Tata Steel To Build Electric Arc Furnace In Port Talbot, Creating 3 Million Tonnes Annual Capacity
Tata Steel’s Port Talbot steelworks currently rely on two coal-based blast furnaces that the company plans to decommission as part of the transition.
SEATTLE (Scrap Monster): Tata Steel has confirmed plans to begin construction of a £1.25 billion Electric Arc Furnace (EAF) at its Port Talbot facility in South Wales by July 2025. The company aims to commence operations by the end of 2027. CEO & MD T V Narendran and ED & CFO Koushik Chatterjee revealed the update in Tata Steel’s FY2024-25 annual report. “We are now transitioning to decarbonised and state-of-the-art EAF-based steelmaking by FY2027-28, supported by 500 million pounds in the UK Government funding,” the management stated in the report. The UK Government has granted £500 million to support Tata Steel’s decarbonisation effort, which represents one of the country’s largest industrial investments in recent decades. Tata Steel will contribute the remaining £750 million to complete the project. The planned EAF will produce up to 3 million tonnes of low-carbon steel annually using recycled scrap metal. The transition from coal-fired blast furnaces to electric arc technology will reduce the UK’s industrial carbon emissions by 8% and cut Port Talbot’s emissions by 90%, according to company estimates.
New EAF to Replace Aging Blast Furnaces At Port Talbot Site
Tata Steel’s Port Talbot steelworks currently rely on two coal-based blast furnaces that the company plans to decommission as part of the transition. The company has completed the basic engineering for the EAF and will soon place equipment orders. The new electric furnace will enhance energy efficiency, support UK-sourced scrap steel recycling, and position Tata Steel as a leader in sustainable steel production. The site’s transformation aligns with the UK’s broader climate goals and industrial strategy for greener manufacturing practices.
Job Losses And Transition Support Plan For Port Talbot Workforce
The company’s transition plan includes significant workforce restructuring. Tata Steel has announced that approximately 2,800 jobs will be lost due to the blast furnace closures. However, the EAF-based operations will retain around 5,000 jobs within Tata Steel UK and its supply chain. To support impacted workers, a £100 million Transition Board has been established. The UK Government will provide £80 million and Tata Steel will contribute £20 million. This fund will focus on retraining, relocation assistance, and community support in South Wales.
Tata Steel Commits To Long-Term Green Steel Vision In UK
Tata Steel’s investment in EAF technology represents a major shift in its long-term strategy to produce sustainable steel in the UK. The company has emphasized its commitment to green steel production and local supply chain resilience. By utilizing locally sourced scrap metal, the Port Talbot plant aims to enhance the UK’s steel self-sufficiency. Tata Steel stated that the new plant will not only reduce carbon emissions but also secure the future of steelmaking in the region for the coming decades.
Courtesy: www.newsx.com