Tata Steel plans £1.25bn electric arc furnace in Port Talbot

Tata Steel UK has received planning approval from Neath Port Talbot Council for a £1.25 billion Electric Arc Furnace (EAF) steelmaking facility, marking a significant transition from traditional blast furnaces. This investment is expected to reduce on-site CO2 emissions by 90% and preserve around 5,000 jobs, despite the closure of blast furnaces resulting in nearly 2,000 job losses. CEO Rajesh Nair emphasized the importance of this project for sustainable steel production in the region, with large-scale work slated to begin this summer and the EAF operational by late 2027. The initiative is supported by £500 million in government funding and is part of a broader strategy to secure a greener future for steelmaking in South Wales. Business and Trade Secretary Jonathan Reynolds noted this development as a crucial step in attracting investment and ensuring the longevity of the steel industry in the area. Tata Steel is also set to construct supporting infrastructure, including new ladle metallurgy furnaces and a scrap processing facility.