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Tata Steel to build electric arc furnace in Port Talbot by 2027
The steelmaker said the new furnace will cut carbon emissions from the plant by around 90%, or about five million tons of CO₂ annually
Tata Steel Ltd on Monday began the construction of an electric arc furnace at its Port Talbot plant in Wales, part of a £1.25 billion plan to switch to low‑carbon steel production at the site.
The project, which is being developed with £500 million in UK government support, is expected to be completed by the end of 2027.
The company said the new furnace will cut carbon emissions from the plant by around 90%, or about five million tons of CO₂ annually, while maintaining steel production and supporting about 5,000 jobs.
Tata group chairman N. Chandrasekaran, who attended the ceremony along with UK and Welsh government officials, said the project was part of Tata’s broader investments in the UK and reflected its long‑term commitment to the country.
Tata Steel managing director T. V. Narendran and Tata Steel UK CEO Rajesh Nair also attended the event.
UK business secretary Jonathan Reynolds said the new furnace would provide stability and well‑paid jobs in Wales.
Wales’ first minister Eluned Morgan welcomed the decision to employ local contractors.
The furnace will use scrap steel from within the UK to produce up to 3 mt of steel a year.
Tata Steel said the project would include upgrades to other metallurgical facilities, infrastructure improvements, and work with technology suppliers such as Tenova, ABB, and Clecim.
Construction is being led by Sir Robert McAlpine, along with several regional contractors.
Tata Steel UK has set a target to cut carbon emissions by 30% by 2030 and reach net‑zero steel production by 2045.
The company suspended blast furnace operations at Port Talbot in late 2024 and has been importing steel products since then to keep downstream operations running.
The company currently employs around 5,000 people in the UK and supplies steel for sectors including construction, automotive, infrastructure, and packaging.
Globally, Tata Steel produces about 35 mt of crude steel annually and reported revenue of $26 billion in the financial year ended March 2025.
The project at Port Talbot is a central part of Tata Steel UK’s efforts to reduce emissions and align its operations with the UK government’s industrial decarbonization strategy.
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