jonathan Reynolds, business secretary, 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 will set out how we’ll back the sector even further to drive growth and create well-paid jobs across the country.”
Jo Stevens, secretary of state for Wales, added: “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 £2.5 billion of investment to rebuild the UK industry, maintain jobs and drive growth.”
