Tata Steel Begins £1.25bn Electric Arc Furnace Construction in UK, Secures 5000 Jobs

Tata Steel UK has begun construction on a £1.25 billion electric arc furnace (EAF) at its Port Talbot steelworks, backed by a £500 million grant from the UK government, marking a major move towards sustainable steel production. The new EAF, expected to be operational by the end of 2027, will reduce the site's carbon emissions by approximately 90%, equating to a cut of around 5 million tonnes of CO₂ annually, while supporting about 5,000 UK jobs. This initiative follows the closure of Port Talbot's blast furnaces, which resulted in around 2,800 job losses, and represents a shift to melting UK-sourced scrap steel to produce up to 3 million tonnes of steel per year. Tata Steel Chairman Natarajan Chandrasekaran described the project as the start of a new era for sustainable manufacturing in Britain, emphasizing the company's broader UK investments in steel, automotive, and technology sectors. The UK government and union leaders have expressed cautious optimism, viewing the project as a critical step to rebuild and secure the future of Welsh steelmaking, although some concerns remain over the impact of previous job losses. Construction is being led by Sir Robert McAlpine with partnerships involving technology providers such as Tenova, ABB, and Clecim, illustrating a strong commitment to innovation and a greener industrial future.