Tata Steel has commenced construction of a new Electric Arc Furnace (EAF) at its Port Talbot site in the United Kingdom, as part of a joint investment of GBP 1.25 billion with the UK Government. The facility is expected to reduce carbon emissions by up to 90 percent from current levels, equivalent to approximately 5 million tonnes of carbon dioxide annually, according to the company. Commissioning is set for the end of 2027.
The UK Government is contributing GBP 500 million toward the project. The new EAF will replace traditional blast furnace operations and is designed to produce up to 3 million tonnes of steel per year using scrap sourced domestically. Tata Steel estimates the transition will support approximately 5,000 jobs across its UK operations.
Chairman of Tata Steel and Tata Group, Natarajan Chandrasekaran, attended the groundbreaking ceremony along with Tata Steel CEO and Managing Director T. V. Narendran and Tata Steel UK CEO Rajesh Nair.
The project is part of Tata Steel UK’s broader decarbonisation strategy and includes supporting infrastructure such as ladle metallurgy facilities. Construction is being led by Sir Robert McAlpine, with regional firms including Darlow Lloyd & Sons, Mii, Skelton Thomas, Wernick Buildings, Andrew Scott Ltd, and Systems Group participating in the supply chain. Technology partners include Tenova, ABB, and Clecim.
Tata Steel has stated the project will result in a cumulative reduction of 50 million tonnes of carbon dioxide over a 10-year period. The company noted that the construction phase will prioritise the use of local contractors and workforce participation.
Ironmaking operations at Port Talbot ceased in October 2024, with steelmaking activities paused pending the EAF project. In the interim, the company is importing slab and hot rolled coil to sustain manufacturing and distribution operations across its network.
Tata Steel UK is a subsidiary of the Tata Steel Group, which has an annual crude steel production capacity of 35 million tonnes. The group reported a consolidated turnover of approximately USD 26 billion for the financial year ending March 31, 2025, and operates across five continents with a workforce of over 76,000 people globally.
